To The Moon

Zhitong Finance APP learned that,UBSReleased a research report stating thatWuXi Biologics(02269) "buy" rating, target price of HK $142, raised the 2021-23 earnings per share forecast by 26% to 38% to reflect the stronger-than-expected epidemic and CMO-related projects, and raised the 2020-24 revenue forecast by 11%, to reflect the stronger-than-expected growth of the new crown project and the growth of drug production outsourcing (CMO).

According to the report, according to the management, there will be at least four to five non-Novel Coronavirus-related CMOs before the end of 2022, which is expected to drive the company's long-term profit growth. The management will maintain its 2021 guidance, and it is expected that revenue and net profit will increase year-on-year. 65%, the bank believes that if growth is not affected by supply shortages, the company is expected to outperform guidance.

According to the bank, according to the management, there is currently no evidence that the U.S. government will restrict U.S. companies from using CDMO companies based in China. At the same time, 20% of WuXi's customers have considered using the company's production capacity in Europe and the United States to reduce risks. Considering the company The nature of CDMO services, if drugs are produced in Europe and the United States and shipped locally, will not be regarded as exported from China to the United States, which is believed to reduce the risk of unstable drug supply.