Key Takeaways:
WuXi XDC reported 1H26 adjusted net profit of RMB1.03 billion, up 37.4 percent year-over-year, with revenue rising 37 percent to RMB3.70 billion.
"Our strong first-half 2026 performance reflects the continued execution of our long-term strategy and increasing global demand for integrated bioconjugate CRDMO services," CEO Dr. Jimmy Li said.
Revenue grew 37 percent on an actual exchange rate basis and 41.5 percent on a constant exchange rate basis. Gross profit rose 40.6 percent to RMB1.37 billion, with margin expanding 0.9 percentage points to 37 percent. The company signed 51 new integrated CMC programs in the period, bringing the total to 328, and its service backlog reached approximately US$2.0 billion, up 50.4 percent year-over-year. Including potential milestone fees, total backlog reached US$2.2 billion, up 62.2 percent.
Shares surged 13.18 percent intraday to HKD79, a near one-year high, with turnover of HKD1.144 billion. UBS raised its target price from HKD87.4 to HKD94.6 and lifted 2026-28 EPS forecasts to RMB1.59, RMB2.28, and RMB3.10, reiterating a Buy rating. Nomura assigned a HKD82.6 target with a Buy rating, noting standalone revenue of RMB3.56 billion excluding BioDlink, up 32 percent year-over-year. Morgan Stanley raised its target to HKD85 with an Overweight rating.
The customer base expanded to 814 companies, with 15 of the top-20 global pharmaceutical companies now engaged. The pipeline includes 286 integrated ADC programs and 42 integrated XDC programs, with 2 commercial projects and 21 PPQ programs. The company explored over 3,100 bioconjugate molecules in the first half and over 22,000 cumulatively.
The WuXiDARx™ conjugation platform has advanced 8 ADC pipelines from preclinical to clinical stages, with WuXiDAR4™ enabling 10+ iCMC programs including 8 in clinical development. The WuXiTecan-2™ payload-linker platform was licensed to Earendil Labs and a European biotech in 2026, and a dual-payload ADC combining MMAE and WuXiTecan-2™ advanced into iCMC development.
The Singapore facility's XmAb/XBCM3 achieved GMP release in August, marking the company's first manufacturing site outside mainland China. The BioDlink acquisition closed in March, adding capacity and clients. Headcount rose to 3,628, with more than 50 percent of employees holding master's degrees or above.
The results signal continued strong demand for ADC and bioconjugate CRDMO services, with management potentially having room to raise its current USD-denominated revenue growth guidance of 40 percent, according to UBS. Investors will watch for updated full-year guidance and the ramp-up of XDP5/XDP6 drug-product lines in Wuxi and XPLM2 in Jiangyin.
This article is for informational purposes only and does not constitute investment advice.
