WuXi AppTec (603259 CH/2359 HK) 2025 investor day takeaways: Optimised operations and solid backlog to support visible growth

Research evidence excerpt

29 September 2025

Equity Research Report

WuXi AppTec (603259 CH/2359 HK)

Equities

Pharmaceuticals

2025 investor day takeaways: Optimised operations

and solid backlog to support visible growth

China

◆ Capacity expansion on track in China and overseas

A: MAINTAIN BUY

◆ Optimised operation to support visible growth

◆ Maintain Buy ratings on WuXi AppTec A/H and target prices

of RMB127.00/HKD124.00

On 25 September 2025, we participated in an investor open day with WuXi AppTec

at its Changzhou site; the following are the key takeaways.

Capacity expansion on track to support revenue growth: Capacity expansion at

WuXi TIDES is on track to reach over 100k litres in 2025; WuXi AppTec forecasts

58k kilograms of peptide and oligonucleotide to be produced in 2025. Phase I plants

in Taixing have been put into operation within less than two years, which is faster

than the Changzhou plants. The first plant in Singapore is expected to become

operational in 2027, with one of the next six other plants becoming operational each

year after 2027. WuXi AppTec expects the drug formulations business to be its next

growth driver after WuXi TIDES, supported by the capacity ramp up in Switzerland

(where we expect WuXi AppTec to add injectable formulations capacity), and in

Delaware, USA, where we expect solid oral dosage formulations and injectable

formulations capacity to be put into use by the end of 2026 and 2027, respectively.

Optimised operations to improve efficiencies: WuXi AppTec highlighted its

optimised operating strategy during its investor open day. The ramp-up of its new

capacity only took two months vs about two years back in 2017, supported by: (1)

scale effects, more experienced staff, and a complete training system, (2) full

implementation of the company’s digital system that improves the utilisation of

reactors to 72% (from 60%), driving higher growth in revenue rather than capacities,

and (3) a solid quality system with zero negative findings for both FDA audits this

year. WuXi AppTec expects better margins from its overseas capacities relative to

the local competition, it also expects its mid-level management team to be assigned

…