2Q/1H26 Preview: Resilient Order Momentum to Support Further Earnings Upgrades and Re-rating Sustainability

研报英文原文证据摘录

2Q/1H26 Preview: Resilient Order Momentum to Support Further Earnings Upgrades and Re-rating Sustainability

, supported by improving industry sentiment

(late‑stage ADCs); 2) Singapore

has shifted toward commercial execution. Key and increasing clinical activity. We see current

WuXi XDC ramp‑up (utilization, initial orders)

24-Aug debates focus on late-stage ADC conversion, backlog and project progression as supportive of

(2268.HK, B) and margins during capacity

commercial-order visibility, and the pace of ramp- growth objectives, while Singapore represents an

absorption; 3) Client concentration

up at the Singapore facility as proof points for important medium-term capacity and commercial

& pipeline progression;

medium-term growth. expansion opportunity. Any near-term margin volatility

during the ramp-up phase should be transient

We expect growth to accelerate in 2027 onwards as

Investors remain focused on commercial

project onboarding normalizes and commercial-stage

execution and margin sustainability, with debate

programs continue to ramp. Increasing contribution

centered on PPQ conversion, commercial 1) New order momentum; 2)

WuXi Biologics from milestone and royalty income should support

TBA manufacturing ramp-up, and overseas delivery Capacity utilization; 3) 2026

(2269.HK, N) structurally higher margins and improve earnings

capabilities. Greater evidence of revenue quality revenue growth outlook.

quality. We view execution on PPQ conversion,

and scalability remains necessary to support a

commercial delivery, and project additions as the key

broader re-rating.

factors required to rebuild investor confidence.

We see early evidence of demand recovery,

Investors acknowledge improving order supported by accelerating order intake from domestic