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<Research>BofAS Predicts WUXI APPTEC to Continue Gaining Mkt Shr; TP Raised to HKD123
BofA Securities said in its research report that a recent review of China's biotech and pharma sector had indicated a surge in licensing deals in 1H25, with the total value of ...
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<Research>BofAS Predicts WUXI APPTEC to Continue Gaining Mkt Shr; TP Raised to HKD123
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BofA Securities said in its research report that a recent review of China's biotech and pharma sector had indicated a surge in licensing deals in 1H25, with the total value of licensing transactions by Chinese companies soaring by 135% YoY to USD60 billion.

Thanks to HENGRUI PHARMA (01276.HK)  +1.100 (+1.392%)   going public on the HKEX (00388.HK)  +2.600 (+0.618%)    Short selling $240.01M; Ratio 30.855%   (HKXCY.US)      , total primary market financing for innovative drugs in China rose by 42.9% YoY to USD3.33 billion, though the number of financing events dipped slightly by 6.7% (compared to a 22.3% drop in 2024).

BofA Securities raised its target price for WUXI APPTEC (02359.HK)  +2.100 (+2.094%)    Short selling $62.66M; Ratio 12.565%   from HKD115.7 to HKD123, with a Buy rating reiterated because of its robust order growth and improved operational efficiency.

The target price for WUXI BIO (02269.HK)  +0.220 (+0.705%)    Short selling $234.23M; Ratio 43.297%   was also lifted from HKD29.6 to HKD35, but its rating was kept as Neutral due to its higher valuation (2026 estimated P/E of 26.5x, compared to WUXI APPTEC at 18x).

With an improved demand outlook, BofA Securities elevated its long-term revenue forecasts for JOINN (06127.HK)  +0.460 (+1.974%)   (603127.SH)  +0.020 (+0.064%)   and FRONTAGE (01521.HK)  +0.040 (+2.740%)   . However, it expected industry leaders like WUXI APPTEC to continue capturing market share with their integrated platforms and strong operational efficiency.

Within the CXO sub-sector, consequently, the broker favored WUXI APPTEC, while maintaining an Underperform rating for JOINN and FRONTAGE. The target price for JOINN's H-shares was raised from HKD9.3 to HKD11, while FRONTAGE's target price was lifted from HKD0.8 to HKD0.95.

Stock|Rating|Target Price
WUXI APPTEC (02359.HK)  +2.100 (+2.094%)    Short selling $62.66M; Ratio 12.565%   |Buy|HKD115.7→HKD123
APPTEC (603259.SH)  +1.310 (+1.426%)   |Buy|RMB107.6→RMB114.4
------------------------------------------------
WUXI BIO (02269.HK)  +0.220 (+0.705%)    Short selling $234.23M; Ratio 43.297%   |Neutral|HKD29.6→HKD35
------------------------------------------------
JOINN (06127.HK)  +0.460 (+1.974%)   |Underperform|HKD9.3→HKD11
JOINN LABORATORIES (603127.SH)  +0.020 (+0.064%)   |Underperform|RMB8.5→RMB10.1
------------------------------------------------
FRONTAGE (01521.HK)  +0.040 (+2.740%)   |Underperform|HKD0.8→HKD0.95
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-05 12:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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