Nomura's report points out that under the strong demand for Antibody-Drug Conjugate (ADC) drugs both domestically and abroad, it is expected that WuXi Biologics (02268.HK) will achieve strong growth in revenue and profits during the first half of the year, with a year-on-year increase of 44.3% and 45.3% respectively, and revenue as high as 1.43 billion RMB.

The bank maintains a 'buy' rating on WuXi Biologics, with a target price lowered from 32.52 yuan to 28.91 yuan, reflecting market volatility and geopolitical uncertainty. Considering the high demand for the company's ADC contract research, development and manufacturing organization (CRDMO) from clients, the bank maintains its revenue and profit forecasts for the fiscal years of 2024 and 2025 unchanged, with revenue forecasts 2.7% and 3.7% higher than market expectations, and profit forecasts 1.8% and 1.6% lower than market expectations.