CICC released a research report stating that it has raised the Target Price of WUXI BIO (02269) by 15% to HKD 19.09, maintaining an "outperform the Industry" rating. The profit forecasts for 2024 and 2025 remain unchanged, and the profit forecast for 2026 has been introduced for the first time at RMB 4.693 billion.

WUXI BIO announced that its vaccine plant in Ireland has reached an agreement with Merck (MSD International GmbH) for Merck to acquire WUXI HYD's vaccine plant in Ireland, with a total transaction amount of approximately USD 0.5 billion. The company expects this transaction to meet customary closing conditions in the first half of 20265.

CICC believes that this transaction will have a limited impact on the financial statements. It does not affect the company's biopharmaceutical plant in Ireland or the vaccine plant in Suzhou. The WUXI HYD vaccine plant in Ireland is built exclusively for Merck's investment. The company's financial stability has further improved, achieving a win-win situation with clients.

CICC believes that through this transaction, WUXI HYD can further enhance asset efficiency and profit margins, focusing on providing more vaccine CDMO services at the Suzhou base. At the same time, it is beneficial for enhancing the company's liquidity for capacity expansion and Share Buyback. It is believed that this transaction also proves the company's ability to build and operate world-leading complex vaccine production facilities in accordance with the international standards of global vaccine giants.