WuXi Biologics (P Chip)

Wuxi Biologics Cayman Inc. WUXI BIOLOGICS (CAYMAN) INC. is an investment holding company. The Company along with its subsidiaries is mainly engaged in the discovery, research and development, manufacturing and sales of biologics products. The Company's primary products include the clinical active pharmaceutical ingredients, sterile liquid preparations, freeze-dried preparations, as well as small molecules antibiotics for injection drugs. The Company mainly distributes its products in the United States of America (USA) and the People's Republic of China (PRC) markets.
  • Ticker2269
  • ISINKYG970081090
  • ExchangeHong Kong Stock Exchange
  • SectorPharmaceuticals & Biotechnology
  • CountryCayman Islands

Analysts

UOB
Benyamin Mikael ...
  • Carol Dou Xiao Qin
  • Jack Goh Tooan Orng
  • Jacquelyn Yow Hui Li
  • Kong Ho Meng
  • Kowit Pongwinyoo
  • Leow Huey Chuen
  • Michael Cheung Ho Bun
  • Shaun Tan
  • Singapore Research Team
  • Siwakorn Mitsantisuk
  • Vincent Khoo Boo Aik

Regional Morning Notes - Wednesday, February 19, 2020

GREATER CHINA Results Champion REIT (2778 HK/HOLD/HK$4.69/Target: HK$4.93): 2019: Results in line with expectations. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$118.90/Target: HK$132.06): Expects vaccine manufacturing to fuel revenue growth from 2022. INDONESIA Sector Poultry: Time to BUY into poultry companies; maintain OVERWEIGHT. MALAYSIA Results Berjaya Sports Toto (BST MK/HOLD/RM2.63/Target: RM2.62): 2QFY20: Slightly below expectations, but current lower interest rate climate enhances the appeal of high-yielding defensive stocks. IOI Corporation (IOI MK/BUY/RM4.50/Target: RM4.90)...

UOB
Carol Dou Xiao Qin ...
  • Joyce Chan Pui Lai
  • Michael Cheung Ho Bun
  • Shaun Tan

Greater China Daily: Wednesday, February 19, 2020

KEY HIGHLIGHTS Results Champion REIT (2778 HK/HOLD/HK$4.69/Target: HK$4.93) 2019: Results in line with expectations. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$118.90/Target: HK$132.06) Expects vaccine manufacturing to fuel revenue growth from 2022. TRADERS’ CORNER SD Gold (1787 HK): Trading Buy Range CRRC Times (3898 HK): Trading Buy Range

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

WuXi Biologics (Cayman) Inc - Expects vaccine manufacturing to fuel revenue growth from 2022

WuXi Bio has signed a US$3b vaccine contract with a global vaccine leader for an initial term from Feb 20 to Dec 39. The vaccine CDMO project is expected to fuel its revenue and earnings growth in the long term. Given its solid business expansion, we believe the company to deliver robust revenue and earnings growth in 2019. Maintain BUY with a higher target price of HK$132.06.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - Playing an important role in containing the coronavirus outbreak

The healthcare sector has shown its appealing defensiveness during the current 2019-nCoV outbreak. Many healthcare companies are playing an important role in containing the outbreak by quickly ramping up the supply of necessary medical products and services and developing new drugs. We believe companies with an anti-coronavirus concept will continue to outperform. Maintain OVERWEIGHT.

Dominic Rose ...
  • Naresh Chouhan

Global CDMOs - Impact of Alzheimer's Windfall

Our unique coverage of the biggest CDMO’s allows us to quantify the financial impact on the industry of a potential Alzheimer’s windfall from Biogen’s aducanumab. As the FDA filing draws closer, Biogen are likely to be involved in intense negotiations to find alternative sources of supply. Our highly detailed analysis shows how much aducanumab will need to be produced, who the winners are likely to be, the revenue uplift they may enjoy and the NPV uplift to each player. Lonza & Samsung Biologics are likely the biggest winners with Catalent close behind.

UOB
Benyamin Mikael ...
  • Carol Dou Xiao Qin
  • Jack Goh Tooan Orng
  • Jacquelyn Yow Hui Li
  • Kong Ho Meng
  • Kowit Pongwinyoo
  • Leow Huey Chuen
  • Michael Cheung Ho Bun
  • Shaun Tan
  • Singapore Research Team
  • Siwakorn Mitsantisuk
  • Vincent Khoo Boo Aik

Regional Morning Notes - Wednesday, February 19, 2020

GREATER CHINA Results Champion REIT (2778 HK/HOLD/HK$4.69/Target: HK$4.93): 2019: Results in line with expectations. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$118.90/Target: HK$132.06): Expects vaccine manufacturing to fuel revenue growth from 2022. INDONESIA Sector Poultry: Time to BUY into poultry companies; maintain OVERWEIGHT. MALAYSIA Results Berjaya Sports Toto (BST MK/HOLD/RM2.63/Target: RM2.62): 2QFY20: Slightly below expectations, but current lower interest rate climate enhances the appeal of high-yielding defensive stocks. IOI Corporation (IOI MK/BUY/RM4.50/Target: RM4.90)...

UOB
Carol Dou Xiao Qin ...
  • Joyce Chan Pui Lai
  • Michael Cheung Ho Bun
  • Shaun Tan

Greater China Daily: Wednesday, February 19, 2020

KEY HIGHLIGHTS Results Champion REIT (2778 HK/HOLD/HK$4.69/Target: HK$4.93) 2019: Results in line with expectations. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$118.90/Target: HK$132.06) Expects vaccine manufacturing to fuel revenue growth from 2022. TRADERS’ CORNER SD Gold (1787 HK): Trading Buy Range CRRC Times (3898 HK): Trading Buy Range

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

WuXi Biologics (Cayman) Inc - Expects vaccine manufacturing to fuel revenue growth from 2022

WuXi Bio has signed a US$3b vaccine contract with a global vaccine leader for an initial term from Feb 20 to Dec 39. The vaccine CDMO project is expected to fuel its revenue and earnings growth in the long term. Given its solid business expansion, we believe the company to deliver robust revenue and earnings growth in 2019. Maintain BUY with a higher target price of HK$132.06.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

China Healthcare: New drug GPO tender slated for 17 Jan 20. MARKET WEIGHT

The National Drug Procurement office has announced its plan to hold the next GPO tender on 17 Jan 20 and will start procurement in Apr 20. The GPO tender will include 33 drugs instead of 35. The new tender rules allow for a maximum of six winners for each drug. The new GPO tender will trigger significant price cuts for these drugs in 2020. We maintain our forecast of an average price cut of 60% for these 33 drugs. Maintain MARKET WEIGHT on the sector.

UOB
Tham Mun Hon

CHINA/HK MARKET STRATEGY FOR 2020: 143-page report – Price = US$500:-

UOB Kay Hian published on 11th December a 143-page China/HK strategy report, which highlights our preferred sectors and stocks for 1H 2020. The report includes sections on:- * Market Strategy for 2020: pages 4 – 15; * Stock Recommendations: page 16; * China 2020 Economic Outlook: pages 17 – 26; * Review of Sectors: pages 27 – 112; * Company Updates - Top Stock Picks: pages 114 – 143. For more information about the UOBKayHian dealing services in the Asia-Pacific region and the research on Asian companies (including bespoke packages and free trials), please contact David Osman or Simon Dickson i...

Wuxi Biologics (Cayman) Inc: 1 director sold

A director at Wuxi Biologics (Cayman) Inc sold 60,800,000 shares at 96.050HKD and the significance rating of the trade was 71/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. T...

UOB
Greater China Research Team

Strategy - Alpha Picks: Greater China October Conviction List

As we continue to expect market volatility, we maintain exposure to names that have resilient earnings or are expected to enjoy an earnings growth recovery, such as Ausnutria Dairy (1717 HK), CSPC (1093 HK) and Dongfeng Motor (489 HK), and add PICC P&C (2328 HK) to our BUY list.

UOB
Carol Dou Xiao Qin ...
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Julia Pan Mengyao
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Oscar Jiang
  • Shaun Tan

Greater China Daily: Wednesday, August 21, 2019

KEY HIGHLIGHTS CHINA Sector Healthcare Clearer regulatory directions benefit innovative drug development. Upgrade to MARKET WEIGHT. Results China Traditional Chinese Medicine Holdings (570 HK/BUY/HK$3.36/Target: HK$4.51) 1H19: Results in line, upgrade to BUY on attractive valuation. Haidilao International (6862 HK/HOLD/HK$31.85/Target: HK$29.92) 1H19: Slight miss; rosy prospects. Kingsoft Corp (3888 HK/HOLD/HK$15.22/Target: HK$14.00) 2Q19: JX mobile III performance misses expectation, full-year margin forecast guided down; downgrade to HOLD. WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK...

UOB
Eric Wang Zhen ...
  • Jayson Kong
  • Johnny Yum Chung Man
  • Joyce Chan Pui Lai
  • Katrina Chen Chucan
  • Ken Lee
  • Zhifeng Shen

Greater China Daily: Friday, July 19, 2019

KEY HIGHLIGHTS CHINA Sector Automobile Retail sales weakened in first half of July, but wholesale shipments rebounded. Gas Double-digit growth in national gas demand, rural CTG to accelerate. Insurance Premiums growth in line with market expectation. TRADERS’ CORNER WuXi Biologics (2269 HK): Trading Buy Range Beijing Enterprises (392 HK): Trading Sell Range

UOB
Carol Dou Xiao Qin ...
  • Johnny Yum Chung Man
  • Joyce Chan Pui Lai
  • Ken Lee
  • Michael Cheung Ho Bun

Greater China Daily: Thursday, June 20, 2019

KEY HIGHLIGHTS CHINA Sector Paper NDP guides on lacklustre 2H19 outlook; maintain UNDERWEIGHT. Update WuXi Biologics (Cayman) Inc (2269 HK/BUY/HK$72.95/Target: HK$103.50) Solid business progress and robust earnings outlook. TRADERS’ CORNER BOC Aviation (2588 HK): Trading Buy Range China Overseas PPT (2669 HK): Trading Buy Range

UOB
Joyce Chan Pui Lai ...
  • Julia Cheung Pui Man
  • Julia Pan Mengyao
  • Lee Yuk Kei
  • Neo Chen Wentao
  • Sandra Huang Jieqiong

Greater China Daily: Wednesday, April, 10, 2019

KEY HIGHLIGHTS CHINA Sector Cement 2018 results wrap-up: Better earnings visibility triggering re-rating. Commodities 2018 results wrap-up: Positive on copper and gold; neutral on steel and coal. IT Hardware Handset components: 2018 results wrap-up. Update Tiangong International (826 HK/NOT RATED/HK$1.84) Non-deal road show takeaway Small/Mid Cap Highlights Weimob (2013 HK/NOT RATED/HK$5.63) Leading player in fast-growing third-party marketing solutions market. TRADERS’ CORNER Tianneng Power (819 HK): Trading Buy Range WuXi Biologics (2269 HK): Trading Buy

Thanks to a better fundamental star rating, WUXI BIO sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to WUXI BIO (HK), active in the Pharmaceuticals industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 4 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date October 15, 2019, the closing price was HKD 81.35 and its expected value was estimated at HKD 80.20.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - Playing an important role in containing the coronavirus outbreak

The healthcare sector has shown its appealing defensiveness during the current 2019-nCoV outbreak. Many healthcare companies are playing an important role in containing the outbreak by quickly ramping up the supply of necessary medical products and services and developing new drugs. We believe companies with an anti-coronavirus concept will continue to outperform. Maintain OVERWEIGHT.

Dominic Rose ...
  • Naresh Chouhan

Global CDMOs - Impact of Alzheimer's Windfall

Our unique coverage of the biggest CDMO’s allows us to quantify the financial impact on the industry of a potential Alzheimer’s windfall from Biogen’s aducanumab. As the FDA filing draws closer, Biogen are likely to be involved in intense negotiations to find alternative sources of supply. Our highly detailed analysis shows how much aducanumab will need to be produced, who the winners are likely to be, the revenue uplift they may enjoy and the NPV uplift to each player. Lonza & Samsung Biologics are likely the biggest winners with Catalent close behind.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - The rocky GPO ride. Upgrade to OVERWEIGHT.

The second round of GPO tenders concluded last Friday with 32 drugs seeing an average price cut of 53% against the lowest procurement prices in 2018. The overall price cut is milder than the market’s and our estimates of 60%. Looking forward, we expect continued GPO programmes and a more innovative pharmaceutical industry to arise. We upgrade the sector from MARKET WEIGHT to OVERWEIGHT.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - 2020 Outlook

The GPO programme usually slows growth and depresses profit margins for generics, but fosters innovation. Moreover, the new NRDL has removed drugs from the monitoring list and put physicians’ prescription behaviour in check, paving the way for the implementation of the diagnosis-related group (DRG) system in the next few years. CROs, CDMOs and biologics have become new sources of growth. We believe the industry reshuffle will result in slower or even declining industry growth in 2020-25, but an increasingly innovative healthcare industry. Maintain MARKET WEIGHT.

UOB
Greater China Research Team ...
  • Tham Mun Hon

Strategy - Alpha Picks: January Conviction Calls

In Dec 19, equity markets had the most impressive performance in 11 months, driven by positive newsflow. Looking ahead, we expect recent policy easing to gain traction and are sticking to the strategy of picking stocks with policy support and resilient earnings growth.

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EM Pullback Opportunity Supporting our global bull market thesis, uptrends remain intact for the major global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM). At this point, concerns surrounding the Wuhan coronavirus have led to some market setbacks and deterioration in market indicators, however they have not resulted in breakdowns. This is true even for areas of the market most-directly affected, including China (MSCI China) and emerging markets (MSCI EM). For these reasons and, as long as there is no significant additional damage, we view recent weakness as a buying opportunity - especially ...

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