HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Industry Report - Insights on China Companion Diagnostics Market (Business Logic and Outlook)

China Healthcare Weekly (Aug.5) - HK IPO, Innovent, BeiGene, the Largest IVD Centralized Procurement

Shandong Weigao Orthopaedic - 2022 Is the Real Test. Short-Term Performance Pressure Is Inevitable

WuXi AppTec (603259.CH/2359.HK) - Behind the Proposed Disposal of A Shares

2022H2 China Healthcare Investment Strategy and Top Picks

Pharmaron Beijing Co Ltd (3759.HK/300759.CH) - The Story May Have Changed

Innovent Biologics Inc (1801.HK) - Innovent Is Not Optional but Necessary in Portfolio

Equity Bottom-Up

<ul>
<li>It seems that Mr Market was not satisfactory with WuXi AppTec’s 2022H1 performance. If excluding COVID-19 projects (which are regarded as a one-time increment), the performance growth was not high.</li>
<li>Considering that the CXO preliminary bid winning has declined largely in the US, domestic CXO would not begin to gradually reflect the slowdown of newly added orders until Q4.</li>
<li>We are concerned about WuXi AppTec's performance in 2023. As an old generation CXO, it's hard to achieve V-shaped rebound. So, 2022 is a good time to offload the Company.</li>
</ul>


It seems that Mr Market was not satisfactory with WuXi AppTec’s 2022H1 performance. If excluding COVID-19 projects (which are regarded as a one-time increment), the performance growth was not high.
Considering that the CXO preliminary bid winning has declined largely in the US, domestic CXO would not begin to gradually reflect the slowdown of newly added orders until Q4.
We are concerned about WuXi AppTec's performance in 2023. As an old generation CXO, it's hard to achieve V-shaped rebound. So, 2022 is a good time to offload the Company.


Shenzhen Kangtai Biological Pr (300601 CH)

WuXi AppTec (603259.CH/2359.HK) 2022H1 - The Concerns Behind and the Outlook