Wuxi Biologics (02269.HK) Becomes a Hong Kong Stock Market Hot Stock: Growth Driven by Performance Recovery and CXO Industry Rebound

Wuxi Biologics (02269.HK) recently made it to the Hong Kong Stock Market Hot List, and its strong performance stems from the resonance of multiple factors [0]. As a global leader in biopharmaceutical CDMO, the company’s performance recovered significantly in 2025, with a 56% year-on-year surge in first-half net profit attributable to shareholders [2], ending a two-year consecutive decline [0]. The stock price has risen 81.02% year-to-date and 120.94% over the past year, greatly outperforming the Hang Seng Index [0]. The current market capitalization is HK$130.858 billion, with a PE ratio of 29.78 [0].

A full rebound in the CXO industry is an important backdrop: three companies under the Wuxi Group have released positive performance forecasts, which are regarded as signals of industry recovery [0]. Morgan Stanley raised Wuxi Biologics’ earnings forecasts for 2025-27 by 6-13% and believes the valuation is attractive [3].

In terms of technological advantages: The company has a forward-looking layout in the ADC field, with Wuxi XDC accounting for about 20% of the global ADC CDMO market (ranking second globally) [0]; it has obvious advantages in microbial fermentation technology platforms, providing end-to-end services in fields such as peptides [4]; the GLP-1 drug market is growing explosively, with an expected scale of US$471.1 billion by 2032 (CAGR 33.2%) [0], and the ADC market will reach US$30.42 billion by 2033 (CAGR 11.2%) [5]. Regarding policy support, the 2025 Government Work Report proposed supporting the development of innovative drugs [0], and the construction of the Chengdu microbial commercialization base will expand production capacity [0].

1. Synergy between Industry Recovery and the Company’s Leading Position
   : As a leader in the CXO industry, Wuxi Biologics fully benefits from the overall industry rebound trend, and its performance recovery rate is faster than the industry average [0].
2. Technological Layout Aligns with Market Growth Points
   : Its technological advantages in high-growth fields such as ADC and GLP-1 enable it to capture market dividends, with great future growth potential [4,5].
3. Dual Drivers of Policy and Capacity Expansion
   : Domestic policy support for innovative drugs and capacity expansion plans provide a stable foundation for the company’s long-term development [0].

• Market Growth Dividends
  : The rapid expansion of the GLP-1 and ADC markets brings numerous business opportunities to the company [4,5].
• Capacity Expansion
  : The construction of the Chengdu base will further enhance the company’s service capabilities and consolidate its leading position [0].
• Valuation Attractiveness
  : Morgan Stanley raised its earnings forecast and believes the company’s valuation is attractive, which is expected to attract more investments [3].

• Intensified Competition
  : The CDMO industry is highly competitive, and continuous technological leadership is required to maintain market share [0].
• Changes in Regulatory Policies
  : Changes in regulatory policies in the biopharmaceutical industry may affect business operations [0].
• Market Volatility
  : Volatility in global capital markets may lead to short-term fluctuations in the stock price [0].

Wuxi Biologics (02269.HK) has become a Hong Kong Stock Market Hot Stock due to its leading position in the CXO industry, strong performance recovery, technological advantages, and policy support. Its layout in high-growth fields such as ADC and GLP-1 enables it to continue benefiting from industry growth. Despite competition and regulatory risks, the overall development outlook is positive.