＜Research＞Citi: WUXI APPTEC (02359.HK) to Face Greater GPM Pressure; TP Slashed to $70

　　WUXI APPTEC (02359.HK) +2.300 (+7.705%) Short selling $16.74M; Ratio 5.706% 's 1H24 orders on hand grew 33% YoY, reflecting a higher visibility in meeting guidance targets for the full year, Citi Research issued a research report saying.

　　However, Citi Research believed that the Company will face greater pressure on gross profit margin, as capacity utilization rate is weighed down by high comparison base in 2023 and overseas expansion; local price competition as its testing and biology businesses are more focused on China; and the decline in ATU revenue dented by US Biosecure Act.

　　Related NewsJefferies Cuts WUXI APPTEC (02359.HK) TP to $97, Rating Buy

　　Citi Research kept its 2024 revenue forecast for the Company unchanged, and lowered 2025-2026 revenue forecasts by 3%/ 6% respectively.

　　Citi Research also reduced its 2024-2026 EPS forecasts by 6%/ 8%/ 11% each, and slashed its target price from $90 to $70, with rating at Buy.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-31 12:25.)

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