Investment Rating - The investment rating for the company is "Buy" [3][6] Core Insights - The company's revenue for 2024 was 39.24 billion, a year-on-year decrease of 2.73%, while the net profit attributable to shareholders was 9.45 billion, down 1.63%. However, the adjusted net profit increased by 2.47% year-on-year [1][2] - The company has shown a strong growth trend in orders, with a year-end backlog of 49.3 billion, representing a 47% increase year-on-year. The new signed orders for 2024 reached 53.6 billion, a growth of 25.5% compared to 42.8 billion in 2023 [2][5] - The company expects a revenue growth guidance of 10% to 15% for 2025, driven by cost reduction and efficiency improvements [2] Financial Performance Summary - For 2024, the company reported total revenue of 39.24 billion, with a breakdown of revenue by business segments: - Small molecule CDMO: 17.87 billion (up 6.4%) - TIDES: 5.8 billion (up 70.1%) - R&D services: 5.38 billion (down 9.2%) - Testing services: 5.67 billion (down 4.8%) - Biology services: 2.54 billion (down 0.3%) [2] - The company plans to increase capital expenditure to 7-8 billion in 2025, significantly up from 4 billion in 2024, to enhance production capacity [5][6] - The earnings per share (EPS) forecast for 2025 is adjusted to 4.17, with a projected PE ratio of 17 [6][8] Future Outlook - The company anticipates continued growth in its order book and revenue, with a focus on expanding production capacity and enhancing operational efficiency [2][5] - The company is also planning to increase shareholder returns through dividends and share buybacks, with a proposed dividend of 3.84 billion for 2024 [5]

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of WuXi AppTec, with current prices at 69.68 CNY and 72.35 HKD respectively [5]. Core Views - WuXi AppTec reported a revenue of 39.241 billion CNY for 2024, a decrease of 2.73% year-on-year, but a 5.2% increase when excluding COVID-19 commercialization projects. The net profit attributable to shareholders was 9.45 billion CNY, down 1.63% year-on-year, while the net profit excluding non-recurring items grew by 2.47% to 9.988 billion CNY, aligning with expectations [1]. - The company experienced a continuous improvement in performance, with a significant increase in backlog orders, reaching 49.31 billion CNY by the end of 2024, a 47% year-on-year growth, indicating robust future revenue support [1]. - The TIDES business segment showed remarkable growth, with a 70.1% year-on-year increase in revenue to 5.8 billion CNY, and a 103.9% growth in related backlog orders [2]. Summary by Sections Financial Performance - For Q4 2024, WuXi AppTec achieved a revenue of 11.54 billion CNY, a quarter-on-quarter increase of 10.31%, and a net profit of 2.92 billion CNY, up 27.22% quarter-on-quarter [1]. - The gross margin improved by 0.68 percentage points to 43.46% [1]. Business Segments - The chemical business generated a revenue of 29.05 billion CNY in 2024, with an 11.2% year-on-year growth when excluding specific projects. The small molecule D&M business contributed 17.87 billion CNY, with a 6.4% growth excluding COVID-19 projects [2]. - The TIDES business is expected to expand capacity significantly, with the total volume of peptide solid-phase synthesis reactors increasing to 41,000 liters by the end of 2024 and projected to exceed 100,000 liters by the end of 2025 [2]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been revised upwards, with net profit estimates of 10.978 billion CNY for 2025, 12.516 billion CNY for 2026, and 14.147 billion CNY for 2027, reflecting year-on-year growth rates of 16.2%, 14.0%, and 13.0% respectively [3]. - The corresponding price-to-earnings ratios for A-shares are projected to be 18, 16, and 14 for 2025, 2026, and 2027 respectively, while for H-shares, they are expected to be 18, 15, and 14 [3].

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of WuXi AppTec, with current prices at 69.68 CNY and 72.35 HKD respectively [5]. Core Insights - WuXi AppTec reported a revenue of 39.241 billion CNY for 2024, a decrease of 2.73% year-on-year, but a 5.2% increase when excluding COVID-19 commercialization projects. The net profit attributable to shareholders was 9.45 billion CNY, down 1.63% year-on-year, while the net profit excluding non-recurring items grew by 2.47% to 9.988 billion CNY, aligning with expectations [1]. - The company experienced a significant increase in backlog orders, reaching 49.31 billion CNY by the end of 2024, a 47% year-on-year growth, indicating robust future revenue support [1]. - The TIDES business segment saw a remarkable growth of 70.1% year-on-year, generating 5.8 billion CNY in revenue, with backlog orders increasing by 103.9% [2]. Summary by Sections Financial Performance - In Q4 2024, WuXi AppTec achieved a revenue of 11.54 billion CNY, a quarter-on-quarter increase of 10.31%, and a net profit of 2.92 billion CNY, up 27.22% quarter-on-quarter [1]. - The gross margin improved by 0.68 percentage points to 43.46% due to favorable currency exchange rates and investment income from the reduction of Wuxi XDC [1]. Business Segments - The chemical business generated 29.05 billion CNY in revenue for 2024, with an 11.2% year-on-year growth when excluding specific projects. The small molecule D&M business contributed 17.87 billion CNY, growing 6.4% year-on-year [2]. - The TIDES business is expected to continue its rapid expansion, with production capacity projected to exceed 100,000 liters by the end of 2025 [2]. Profitability and Valuation - The net profit forecasts for 2025-2027 have been revised upwards to 10.978 billion CNY, 12.516 billion CNY, and 14.147 billion CNY respectively, reflecting year-on-year growth rates of 16.2%, 14.0%, and 13.0% [3]. - The report indicates that the A-share price-to-earnings (P/E) ratios for 2025-2027 are projected to be 18, 16, and 14 times, while the H-share P/E ratios are expected to be 18, 15, and 14 times [3].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 90 and RMB 93, indicating a potential upside of +38% and +45% respectively [3][5][9]. Core Insights - The acceleration in new order signings, along with an additional special dividend and A-share buyback, are the major positive surprises that have driven the company's stock price up [3][8]. - For 2024, the company achieved a revenue of RMB 39.24 billion, a decrease of 2.7% YoY, but a growth of 5.2% YoY when excluding COVID-19 commercialization projects [8][10]. - The company reported a Non-IFRS adjusted net profit of RMB 10.58 billion for 2024, down 2.5% YoY, with a net profit margin of 27% [8][10]. Revenue and Growth Drivers - The small molecule D&M revenue and TIDES business remain the main drivers of revenue growth, with TIDES revenue growing by 67.9% YoY [3][8]. - The company expects TIDES business to maintain over 60% YoY revenue growth in 2025, while small molecule D&M revenue is also projected to grow significantly [8][9]. Financial Performance - In Q4 2024, the company achieved a revenue of RMB 11.54 billion, representing a 6.9% YoY increase and a 10.3% QoQ increase [10][12]. - The adjusted Non-IFRS net profit for Q4 2024 was RMB 3.24 billion, up 20.4% YoY, with a net profit margin of 28.1% [10][12]. Future Guidance - For 2025, the company expects revenue from continuing operations to reach RMB 41.5-43 billion, representing a 10%-15% YoY growth [8][9]. - The company plans to distribute an additional special dividend of RMB 1 billion and conduct a RMB 1 billion A-share buyback in 2025 [8][9]. Market Position - The company ended 2024 with a backlog of orders amounting to RMB 49.31 billion, a 47% YoY increase, indicating strong execution capabilities and international competitiveness [8][9].

证券研究报告 | 公司点评报告 2025 年 03 月 18 日 药明康德（603259.SH） 在手订单进一步提速，预计 25 年收入双位数增长 消费品/生物医药 药明康德发布 2024 年年报：2024 年公司实现收入 392.4 亿元（yoy-2.7%）， 剔除新冠商业化项目收入 yoy+5.2%，毛利率 41.5%（yoy+0.3pct），归母净 利润 94.5 亿元（yoy-1.6%），扣非归母净利润 99.9 亿元（yoy+2.5%），经 调整 Non-IFRS 归母净利润 105.8 亿元（yoy-2.5%）；其中，2024Q4 单季度 实现收入 115.4 亿元（yoy+6.9%），毛利率 43.5%（yoy+2.6pct），归母净 利润 29.2 亿元（yoy+90.6%），扣非归母净利润 33.1 亿元（yoy+62.2%）， 经调整 Non-IFRS 归母净利润 32.4 亿元（yoy+20.4%）。 强烈推荐（维持） 目标估值：NA 当前股价：69.68 元 基础数据 | 总股本（百万股） | 2888 | | --- | --- | | 已上市流通股（百万股） | 2501 | | ...

Summary of WuXi AppTec Conference Call Company Overview - **Company**: WuXi AppTec - **Year**: 2024 - **Industry**: Pharmaceutical and Biotechnology Services Key Financial Performance - **2024 Revenue**: 39.24 billion RMB, a 5.2% increase year-over-year after excluding COVID-19 commercialization projects [3][4] - **Fourth Quarter Revenue**: 11.54 billion RMB, a 6.9% year-over-year increase [3] - **Adjusted Non-IFRS Net Profit**: 10.58 billion RMB, a 2.5% decrease year-over-year, but net profit margin increased to 27%, a historical high [4][12] - **Total Orders**: 49.31 billion RMB, a 47% increase year-over-year, indicating strong future revenue potential [4][5] Client and Market Dynamics - **Active Clients**: Approximately 6,000, with 5,500 in ongoing operations, a decrease of 500 due to the termination of certain ATU and medical testing businesses [5] - **Top 20 Global Pharmaceutical Clients**: Revenue increased by 24.1%, with U.S. and European revenues growing by 7.7% and 14.4%, respectively; however, revenues in China and Japan/Korea declined [6] Capacity Expansion and Investment - **Capacity Expansion**: By the end of 2025, small molecule API reactor volume is expected to exceed 4 million liters, and peptide solid-phase synthesis reactor volume is projected to exceed 100,000 liters [4][7] - **Capital Expenditure**: Expected to be between 7 billion to 8 billion RMB in 2025, with a focus on expanding domestic and international DNA capacity [18][38] Business Segments Performance - **Wuxi Chemical Services**: Revenue of 29.05 billion RMB, an 11.2% increase year-over-year after excluding COVID-19 projects, with an adjusted IFS gross margin of 46.4% [4][9] - **Testing Services**: Revenue decreased by 34.8% to 5.67 billion RMB, with a gross margin decline to 33.3% [10] - **CRO and SMO**: Continued to lead in clinical trials, with significant contributions to new drug approvals [11] Strategic Initiatives - **Sustainability Achievements**: Recognition from global institutions, including a 3A MSCI rating and inclusion in the Dow Jones Sustainability Index [8] - **AI and Digitalization**: Ongoing integration of AI and digital technologies to enhance operational efficiency and insights [25] Future Outlook - **2025 Revenue Guidance**: Expected growth of 10% to 15%, with overall revenue projected to reach between 41.5 billion to 43 billion RMB [4][14] - **Dividend Policy**: The board has decided to maintain a 30% annual dividend payout ratio and issue a one-time special cash dividend of 1 billion RMB [4][14] Risks and Challenges - **Market Fluctuations**: Revenue from China and Japan/Korea markets has seen declines, with recovery expected to take time [40][41] - **Impact of Tariffs**: Uncertainty regarding the impact of tariffs on business and profit margins, with ongoing monitoring of legislative developments [22][36] Conclusion WuXi AppTec demonstrated solid financial performance in 2024, with significant growth in orders and a strong outlook for 2025. The company is actively expanding its capacity and investing in sustainable practices while navigating challenges in certain markets.

药明康德2024年实现收入392亿元 多肽药物爆火带动业绩增长 3月17日晚间，药明康德（603259）(603259.SH，股价69.68元，市值2012亿元)发布了2024年年报。公司2024年实现营业收入392.41亿元，剔除新冠商业 化项目后同比增长5.2%；实现归母净利润94.5亿元。 从具体业务看，TIDES(寡核苷酸和多肽)业务保持高速增长，成为业绩驱动引擎。公司管理层在电话会上表示，目前公司平台上有超过20个GLP-1项目 管线，占整个市场份额20%以上，这些管线将产生更多的GLP-1产品，也会对产能有需求。因此，公司有信心产能将来能够被充分利用。 另外，针对投资者关注的AI(人工智能)技术在医药行业的应用，药明康德方面表示，在药物行业，尤其是研发阶段，公司正在探索如何应用AI加速创新 药物研发，但这还在比较早期的阶段。 营收剔除新冠商业化项目后增长5.2%美国地区客户贡献主要收入 3月17日晚间，药明康德发布了2024年年报。2024年，公司完成年初所设定的经营目标，营业收入为392.41亿元，剔除新冠商业化项目后同比增长 5.2%；实现归母净利润94.5亿元。 从具体业务看，TIDES业务 ...

Investment Rating - The investment rating for WuXi AppTec is maintained as "Buy" for both A and H shares [6][7]. Core Views - The company reported a revenue of 39.24 billion RMB for 2024, a decrease of 2.7% year-on-year, but a growth of 5.2% year-on-year when excluding COVID-19 impacts, which aligns with expectations [1]. - The net profit attributable to shareholders for 2024 was 9.45 billion RMB, down 1.6% year-on-year, while the adjusted non-IFRS net profit was 10.58 billion RMB, a decrease of 2.5% year-on-year [1]. - The company has seen a significant increase in its order backlog, with expectations for accelerated growth in 2025-2026, leading to a positive outlook [1][2]. Summary by Sections Financial Performance - In Q4 2024, revenue increased by 6.9% year-on-year, and net profit attributable to shareholders surged by 90.6% year-on-year, driven by improved operational efficiency and favorable exchange rate fluctuations [1]. - The company’s gross margin improved to 43.5% in Q4 2024 from 40.9% in Q4 2023 [1]. Order Backlog and Growth Prospects - As of the end of 2024, the order backlog reached 49.31 billion RMB, reflecting a year-on-year growth of 47.0% [2]. - The TIDES segment showed remarkable growth, with order backlog increasing by 104% year-on-year [2]. Segment Performance - WuXi Chemistry reported a revenue of 29.05 billion RMB in 2024, a slight decrease of 0.4% year-on-year, but a growth of 11.2% year-on-year when excluding COVID-19 impacts [3]. - The CDMO segment generated 17.87 billion RMB, with a year-on-year growth of 6.4% when excluding COVID-19 impacts [3]. Profitability Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 11.79 billion RMB, 13.56 billion RMB, and 16.74 billion RMB, representing year-on-year growth rates of 24.8%, 14.95%, and 23.5% respectively [5]. - The company’s target prices are set at 89.42 RMB for A shares and 100.99 HKD for H shares, based on a sum-of-the-parts valuation [5][6]. Valuation - The company is valued at 258.24 billion RMB for A shares and 291.66 billion HKD for H shares, reflecting adjustments due to changes in the DDSU segment [11].

证券研究报告 公司研究 [Table_ReportType] 公司点评报告 [Table_StockAndRank] 药明康德(603259) [Table_Author] 唐爱金 医药首席分析师 执业编号：S1500523080002 邮 箱：tangaijin@cindasc.com 贺鑫 医药行业分析师 执业编号：S1500524120003 邮 箱：hexin1@cindasc.com 相关研究 [Table_OtherReport] 维持全年指引不变，TIDES 业务逆势增 长 药明康德(603259)：高基数下稳定增 长，盈利能力持续提升 药明康德(603259)：业绩符合预期， 多业务协同稳健发展 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦B [Table_Title] 业绩边际改善趋势明确，2025 年有望实现双 位数增长 [Table_ReportDate] 2025 年 03 月 18 日 [Table_S 事件：2025 ummar年y]3 月 17 日，公司发布《2024 年年度报告》。2024 年公司实 现营业收 ...

Investment Rating - The report maintains a positive outlook for WuXi AppTec, indicating a potential for double-digit growth in 2025 [2][3]. Core Insights - The company achieved a revenue of 39.24 billion yuan in 2024, a decrease of 2.7% year-on-year, but a 5.2% increase when excluding COVID-19 commercialization projects. The net profit attributable to shareholders was 9.45 billion yuan, down 1.6% year-on-year, while the adjusted net profit increased by 2.5% to 9.99 billion yuan [1][2]. - The revenue for Q4 2024 was 11.54 billion yuan, reflecting a quarter-on-quarter growth of 10.3% and a year-on-year growth of 6.9%. The adjusted net profit for Q4 was 3.24 billion yuan, up 20.4% year-on-year [2][3]. - The company expects revenue from continuing operations to return to double-digit growth in 2025, with a projected revenue of 41.5 to 43 billion yuan, representing a growth of 10% to 15% [2][3]. Summary by Sections Financial Performance - In 2024, the company reported quarterly revenues of 7.98 billion yuan, 9.26 billion yuan, 10.46 billion yuan, and 11.54 billion yuan, with adjusted net profits of 1.91 billion yuan, 2.46 billion yuan, 2.97 billion yuan, and 3.24 billion yuan respectively [2]. - The total revenue for 2024 was 39.24 billion yuan, with a year-on-year growth rate of -2.7%. The adjusted net profit was 10.58 billion yuan, down 2.5% year-on-year [1][2]. Business Segments - The chemical business generated 29.05 billion yuan in 2024, a slight decline of 0.4%, but a growth of 11.2% when excluding specific commercialization projects. The TIDES business saw a significant revenue increase of 70.1% to 5.8 billion yuan [3][4]. - The testing business reported a revenue of 5.67 billion yuan, down 4.8% year-on-year, primarily due to a decline in order prices [4][5]. - The biological business achieved a revenue of 2.54 billion yuan, with a 29.9% growth in non-tumor-related areas [5][6]. Future Outlook - The company plans to increase capital expenditures to 7 to 8 billion yuan in 2025, focusing on expanding global D&M capacity [7]. - Revenue projections for 2025 to 2027 are 42.32 billion yuan, 47.08 billion yuan, and 52.24 billion yuan respectively, with net profits expected to reach 11.02 billion yuan, 12.50 billion yuan, and 14.09 billion yuan [8][9].