Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (2268.HK) with a target price of HKD 50, indicating a potential upside of 25% from the current price of HKD 40 [1][5][10]. Core Insights - WuXi AppTec's 2024 performance slightly exceeded previous positive earnings forecasts, with revenue reaching RMB 4.052 billion, representing a year-on-year increase of 90.8%, and adjusted net profit of RMB 1.07 billion, up 277.2% year-on-year [5][7]. - The company expects to achieve a revenue growth rate of over 35% in 2025, supported by a strong order backlog of USD 990 million, which is a 71.2% increase year-on-year [5][7]. - North America is identified as a key growth driver, with revenue contribution from this region increasing to 50% in 2024, up from 40% in 2023 [5][7]. Financial Performance Summary - Revenue Forecasts: - 2023: RMB 2,124 million - 2024: RMB 4,052 million (90.8% YoY growth) - 2025E: RMB 5,569 million (37.4% YoY growth) - 2026E: RMB 7,618 million (36.8% YoY growth) - 2027E: RMB 9,987 million (31.1% YoY growth) [7][9]. - Net Profit Forecasts: - 2023: RMB 284 million - 2024: RMB 1,070 million (277.2% YoY growth) - 2025E: RMB 1,302 million (21.7% YoY growth) - 2026E: RMB 1,739 million (33.6% YoY growth) - 2027E: RMB 2,356 million (35.5% YoY growth) [7][9]. - Profitability Metrics: - Gross margin improved to 30.6% in 2024 from 26.3% in 2023, with adjusted net profit margin expected to remain stable [5][7]. Capital Expenditure and Growth Strategy - The company plans to invest approximately RMB 1.4 billion in capital expenditures for 2025, primarily for expanding production capacity in Singapore and Wuxi [5][7]. - WuXi AppTec aims to optimize operations to mitigate potential impacts on gross margins from new capacity coming online [5][7].
药明合联：24年业绩略超预期，维持25年35%收入增速指引-20250326