Financial Performance - Revenue for the six months ended June 30, 2024, increased by 67.6% to RMB 1,665.2 million compared to RMB 993.5 million in the same period of 2023[7]. - Gross profit rose by 133.4% to RMB 535.3 million, with a gross margin of 32.1%, up from 23.1% in the previous year[7]. - Net profit attributable to the company's owners surged by 175.5% to RMB 488.2 million, with a net profit margin of 29.3%, compared to 17.8% in the prior year[7]. - Adjusted net profit attributable to the company's owners increased by 146.6% to RMB 533.6 million, with an adjusted net profit margin of 32.0%, up from 21.8%[7]. - Revenue for the six months ended June 30, 2024, increased by 67.6% year-on-year to RMB 1,665.2 million[12]. - Gross profit for the same period rose by 133.4% year-on-year to RMB 535.3 million[12]. - Net profit attributable to the company's owners increased by 175.5% year-on-year to RMB 488.2 million[12]. - Adjusted net profit for the six months ended June 30, 2024, grew by 146.6% year-on-year to RMB 533.6 million[12]. - The company recorded a net other income of RMB 40.4 million for the six months ended June 30, 2024, primarily due to foreign exchange gains[60]. - The company reported a total comprehensive income of RMB 488,788 thousand for the six months ended June 30, 2024[124]. Operational Growth - The total number of new signed comprehensive projects increased from 17 as of June 30, 2023, to 26 as of June 30, 2024[12]. - Ongoing IND post-projects rose from 43 as of June 30, 2023, to 76 as of June 30, 2024[12]. - The total number of ongoing comprehensive projects increased from 110 as of June 30, 2023, to 167 as of June 30, 2024[12]. - The total number of drug discovery projects executed since inception increased from 350 as of June 30, 2023, to 538 as of June 30, 2024[13]. - The company expanded its workforce to 1,496 full-time employees as of June 30, 2024, a 72.2% increase year-on-year[12]. - The company has increased its drug discovery projects to a total of 538, up from 350 as of June 30, 2023, representing a growth of 54%[19]. - As of June 30, 2024, the company has 138 preclinical and phase I process development projects, an increase of 44 projects from 94 on June 30, 2023, marking a growth of 47%[20]. - The company has expanded its late-stage development and process validation projects to 29, up from 16 as of June 30, 2023, which is an 81% increase[21]. Strategic Initiatives - The company is a leading CRDMO focused on the global ADC and broader bioconjugate drug market, ranked as the second largest in the world based on 2022 revenue[10]. - The company aims to enhance its platform and drive the development of the bioconjugate drug industry, benefiting global biopharmaceutical partners and patients[10]. - The strategy of "Empower, Follow, and Win Molecules" is employed to meet the needs of clients and partners in developing bioconjugate drugs[10]. - Winning clients in the CMC stage is identified as a key growth driver for the company's future[10]. - The company is constructing a new production line in Wuxi, expected to start operations in Q4 2024, enhancing its capacity for mAb intermediates and bioconjugate drug substance and drug product[23]. - The new facility in Singapore is on track to begin GMP-compliant operations by the end of 2025 or early 2026, with plans for four production lines[24]. - The company is expanding its production capabilities for conjugated antibodies in Wuxi and building new facilities in Singapore to meet increasing demand[22]. Market Position and Demand - The global ADC drug market is projected to grow from USD 7.9 billion in 2022 to USD 64.7 billion by 2030, with a compound annual growth rate (CAGR) of 30.0%[39]. - Revenue from North America increased to RMB 823.2 million, accounting for 49.4% of total revenue, up from 37.0% in the previous period[47]. - Revenue from Europe rose to RMB 310.2 million, representing 18.7% of total revenue, compared to 23.1% previously[47]. - The number of customers grew significantly from 169 to 309 within a six-month period, indicating strong market demand[1]. - 13 out of the top 20 global pharmaceutical companies are collaborating with the company on ADC or XDC projects, contributing to 28.9% of total revenue[1]. Financial Management - The company has achieved a 100% delivery success rate from its expanded production facility in Wuxi, contributing to a robust supply chain[23]. - The company aims to reduce greenhouse gas emissions intensity by 50% by 2030, based on 2021 levels[36]. - The company plans to establish a series of forward contracts to manage currency risk associated with foreign currency transactions[80]. - The company is adopting hedge accounting for derivatives to mitigate the impact of foreign exchange rate fluctuations on profit and loss[80]. - The company reported a significant increase in share-based compensation expenses, rising to RMB 45,391,000 in the first half of 2024 from RMB 31,780,000 in 2023[82]. Corporate Governance and Compliance - The audit committee and independent auditor confirmed that the interim results and report comply with applicable accounting standards, laws, and regulations[89]. - The board is responsible for assessing and determining the nature and extent of risks the group is willing to take to achieve strategic objectives, maintaining effective risk management and internal control systems[90]. - The company has implemented anti-bribery and anti-corruption policies, strictly prohibiting any improper payments by employees or representatives[90]. - The compliance office has established a reporting mechanism to handle complaints against directors, senior management, employees, customers, and other business partners[91]. - The board confirmed that there were no changes in director information that needed to be disclosed as of June 30, 2024[87]. Shareholder Information - As of June 30, 2024, the company has issued a total of 1,198,215,456 shares[96]. - Dr. Li Jun Cai holds 32,455,840 shares, representing approximately 2.71% of the company's issued share capital[95]. - WuXi Biologics held 600,000,000 shares, representing 50.07% of the total issued shares as of June 30, 2024[98]. - The company has granted stock options with a total of 77,023,246 shares, of which 610,956 have been exercised and 1,045,438 have been canceled[105]. - The company has a total of 44,863,246 shares granted at an exercise price of RMB 1.868 on January 6, 2023, with 832,610 shares exercised[105]. Future Outlook - The company plans to continue expanding its CRDMO services, focusing on bioconjugates and monoclonal antibodies[127]. - The company is actively investing in new product development, with a focus on expanding its ADC capabilities through XDC technology[193]. - WuXi Biologics is exploring market expansion opportunities in regions such as Europe and Asia, aiming for a C% increase in market share by 2025[193]. - The company announced plans for strategic acquisitions to enhance its service offerings and technological capabilities, targeting D potential companies in the biotech sector[193].

Investment Rating - The investment rating for WuXi AppTec (02268.HK) is "Outperform the Market" [3][10]. Core Insights - The company reported strong growth in revenue and profit for the first half of 2024, with a main business revenue of 1.665 billion yuan (+67.6%) and a net profit attributable to shareholders of 488 million yuan (+175.5%) [4][10]. - The gross margin improved to 32.15% (+9.1 percentage points) and the net margin reached 28.72% (+11.5 percentage points), indicating significant enhancement in profitability [4][10]. - The number of ongoing projects increased to 705 (+23.7% compared to the end of 2023), with a total order amount of 842 million USD (+104.9%) [7][10]. - The company is expanding its production capacity globally, with significant developments in its Wuxi, Shanghai, and Singapore bases [9][10]. Summary by Sections Financial Performance - In H1 2024, the company achieved a main business revenue of 1.665 billion yuan, a year-on-year increase of 67.6%, and a net profit of 488 million yuan, up 175.5% [4][10]. - Non-IFRS adjusted net profit was 534 million yuan (+146.6%) [4]. - The gross margin was 32.15% (+9.1 percentage points) and the net margin was 28.72% (+11.5 percentage points) [4]. Order and Client Growth - The total number of ongoing projects reached 705, an increase of 23.7% from the end of 2023, with 167 integrated projects [7][10]. - The company secured 26 new projects in H1 2024, and the total order amount was 842 million USD, reflecting a growth of 104.9% [7][10]. - The number of clients increased to 419, with 13 clients being among the top 20 global pharmaceutical companies [7][10]. Technological Advancements - The company developed over 11,000 conjugated molecules in H1 2024, including more than 1,800 payload linkers and 1,200 protein molecules [9]. - The self-developed technology has evolved from WuXi DAR4 to WuXi DARX, now supporting various conjugation forms [9]. Capacity Expansion - The Wuxi base achieved a full-process "one-stop" production capability, and additional production lines are under construction [9][10]. - The Shanghai base is expanding its discovery and process development laboratories to meet increasing R&D demands [9][10]. - The Singapore base is under construction and is expected to be operational by late 2025 to early 2026 [9][10].

Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (2268 HK) with a target price raised to HKD 44.00, indicating a potential upside of 138.9% from the current closing price of HKD 18.42 [1][6]. Core Insights - The company's 1H24 performance exceeded expectations, with revenue and adjusted net profit increasing by 68% and 147% year-on-year, reaching RMB 1.67 billion and RMB 530 million respectively. The gross margin improved significantly by 9 percentage points to 32.1% due to enhanced operational efficiency and optimized procurement strategies [1][2]. - WuXi AppTec secured 26 new comprehensive projects, bringing the total to 167, including 29 Phase II or III projects and 9 projects nearing submission. The company anticipates a BLA submission in the U.S. within this year and the initiation of CMO projects starting next year [1][2]. - The North American revenue contribution rose to 49% in 1H24, up from 40% for the entire year of 2023, with expectations that North America will contribute over 40% of total revenue for the year [1][2]. Financial Forecast Adjustments - Revenue forecasts for 2024-2026 have been raised to RMB 34.0 billion, RMB 51.4 billion, and RMB 68.3 billion respectively, while adjusted net profit forecasts have been increased to RMB 9.3 billion, RMB 14.2 billion, and RMB 19.2 billion [2][3]. - The report reflects a downward adjustment of the perpetual growth rate to 2% due to uncertainties in the competitive landscape, while the DCF valuation model continues to be applied [2][3]. Financial Data Summary - For 2024E, the projected revenue is RMB 3.402 billion with an adjusted net profit of RMB 934 million, reflecting a net profit margin of 27.4% [3][7]. - The company is expected to see significant growth in revenue and profitability over the next few years, with projections indicating a revenue increase to RMB 6.827 billion and an adjusted net profit of RMB 1.922 billion by 2026E [3][7].

Investment Rating - The report maintains an "Outperform" rating for WuXi XDC Cayman (2268 HK) with a target price of HKD 33.45, indicating a potential upside from the current price of HKD 18.56 [3][7]. Core Insights - The company reported strong revenue and profit growth in H1 2024, with operating revenue reaching RMB 1.665 billion (+67.6%), a gross profit margin of 32.1% (+9.0 percentage points), and a net profit attributable to the parent company of RMB 489 million (+175.5%) [4][20]. - The revenue growth is attributed to an increase in the total number of projects, more projects entering later development stages, and enhanced production capacity to meet rising customer demand for CRDMO services [5][21]. - The order backlog as of H1 2024 was USD 842 million, reflecting a year-on-year increase of 105.0%, indicating robust demand and effective capacity expansion plans [5][21]. Financial Summary - Revenue projections for 2024-2026 are RMB 3.434 billion, RMB 4.831 billion, and RMB 6.382 billion, with year-on-year growth rates of 62%, 41%, and 32% respectively [7][22]. - Net profit attributable to shareholders is expected to be RMB 828 million, RMB 1.147 billion, and RMB 1.554 billion for the same period, with growth rates of 192%, 39%, and 35% respectively [7][22]. - The adjusted net profit is projected to be RMB 922 million, RMB 1.250 billion, and RMB 1.680 billion, with growth rates of 124%, 36%, and 34% [7][22]. Market Position and Client Base - The company has established partnerships with 13 of the top 20 pharmaceutical companies globally, contributing to 28.9% of its revenue in H1 2024 [5][21]. - The number of drug discovery projects reached 538, with 111 new projects added in H1 2024, showcasing the company's expanding project pipeline [5][21]. Capacity Expansion - The company is on track to enhance its production capacity, with new facilities expected to begin operations in late 2024 and early 2026 [5][21]. - The workforce has increased to 1,496 employees, a year-on-year growth of 72.2%, supporting the company's expansion efforts [5][21].

Investment Rating - The investment rating for WuXi AppTec (02268.HK) is "Buy" (maintained) [2] Core Views - The company has shown impressive performance in H1 2024, with revenue reaching 1.7 billion HKD, a year-on-year increase of 65.05%, and a net profit of 488 million HKD, up 175.50% year-on-year. The adjusted net profit was 534 million HKD, reflecting a growth of 146.63% [5] - The total unfulfilled orders amounted to 842 million USD, representing a year-on-year growth of approximately 105.0%, which is expected to support the company's future performance [5] - The company is positioned as a leader in the global antibody-drug conjugate (ADC) CRDMO services market, with an upward revision of profit forecasts for 2024-2026 [5] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 1.7 billion HKD, a 65.05% increase year-on-year, and a net profit of 488 million HKD, up 175.50% year-on-year. The adjusted net profit was 534 million HKD, reflecting a growth of 146.63% [5] - The number of clients served reached 419, with 13 out of the top 20 global pharmaceutical companies collaborating with the company [5] Order and Project Growth - The company has a total of 167 projects, a 51.8% increase year-on-year, with 26 new projects signed. There are 138 preclinical and phase I projects, and 29 phase II and later projects, including 9 PPQ projects expected to submit BLA in 2024 and beyond [6] - The strategy of "Empower, Follow, and Win Molecules" has successfully driven rapid project growth [6] Global Capacity Expansion - The company has established three operational bases in Wuxi, Changzhou, and Shanghai, creating a concentrated product R&D and supply chain system. The Wuxi base has achieved a significant milestone in "one-stop" production for ADCs, simplifying the supply chain and significantly shortening production cycles [7] - The new Singapore production base is expected to commence operations in 2026, further enhancing global capacity [7] Revenue Breakdown - In H1 2024, revenue from North America, China, Europe, and other regions was 790 million HKD, 488 million HKD, 295 million HKD, and 93 million HKD, respectively, with year-on-year growth rates of 172.19%, 3.57%, 38.07%, and 392.73% [7]

Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (02268.HK) [1] Core Views - The company reported strong performance in the first half of 2024, with revenue of 1.665 billion yuan (+67.6% YoY) and net profit of 488 million yuan (+175.5% YoY), exceeding expectations [3] - The North American market showed remarkable growth, with revenue of 823 million yuan (+123.9% YoY), accounting for 49.4% of total revenue [3] - The company has a robust pipeline with a total of 167 projects (+52% YoY) and a backlog of orders amounting to 842 million USD (+105.0% YoY), indicating strong future growth potential [4] Revenue and Profit Forecast - Revenue projections for 2024-2026 have been revised upwards to 34.02 billion yuan, 48.07 billion yuan, and 63.12 billion yuan respectively, with net profit estimates adjusted to 8.32 billion yuan, 11.87 billion yuan, and 15.82 billion yuan [4][9] - The current price-to-earnings (P/E) ratios are projected at 24, 17, and 13 times for 2024, 2025, and 2026 respectively [4] Financial Performance - The company achieved a gross margin of 32.1% (+9 percentage points) and a net margin of 29.3% (+11.5 percentage points) in the first half of 2024 [3] - The earnings per share (EPS) for 2024 is projected to be 0.69 yuan, increasing to 1.32 yuan by 2026 [9] Market Position - WuXi AppTec is positioned as a leading player in the ADC CRDMO sector, benefiting from a scarcity of global capacity and limited customer choices [3][4] - The company is expanding its production capabilities, with new facilities expected to come online in 2024 and 2025, enhancing its operational capacity [4]

证券研究报告·海外公司点评·药品及生物科技(HS) 药明合联（02268.HK） 2024 年 中 报 点 评 ： 业 绩 超 预 期 ， ADC CRDMO 龙头增长强劲且有望持续 2024 年 08 月 22 日 买入（维持） | --- | --- | --- | --- | --- | --- | |----------------------------|--------|----------|----------|----------|----------| | [Table_EPS] 盈利预测与估值 | 2022A | 2023A | 2024E | 2025E | 2026E | | 营业总收入（百万元） | 990.42 | 2,123.84 | 3,402.42 | 4,806.58 | 6,312.45 | | 同比(%) | 209.31 | 114.44 | 60.20 | 41.27 | 31.33 | | 归母净利润（百万元） | 155.73 | 283.54 | 831.89 | 1,186.68 | 1,581.57 | | 同比(%) | 183.51 | 82.07 | ...

药明合联（2268.HK）2024 年半年报点评 [盈利预测与财务指标 Table_Forcast] 业绩、订单强劲增长，产能释放下盈利能力显著改善 2024 年 08 月 22 日 ➢ 事件：2024 年 8 月 20 日，药明合联发布 2024 年半年报，公司上半年实现 营业收入 16.65 亿元，同比增长 67.6%，毛利 5.35 亿元，同比增长 133.4%， 净利润4.88亿元，同比增长175.5%，经调整净利润5.34亿元，同比增长146.6%， 业绩表现超预期。 ➢ 新增项目增长强劲，多个潜在重磅项目陆续推进至 PPQ 阶段。上半年公司 新签 26 个综合项目，综合项目总数达到 167 个，同比增长 51.8%，其中后期临 床项目数增至 29 个，包括 9 个 PPQ 项目，有望在 2024 年及以后提交 BLA 进 入商业化生产阶段。24H1 公司 IND 前服务收入 6.54 亿元（+76.3%），IND 后 服务收入 10.11 亿元（62.5%），随着更多项目进入后期开发阶段以及全球临床 及商业化产能提升，IND 后服务占比将有所提升。从分子种类看，ADC 和 XDC 综合项目数量分别 ...

Investment Rating - The report maintains a "Recommended" rating for WuXi AppTec, indicating strong growth potential and performance expectations [2][3]. Core Insights - WuXi AppTec reported a significant increase in revenue, achieving 1.665 billion RMB in the first half of 2024, representing a year-on-year growth of 67.6%. Gross profit reached 535 million RMB, up 133.4%, and net profit was 488 million RMB, reflecting a 175.5% increase [1]. - The company signed 26 new comprehensive projects, bringing the total to 167, a 51.8% increase year-on-year. The number of late-stage clinical projects rose to 29, including 9 projects in the PPQ stage, which are expected to submit BLA for commercialization in 2024 and beyond [1]. - The company’s revenue from IND pre-service was 654 million RMB, up 76.3%, while IND post-service revenue was 1.011 billion RMB, a 62.5% increase. The proportion of IND post-service revenue is expected to rise as more projects enter late-stage development [1]. - The company’s order backlog reached 842 million USD, a 105.0% increase year-on-year, with a total of 419 clients, including 13 of the top 20 global pharmaceutical companies, contributing to 28.9% of total revenue [2]. Financial Summary - Revenue projections for 2024-2026 are 3.256 billion RMB, 4.723 billion RMB, and 6.377 billion RMB, with year-on-year growth rates of 53.3%, 45.0%, and 35.0% respectively. Net profit is expected to be 786 million RMB, 1.188 billion RMB, and 1.672 billion RMB for the same years, with corresponding growth rates of 177.1%, 51.2%, and 40.7% [3][9]. - The company’s P/E ratios are projected to decrease from 26 in 2024 to 12 in 2026, indicating improving valuation metrics as earnings grow [3][9].

证券研究报告 港股公司|公司点评|药明合联（02268） 业绩高速增长，盈利能力显著提升 请务必阅读报告末页的重要声明 glzqdatemark1 2024年08月22日 证券研究报告 |报告要点 公司发布 2024 年半年报，2024 年上半年实现营业收入 16.65 亿元，同比增长 67.6%；净利润 4.88 亿元，同比增长 175.5%；经调整净利润 5.34 亿元，同比增长 146.6%，业绩高速增长。 公司持续提高运营效率和产能利用率，盈利能力快速提升，毛利率由 2023 年上半年 23.1%提 升至 2024 年上半年 32.1%，净利率由 2023 年上半年 17.8%提升至 2024 年上半年 29.3%，经调 整净利率由 2023 年上半年 21.8%提升至 2024 年上半年 32.0%。 |分析师及联系人 郑薇 SAC：S0590521070002 请务必阅读报告末页的重要声明 1 / 5 港股公司|公司点评 glzqdatemark2 2024年08月22日 药明合联(02268) 业绩高速增长，盈利能力显著提升 | --- | --- | |------------|------- ...