Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 66.40 HKD [8][9]. Core Insights - The company reported strong financial performance for the fiscal year 2024, with revenue, net profit, and adjusted net profit reaching 40.5 billion, 10.7 billion, and 11.7 billion RMB respectively, representing year-over-year growth of 91%, 277%, and 185% [1]. - The company is positioned for rapid growth, benefiting from the expansion of the ADC industry, with an expected revenue CAGR of 27% from 2025 to 2027 [1]. - The company has a significant increase in project numbers and backlog orders, with a total of 194 comprehensive projects and a backlog of 9.91 billion USD, reflecting a 71% increase from the end of 2023 [2][3]. Financial Performance - The company achieved a gross margin of 30.6% in 2024, an increase of 4.2 percentage points from 2023, driven by capacity ramp-up and cost reduction [4]. - The company’s capital expenditures (CAPEX) for 2024 were 15.4 billion RMB, primarily for capacity construction in Singapore and Wuxi, with an expected CAPEX of 14 billion RMB in 2025 [4]. Earnings Forecast and Valuation - The adjusted net profit estimates for 2025 and 2026 have been raised by 8% and 18% to 16.2 billion and 21.7 billion RMB respectively, with a projected net profit of 25.8 billion RMB for 2027 [5][13]. - The company is expected to achieve a 36% CAGR from 2024 to 2026, with a target price adjustment to 66.40 HKD based on a PEG ratio of 1.28x [5][15]. Operational Metrics - As of the end of 2024, the company served 499 clients, a 45% increase year-over-year, and has introduced 69 new pipelines, reflecting a strong demand in the ADC sector [3]. - The company’s revenue contributions from pre-IND and post-IND services are projected to be approximately 16.76 billion and 23.77 billion RMB in 2024, with significant growth rates of 80.8% and 98.6% year-over-year [2].

Group 1 - The core viewpoint is that the company is experiencing strong growth driven by high industry demand and the advantages of its CRDMO model, leading to an upward revision of profit forecasts and target price [1][2] - For 2024, the company expects revenue and adjusted net profit to grow by 91% and 185% year-on-year, respectively, with 53 new contracts signed, bringing the total project count to 194 [2] - The company maintains a leading market share, having enabled clients to submit 30 IND applications, ranking first globally, and 60% of ADCBD transactions over $1 billion by Chinese companies utilized its CRDMO services [2] Group 2 - The company is expanding its global dual-factory layout, with North American revenue expected to grow by 180% in 2024, and the contribution from regions outside China increasing from 69% in 2023 to 74% [3] - The company is rapidly advancing its capacity construction in Singapore, expected to be operational by the end of 2025, while domestic capacity continues to expand with new production lines planned for 2025-2027 [3] - Management anticipates capital expenditures exceeding 1.4 billion RMB in 2025, supported by 3.5 billion RMB in cash and positive operating cash flow by the end of 2024 [3]

证券研究报告 公司研究 [Table_ReportType] 公司点评报告 [Table_StockAndRank] 药明合联 (2268.HK) [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 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 座 邮编：100031 [Table_Title] 全方位高增长，订单储备充足，产能持续 扩张 [Table_ReportDate] 2025 年 03 月 25 日 [Table_S 事件：2025 ummar年y]3 月 24 日，公司发布 2024 年全年业绩简报。2024 年公司 实现营业收入 40.52 亿元，同比增长 91%；实现毛利润 12.40 亿元，同比 增长 122%，对应毛利率达到 30.6%；实现净利润 10.69 亿元，同比增长 277%，对应净利率达到 26.4%；实现经 ...

证券研究报告 公司研究 [Table_ReportType] 公司点评报告 [Table_StockAndRank] 药明合联 (2268.HK) [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 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 座 邮编：100031 [Table_Title] 全方位高增长，订单储备充足，产能持续 扩张 [Table_ReportDate] 2025 年 03 月 25 日 [Table_S 事件：2025 ummar年y]3 月 24 日，公司发布 2024 年全年业绩简报。2024 年公司 实现营业收入 40.52 亿元，同比增长 91%；实现毛利润 12.40 亿元，同比 增长 122%，对应毛利率达到 30.6%；实现净利润 10.69 亿元，同比增长 277%，对应净利率达到 26.4%；实现经 ...

Core Insights - WuXi AppTec (02268.HK) reported a significant increase in net profit for 2024, soaring by 277% to RMB 1.07 billion, with total revenue reaching RMB 4.052 billion, a year-on-year growth of 90.8% [1][2] - The company maintains its revenue growth forecast of 35% for the current year, emphasizing the need to ensure this target is met [1][4] Financial Performance - For 2024, WuXi AppTec achieved a gross profit of RMB 1.24 billion, reflecting a growth rate of 121.6% [1] - The gross margin and adjusted net profit margin improved by 4.3 percentage points and 7.3 percentage points, respectively, attributed to enhanced production efficiency and cost control [3] Market Dynamics - The demand for Antibody-Drug Conjugates (ADC) continues to drive growth, with 60% of the ADC licensing deals exceeding USD 1 billion involving WuXi AppTec's clients [1][3] - The global ADC outsourcing market reached USD 2 billion in 2023 and is projected to grow to USD 11 billion by 2030, indicating a robust demand for ADC development and production services [6] Client Base and Growth - The number of clients increased from 265 in 2022 to 499 in 2024, with 32% of revenue coming from the top 20 global pharmaceutical companies [3] - The inquiry requests for iCMC projects in North America grew by 43%, contributing to a revenue share increase from approximately 40% in 2023 to 50% in 2024 [3] Strategic Focus - The company plans to focus on four key areas: advancing existing projects, launching the DP3 production line, concentrating on iCMC projects, and submitting BLA applications to regulatory authorities [5] - Despite concerns over competition from Japanese and Korean manufacturers, the management highlighted the ongoing tightness in global ADC capacity and the high technical barriers in transitioning from PPQ to commercialization [5]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 | 財 | 務 | 摘 | 要 | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | 2024年 | | | | 2023年 | | | | 變 動 | | | | | | | | | | ...

ADC CRDMO 龙头，一体化平台赋能 药明合联(2268) ——药明合联首次覆盖报告 | [Table_Industry] | | --- | | 医药 | | [Table_Invest] | | --- | | 评级： 增持 | | [table_Authors] 丁丹(分析师) | 吴晗(分析师) | | | | --- | --- | --- | --- | | | | [当前价格 Table_CurPrice] (港元)： | 35.20 | | 0755-23976735 | 010-83939773 | | | | dingdan@gtjas.com | wuhan024878@gtjas.com | [Table_Market] | | | 登记编号 S0880514030001 | S0880523080005 | 交易数据 | | 本报告导读： 全球 ADC CRDMO 市场持续扩容，公司漏斗管线推进业绩增长，"双厂战略"保障 产能建设，研发能力增强客户粘性。抢滩布局 XDC，打造第二增长曲线。首次覆盖， 给予增持评级。 投资要点： [首次覆盖，给予增持评级。 Table_Summar ...

Summary of WuXi AppTec Conference Call Company Overview - **Company**: WuXi AppTec - **Industry**: Antibody-Drug Conjugates (ADC) and Contract Development and Manufacturing Organization (CDMO) Key Performance Metrics - Revenue growth from under 100 million RMB in 2020 to over 2 billion RMB in 2023, with a projected revenue of over 3.9 billion RMB in 2024, indicating a compound annual growth rate (CAGR) of 180% [3][4] - Net profit increased from approximately 26 million RMB in 2020 to 284 million RMB in 2023, with an expected net profit exceeding 1.1 billion RMB in 2024 [3][4] Core Competencies - Significant net profit growth demonstrates strong profitability [4] - Strong core competencies include: - Coupling technology and capacity layout that shortens ADC development cycles [4] - High global ADC market growth projected to reach 64.7 billion USD in the next decade, with a CAGR exceeding 30% [4][5] - High demand for ADC outsourcing services, with a global outsourcing rate of 70% in 2022 [4][6] - Leading position in the CDMO industry, ranked second globally and first in China, with a backlog of 840 million USD as of June 30, 2024, representing a 105% year-over-year increase [4][7] Market Trends - Global ADC market growth from approximately 2 billion USD in 2018 to 7.9 billion USD in 2022, with expectations to reach 64.7 billion USD in the next decade [5] - Chinese ADC market projected to reach 66.2 billion RMB by 2030, with a CAGR of 72.8% [5] Growth Drivers - Continuous accumulation of quality clients leading to a robust order pipeline [10] - Global market expansion, including new capacity in Singapore to address client concerns [10] - Transition from ADC to bispecific antibodies (BsAb) through innovative coupling technologies [10] Challenges and Responses - Facing shareholder sell-off, biological safety legislation, and geopolitical uncertainties [11][13] - Effective responses include global layout strategies and collaborations with competitors' clients [11][13] Future Outlook - Projected revenue growth of at least 35% by 2025, with a conservative estimate based on historical performance [12][9] - Anticipated industry growth rate of 31% by 2030, with the company expected to outperform this average [9] Additional Insights - The company has a strong management team with a high retention rate of core talent [8] - Cost advantages achieved through economies of scale and centralized procurement [8]

Investment Rating - The report initiates coverage with a "Buy" rating for WuXi AppTec (02268.HK) [4] Core Viewpoints - The ADC (Antibody-Drug Conjugate) industry is experiencing rapid growth, driven by technological advancements and increased commercialization opportunities [1][27] - The company is positioned as a leading global ADC CRDMO (Contract Research, Development, and Manufacturing Organization) service provider, offering comprehensive end-to-end services that accelerate drug development [2][13] - The company's strategic focus on enhancing its service capabilities and expanding its global footprint is expected to drive sustained revenue growth [3][4] Summary by Sections Company Overview - WuXi AppTec is recognized as a global leader in the ADC CRDMO sector, providing integrated services from drug discovery to production [13] - The company has achieved significant revenue growth, with a CAGR of 180.7% from 2020 to 2023, and is expected to continue this trend [18] ADC Industry Insights - The ADC market has seen substantial growth, with the global market size increasing from $2 billion in 2018 to $10.4 billion in 2023, reflecting a CAGR of 39.1% [27] - The report highlights the increasing number of ADC candidates entering clinical trials, indicating a robust pipeline and future growth potential [31] Business Strategy and Growth - The company employs an "Enable-Follow-Win" strategy to foster innovation and expand client relationships, resulting in a diversified customer base with nearly 70% of revenue coming from North America and Europe [3] - The establishment of new production facilities, including a factory in Singapore expected to be operational by late 2025, will enhance the company's clinical trial and commercialization capabilities [2][4] Financial Projections - The company forecasts significant profit growth, with net profits projected to reach 1.03 billion yuan in 2024, 1.48 billion yuan in 2025, and 1.91 billion yuan in 2026, representing growth rates of 264%, 43%, and 29% respectively [4][5] - Revenue is expected to grow from 2.12 billion yuan in 2023 to 5.57 billion yuan in 2025, indicating a strong upward trajectory [5]

Investment Rating - The report initiates coverage with a "Buy" rating for WuXi AppTec (02268.HK) [4][6] Core Viewpoints - The ADC (Antibody-Drug Conjugate) industry is experiencing rapid growth, driven by technological advancements and increased commercialization opportunities, indicating a robust future market potential [1][27] - The company is positioned as a leading global ADC CRDMO (Contract Research, Development, and Manufacturing Organization) service provider, offering comprehensive end-to-end services that enhance drug development efficiency [2][3] - The company's strategic focus on technology collaboration and customer engagement is expected to drive significant growth in client base and market share [3][4] Summary by Sections Company Overview - WuXi AppTec is recognized as a global leader in the ADC CRDMO sector, providing integrated services from drug discovery to production, with a significant market share increase from 1.8% in 2020 to 9.8% in 2022 [13][14] - The management team is experienced, with a diverse background in the biopharmaceutical industry, contributing to the company's growth and operational success [16][19] Market Dynamics - The ADC market has shown explosive growth, with a projected compound annual growth rate (CAGR) of 39.1% from 2018 to 2023, expected to reach $66.2 billion by 2030 [27][31] - The report highlights the increasing number of ADC candidates entering clinical trials, indicating a vibrant pipeline and strong future demand for ADC products [31][32] Financial Performance - The company has demonstrated strong financial growth, with revenues increasing from 0.96 billion in 2020 to 21.24 billion in 2023, reflecting a CAGR of 180.7% [18][20] - Profitability metrics are improving, with gross margins rising from 8.4% in 2020 to 36.5% in 2021, driven by strong customer demand and enhanced production efficiency [21][22] Future Outlook - The company is expected to benefit from the ongoing demand for bioconjugate drugs, with projections for net profits to reach 1.03 billion in 2024, growing to 1.91 billion by 2026 [4][5] - The strategic expansion of production facilities and service capabilities is anticipated to further enhance the company's competitive position in the global market [2][4]