Investment Rating - The investment rating for WuXi Biologics is maintained as "Buy" [3] Core Views - The company reported a revenue of 18.68 billion yuan for 2024, representing a year-on-year growth of 9.6%, with a gross margin of 41.0%, an increase of 0.9 percentage points [1] - The adjusted net profit for 2024 is 4.78 billion yuan, reflecting a year-on-year increase of 1.8% [1] - The company expects accelerated growth in 2025, with projected revenue growth of 12-15% and a net profit increase of 18% [6] Financial Performance - Total revenue for 2023 was 17.05 billion yuan, with a projected increase to 21.22 billion yuan in 2025, indicating a compound annual growth rate of approximately 14% [2][8] - The net profit for 2023 was 3.4 billion yuan, with an expected rise to 3.973 billion yuan in 2025, showing a recovery trend after a slight decline in 2024 [2][8] - The company’s basic earnings per share (EPS) are projected to grow from 0.80 yuan in 2023 to 0.97 yuan in 2025 [2][9] Business Growth and Market Position - The company added 151 new projects in 2024, exceeding expectations, with over half coming from the U.S. market [6] - The North American region achieved a revenue growth of 32.5% year-on-year, despite geopolitical pressures [6] - The company’s commercial projects are expected to grow significantly, with 24 planned for 2025, up from 16 in the first half of 2024 [6] Valuation Metrics - The price-to-earnings (PE) ratio is projected to decrease from 31.3 in 2023 to 25.9 in 2025, indicating improving valuation as earnings grow [2][9] - The price-to-book (PB) ratio is expected to decline from 2.6 in 2023 to 2.2 in 2025, reflecting a more favorable valuation [2][9] Shareholder Information - The total market capitalization of WuXi Biologics is approximately 110.1 billion HKD, with major shareholder Li Ge holding a 14.28% stake [3]

今日港股回调，创新药再度逆市上涨！港股通创新药ETF（159570）强势大涨近3%，成交额继续爆量，盘中成交近5亿元！上周五成交额再度刷新历史，天 量成交16.49亿元！资金持续乐观，上周累计获资金净流入近2亿元，今日盘中再获净申购4300万份！ 港股通创新药ETF（159570）成分股多数飘红：乐普生物涨超12%，百济神州涨超5%，信达生物涨超3%，晶泰控股涨超2%，康方生物、药明生物、科伦博 泰生物涨超1%。 资金狂涌创新药，港股通创新药ETF（159570）近60日"吸金"近10亿元，融资余额保持历史高位，反映杠杆资金布局意愿！最新规模19.27亿元创上市新 高，1个月实现规模翻倍！ 【机构：医药见底回暖，创新药主线强化】 光大证券认为，医药行情见底回暖，优化集采政策有望稳定资产盈利能力。近期，医药行情整体已显现见底回暖迹象，从2025.1.2~2025.3.27期间，港股创 新药指数上涨26.28%，跑赢恒生科技1.20pp。2025年工作报告提出"优化药品集采政策"，有望优化产业竞争环境，仿制药利润压缩接近尾声，竞争格局趋于 稳定，龙头白马企业凭借技术壁垒与产能优势，盈利能力有望企稳。后集采时代，行 ...

Group 1 - The Hang Seng Healthcare Index (HSHCI) has seen a strong increase of 1.80%, with notable gains from companies such as Lepu Biopharma-B (up 16.56%) and Zai Lab (up 10.27%) [1] - The Hang Seng Medical ETF (513060) has risen by 2.11%, marking its third consecutive increase, with a trading volume of 4.69 billion yuan [1][2] - The second Boao Lecheng Stem Cell Conference has opened, marking a new phase of standardized and high-quality development in China's stem cell industry [2] Group 2 - Financial analysts predict that the approval and implementation of more projects in the stem cell sector will lead to advanced treatment methods benefiting the public [2] - The domestic medical innovation industry is expected to experience multiple growth opportunities, particularly for companies with true innovation capabilities in new drug development [2] - The Hang Seng Medical ETF has seen a significant growth in scale, increasing by 34.09 billion yuan over the past year, ranking in the top third among comparable funds [2] Group 3 - Since its inception, the Hang Seng Medical ETF has achieved a maximum monthly return of 28.34% and an average monthly return of 7.00% [3] - The ETF has outperformed its benchmark with an annualized excess return of 2.02% over the past year [3] - The ETF's management fee is 0.50%, and the custody fee is 0.15% [3] Group 4 - The tracking error of the Hang Seng Medical ETF is 0.033%, the highest tracking precision among comparable funds [4] - The latest price-to-earnings ratio (PE-TTM) of the Hang Seng Medical Healthcare Index is 24.97, indicating it is at a historical low compared to the past year [4] - The top ten weighted stocks in the Hang Seng Medical Healthcare Index account for 55.64% of the index, with companies like WuXi Biologics and BeiGene among the leaders [4][6]

Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a 6-month target price of HKD 30.50 per share, based on a PE ratio of 30 times for 2025 [5][7]. Core Insights - The company reported a revenue of CNY 18.675 billion for 2024, representing a year-on-year growth of 9.6%, with a net profit of CNY 3.945 billion, up 10.5% year-on-year [2][5]. - The non-COVID revenue grew by 13.1%, indicating a strong performance in clinical and commercial production services [2][3]. - The company expanded its project pipeline significantly, adding 151 new projects in 2024, bringing the total to 817 projects, which supports future revenue growth [3][4]. Revenue and Profit Summary - In 2024, the revenue breakdown includes CNY 7.062 billion from IND pre-services, CNY 3.816 billion from Phase I/II clinical development services, and CNY 7.485 billion from Phase III clinical development services and commercial production [2]. - The company expects net profits for 2025, 2026, and 2027 to be CNY 3.918 billion, CNY 4.547 billion, and CNY 5.332 billion, respectively, with growth rates of 16.75%, 16.05%, and 17.26% [5][12]. Business Model and Growth Drivers - The integrated CRDMO platform is enhancing the company's operational efficiency and driving steady business growth, with a significant reduction in delivery time from DNA to IND now at 9 months [4]. - The report highlights the potential for accelerated project delivery with 148 new development projects added in 2024, and a steady increase in production batches expected in 2025 [4][5]. Market Performance - The company's stock has shown strong performance with a relative return of 18.2% over the past month and 89.4% over the past year [8]. - The current stock price is HKD 27.75, which is below the target price, indicating potential upside for investors [7].

Core Viewpoint - WuXi Biologics reported a revenue of 18.6754 billion yuan for 2024, marking a year-on-year growth of 9.6%, while the net profit was 3.945 billion yuan, up 10.5%, but the profit attributable to shareholders decreased by 1.3% [1][2] Financial Performance - The company experienced a second consecutive year of profit contraction, but it anticipates a return to accelerated growth in 2025 after absorbing the impacts of COVID-19 [1][4] - The adjusted net profit attributable to shareholders was 4.784 billion yuan, reflecting a year-on-year increase of 1.8% [2] - The total number of comprehensive projects increased by 151, reaching 817, with over half of the new projects coming from U.S. clients [2][3] Regional Performance - Revenue from North America grew significantly by 32.5% to 10.696 billion yuan, accounting for 57.3% of total revenue [3] - The increase in North American revenue was attributed to both existing client orders and the expansion of Chinese pharmaceutical projects into the U.S. market [3] Business Segments - Revenue from biopharmaceuticals was 14.731 billion yuan, representing 78.9% of total revenue, while revenue from XDC services doubled to 3.944 billion yuan [4] - IND pre-service revenue grew by 30.7% to 7.062 billion yuan, making up 37.8% of total revenue [4] - The commercial production segment is expected to significantly contribute to overall growth, with potential revenue increases from domestic biopharmaceutical companies expanding internationally [5] Pipeline and Growth Potential - The company has a diverse pipeline with 151 bispecific/multispecific antibodies, 194 ADCs, 80 fusion proteins, and 24 vaccines, with growth rates of 32% for bispecific/multispecific antibodies and 36% for ADC projects [5] - The management emphasized that the growth of Chinese biopharmaceutical companies and their international expansion will greatly benefit WuXi Biologics [5]

Investment Rating - The report assigns a "Buy" rating for WuXi Biologics (2269.HK) based on its strong performance and growth potential in the biopharmaceutical sector [13]. Core Insights - The overall performance of the company meets expectations, with significant acceleration in the second half of the year driven by a recovery in the North American market, high growth in preclinical services (R&D), and strong demand for ADC projects [2][5]. - The company has a robust project and order reserve, indicating a solid foundation for sustained growth, with 151 new projects signed in 2024, a 14.4% increase from 2023 [4][5]. - The company operates a leading CRDMO platform with three long-term growth curves: Research (R), Development (D), and Manufacturing (M), which are expected to enhance its competitive edge [6]. Financial Performance Summary - In 2024, the company achieved total revenue of 18.675 billion yuan, a year-on-year increase of 9.6%, with non-COVID revenue growing by 13.1% [1][2]. - The gross profit for 2024 was 7.651 billion yuan, reflecting a gross margin of 41.0%, while net profit reached 3.945 billion yuan, a 10.5% increase [1][7]. - The adjusted net profit attributable to the parent company was 4.784 billion yuan, showing a 1.8% increase, with an adjusted net margin of 25.6% [1][7]. Revenue Breakdown - Revenue from North American clients was 10.696 billion yuan, a 32.5% increase, while revenue from Chinese clients decreased by 9.7% to 2.820 billion yuan [2][3]. - Preclinical service revenue grew by 30.7% to 7.062 billion yuan, while late-stage clinical development revenue declined by 3.2% to 7.485 billion yuan [3][4]. - Revenue from biopharmaceutical projects decreased by 2.6% to 14.731 billion yuan, while XDC project revenue surged by 106.9% to 3.944 billion yuan [3][4]. Future Projections - The company anticipates a revenue growth of 12-15% in 2025, with core business revenue expected to grow by 17-20% [5]. - Projected revenues for 2025-2027 are 21.361 billion yuan, 24.391 billion yuan, and 27.421 billion yuan, respectively, with net profits expected to reach 4.028 billion yuan, 4.639 billion yuan, and 5.280 billion yuan [7][8].

Investment Rating - The investment rating for the company is Neutral [2][19]. Core Views - The company is expected to see a recovery in performance in the second half of 2024, with revenue and adjusted net profit projected to grow by 9.6% and 1.8% year-on-year, respectively. Revenue growth excluding COVID-related projects is anticipated to be 13.1% [6][21]. - The target price has been raised to HKD 25.00, reflecting a potential downside of 3.5% from the current price of HKD 25.90 [1][19]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 17,034 million - 2024: RMB 18,675 million (11.6% growth) - 2025E: RMB 21,417 million (14.7% growth) - 2026E: RMB 25,299 million (18.1% growth) - 2027E: RMB 28,918 million (14.3% growth) [5][21]. - Net profit estimates are: - 2023: RMB 3,837 million - 2024: RMB 4,097 million - 2025E: RMB 5,051 million (43.7% growth) - 2026E: RMB 6,580 million (30.3% growth) - 2027E: RMB 7,788 million (18.4% growth) [5][21]. - The company’s market capitalization is approximately HKD 106.37 billion, with a year-to-date stock price change of 47.49% [4][21]. Business Performance - The company added 151 comprehensive projects in the year, with 90 in the second half and 61 in the first half of 2024. The CRDMO industry is showing signs of improvement [6][21]. - The backlog of uncompleted orders reached USD 18.5 billion at the end of 2024, a decrease of 10% year-on-year, primarily due to the termination of a Merck vaccine project [6][21]. - The management has guided for a revenue growth of 12-15% in 2025, driven by existing orders and pipeline conversions [6][21]. Valuation Metrics - The company is currently trading at a price-to-earnings (P/E) ratio of 21 times the 2025 earnings and a price-to-earnings growth (PEG) ratio of 1.1 [6][21]. - The projected earnings per share (EPS) for 2025 is RMB 1.18, with a corresponding P/E ratio of 20.5 [5][21]. Market Context - The biotechnology financing environment is showing signs of recovery, which is expected to support the company's growth trajectory [11][21]. - The company operates in a competitive landscape, with external uncertainties still present, making the current valuation reasonable [6][21].

2025 年 3 月 26 日 公司研究 临床前收入快速恢复，整体项目数稳步提升 ——药明生物（2269.HK）2024 年年报点评 研发技术能力强，对外授权增厚利润。公司多个技术平台赋能客户多样化需求， 目前管线内有 313 个 first-in-class 项目，151 个双抗/多抗项目以及 194 个 ADC 项目。公司 TCE 平台开发能力已得到多方认可，基于该平台开发的产品被授权 给默沙东/GSK 等海外公司，且 Medigene AG 也和公司达成战略研究服务合作， 开发 TCR-TCE 疗法。公司技术平台已赋能 50+具里程碑付款及销售分成潜力的 项目，R 技术平台有权获得总额约为 1.4 亿美元的近期付款，潜在总交易金额超 过 23 亿美元，将增厚公司未来利润。 盈利预测、估值与评级：考虑到全球大分子 CDMO 竞争加剧，以及地缘政治影 响，下调 25-26 年归母净利润预测为 42.8/49.3 亿元（前值为 47.4/53.9 亿元， 分别下调 9.7%/8.5%），新增 27 年归母净利润预测为 57.5 亿元，对应 PE 为 23/20/17 倍。公司是我国大分子 CDMO 龙头，且技 ...

Investment Rating - The investment rating for WuXi Biologics (2269 HK) is Neutral [2][19]. Core Views - The report indicates a recovery in performance for the second half of 2024, with strong margin improvements across the three main business segments of RDM [6]. - The target price has been raised to HKD 25.00, reflecting a potential downside of 3.5% from the current price of HKD 25.90 [1][6]. Financial Overview - Revenue projections for WuXi Biologics are as follows: - 2023: RMB 17,034 million - 2024: RMB 18,675 million (growth of 9.6%) - 2025E: RMB 21,417 million (growth of 14.7%) - 2026E: RMB 25,299 million (growth of 18.1%) - 2027E: RMB 28,918 million (growth of 14.3%) [5][21]. - Net profit estimates are: - 2023: RMB 3,837 million - 2024: RMB 4,097 million - 2025E: RMB 5,051 million (growth of 43.7%) - 2026E: RMB 6,580 million (growth of 30.3%) - 2027E: RMB 7,788 million (growth of 18.4%) [5][21]. - The company expects a revenue growth of 12-15% in 2025, driven by existing orders and pipeline conversions [6]. Market Performance - The stock has shown a year-to-date increase of 47.49% [4]. - The 52-week high and low for the stock are HKD 28.50 and HKD 10.26, respectively [4]. Business Segments - The report highlights that the antibody/protein business has demonstrated resilience amid external fluctuations, with a total of 151 new integrated projects added in the year [6]. - The report notes that the North American market recorded a high growth rate of 32.5%, while Europe and mainland China showed low single-digit growth [6]. Valuation Metrics - The current stock price corresponds to a P/E ratio of 21 times the 2025 earnings and a PEG ratio of 1.1 [6]. - The report emphasizes that despite positive free cash flow, the company plans to invest and repurchase shares, which may limit dividend payouts [6].

Investment Rating - The report assigns a "Buy" rating for WuXi Biologics (2269.HK) based on its strong performance and growth potential [1]. Core Views - The overall performance of the company meets expectations, with significant acceleration in the second half of the year. The company achieved a total revenue of 18.675 billion yuan in 2024, a year-on-year increase of 9.6%, and a non-COVID revenue growth of 13.1% [2][3]. - The company has a robust project and order reserve, indicating a solid foundation for sustained growth. In 2024, the company signed 151 new projects, an increase from 132 in 2023, with over half coming from the U.S. [4][5]. - WuXi Biologics operates a globally leading CRDMO platform with three long-term growth curves: Research (R), Development (D), and Manufacturing (M) [6]. Summary by Sections Financial Performance - In 2024, the company reported a gross profit of 7.651 billion yuan, a 12.1% increase, with a gross margin of 41.0%. The net profit reached 3.945 billion yuan, up 10.5%, with a net margin of 21.1% [1][2]. - The adjusted net profit attributable to the parent company was 4.784 billion yuan, reflecting a 1.8% year-on-year growth, with an adjusted net margin of 25.6% [1]. Revenue Breakdown - Revenue from North American clients was 10.696 billion yuan, a 32.5% increase, accounting for approximately 52.3% of total revenue. In contrast, revenue from Chinese clients decreased by 9.7% to 2.820 billion yuan [2][3]. - The revenue from preclinical services grew by 30.7% to 7.062 billion yuan, while late-stage clinical services saw a decline of 3.2% to 7.485 billion yuan [3]. Project and Order Reserves - The company has a total of 402 preclinical projects and 243 phase I projects, with a total unfulfilled order amount of approximately 18.5 billion USD, indicating a strong pipeline for future growth [4][5]. - The company expects a revenue growth of 12-15% in 2025, with a continued increase in profitability [5]. Earnings Forecast - Projected revenues for 2025-2027 are 21.361 billion yuan, 24.391 billion yuan, and 27.421 billion yuan, respectively, with net profits of 4.028 billion yuan, 4.639 billion yuan, and 5.280 billion yuan [7].