研究报告Research Report 4 Apr 2024 药明生物 Wuxi Biologics Cayman (2269 HK) 2023年报点评：收入利润稳健增长，看好公司多项技术平台驱动一体化CRDMO龙头长期增长 Revenue and profit grew steadily, optimistic about long-term growth driven by multiple technology platforms [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab维le_持Inf优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 事件 评级 优于大市OUTPERFORM 现价 HK$14.20 公司发布2023年业绩：2023年，公司收入170.34亿元，同比增长 目标价 HK$30.88 11.6%，非新冠项目收入 165.1 亿元，同比增长 37.7%。毛利率 HTI ESG 5.0-3.2-4.0 40.1%（-3.9pp），经调整归母纯利 47.0 亿元，同 ...

Investment Rating - The investment rating for WuXi Biologics (02269.HK) is "Buy" [3][22]. Core Views - The company achieved a revenue of 17.034 billion yuan in 2023, representing a year-on-year growth of 11.56%, while the net profit attributable to shareholders decreased by 23.09% to 3.4 billion yuan due to several factors including capacity ramp-up, reduced investment income, and increased operational expenses [4][8]. - Non-COVID projects have shown significant growth, with non-COVID revenue reaching 16.506 billion yuan, a year-on-year increase of 37.7%, accounting for 96.9% of total revenue [4][10]. - The company has made substantial progress in its dual antibody technology, WuXiBody™, with 45 collaborations established, and several projects expected to receive IND approval in 2024 [15][18]. - The company is expanding its global production capacity with ongoing projects in Ireland, Germany, the United States, and Singapore, aiming to enhance its global service capabilities [18][20]. - WuXi Biologics has maintained a robust quality system, successfully passing 33 regulatory inspections from major global authorities since 2017, establishing itself as a leader in commercial production in China [20][22]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 17.034 billion yuan, with a net profit of 3.4 billion yuan, reflecting a decrease in profit margins due to various operational challenges [4][8]. - The overall gross margin for 2023 was 40.08%, down 3.95 percentage points year-on-year, while the net margin was 19.96%, down 8.99 percentage points [8][10]. Non-COVID Projects - Non-COVID related revenue surged to 16.506 billion yuan, marking a 37.7% increase, with late-stage clinical and commercial production projects seeing a remarkable 101.7% growth [4][10]. - The total number of projects reached 698, with 24 commercial production projects, and a record number of new non-COVID projects added [10][15]. Technological Advancements - The WuXiBody™ technology has been recognized in the industry, with multiple projects in various stages of development, showcasing the company's innovative capabilities [15][18]. Global Expansion - The company is actively enhancing its global production capabilities, with facilities in multiple countries expected to achieve operational milestones ahead of schedule [18][20]. Quality Assurance - WuXi Biologics has established a comprehensive quality system, achieving certifications from major regulatory bodies, which underscores its commitment to quality in biopharmaceutical production [20][22].

Investment Rating - The investment rating for WuXi Biologics (02269.HK) is "Buy" (maintained) [2][5][12] Core Views - Non-COVID business shows robust growth, with total revenue for 2023 reaching 17.051 billion yuan, a year-on-year increase of 11.5%. Non-COVID projects generated revenue of 16.506 billion yuan, up 37.7% year-on-year [5][6] - The company has a strong order backlog, with total unfulfilled orders increasing to 20.592 billion USD by the end of 2023, providing a solid foundation for future revenue growth [5][6] - The company is accelerating its global capacity expansion, with significant growth in its European operations, which have become the fastest-growing market for the company [7] Financial Summary - Revenue for 2023 was 17.051 billion yuan, with a net profit of 3.400 billion yuan, reflecting a year-on-year decline of 23.1%. Adjusted net profit was 4.699 billion yuan, down 4.6% [5][8] - The projected net profits for 2024-2026 are 4.047 billion yuan, 5.047 billion yuan, and 6.257 billion yuan respectively, with corresponding EPS of 0.95, 1.19, and 1.47 yuan [5][8] - The company’s P/E ratios for 2024-2026 are projected to be 13.8, 11.1, and 9.0 times respectively, indicating a favorable valuation compared to its peers [5][8] Project and Market Development - As of the end of 2023, the company had a total of 698 projects, an increase of 18.7% year-on-year, with significant contributions from late-stage clinical and commercialization projects [6][7] - The company is building a CRDMO service center in Singapore with a designed capacity of approximately 120,000 liters, and its Irish facility is expected to reach breakeven in 2024 [7]

Investment Rating - The report maintains a "Hold" rating for WuXi Biologics (2269.HK) and lowers the target price to HKD 20, indicating a potential upside of 45% from the current price of HKD 13.76 [2][4]. Core Views - The revenue growth guidance for 2024 is set at 5%-10%, which is significantly below previous expectations and market consensus [2][3]. - The company’s 2023 revenue reached RMB 17 billion, reflecting an 11.6% year-over-year increase, while the adjusted net profit was RMB 4.7 billion, down 4.6% year-over-year [3][9]. - The report highlights that geopolitical factors are expected to impact the company's stock price in the short term [2][3]. Financial Summary - For 2023, total revenue was RMB 170 billion, with non-COVID revenue growing by 37.7% year-over-year [3]. - The adjusted net profit for 2023 was RMB 47 billion, which was slightly above market expectations [3]. - The gross margin for 2023 was 40.1%, marking a decline of 3.9 percentage points year-over-year, attributed to the ramp-up of overseas production capacity [3][9]. - The second half of 2023 saw a revenue increase of only 6% year-over-year, primarily driven by XDC revenue growth [3][9]. - The company expects approximately 70% of its 2024 revenue to be secured from orders on hand by the end of 2023 [3]. Revenue and Profit Forecast - The revenue forecast for 2024 is adjusted downwards, with expectations of RMB 17.9 billion, reflecting a 5.3% increase year-over-year [8][11]. - The adjusted net profit for 2024 is projected to be RMB 3.6 billion, representing a 7.3% increase year-over-year [8][11]. - The report introduces financial forecasts for 2026, with expected revenue of RMB 21.6 billion and net profit of RMB 4.6 billion [8][11]. Market Performance - The stock has a 52-week price range of HKD 12.9 to HKD 56.7, with a current market capitalization of HKD 58.6 billion [4][9]. - The average daily trading volume over the past three months was HKD 1.3 billion [4].

Investment Rating - The report does not specify a clear investment rating for the company [1] Core Views - The company's 2023 annual report shows revenue of 17.03 billion RMB, a year-on-year increase of 11.6%, while net profit attributable to shareholders decreased by 23.1% to 3.4 billion RMB [2] - Non-COVID revenue grew by 37.7% to 16.51 billion RMB, indicating robust growth in non-COVID projects [2] - The number of new projects reached a historical high in 2023, with a total of 132 new projects added throughout the year [2] - The company's "Winning Molecules" strategy continues to drive future revenue growth, with a backlog of approximately 20.6 billion USD in unfulfilled orders [2] - The Singapore integrated CRDMO center has commenced construction, and the Irish base is expected to achieve breakeven in 2024, indicating positive capacity ramp-up [3] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 17.03 billion RMB, with a growth rate of 11.56% [4] - The net profit attributable to shareholders was 3.4 billion RMB, reflecting a decline of 23.09% [4] - The adjusted net profit was 4.7 billion RMB, down 4.6% year-on-year [2] Revenue Breakdown - COVID-related revenue was 530 million RMB, down 83.9%, while non-COVID revenue was 16.51 billion RMB, up 37.7% [2] - Revenue from preclinical, clinical early (Phase I, II), clinical III, and commercialization stages were 5.4 billion, 3.62 billion, and 7.73 billion RMB respectively, with significant growth in clinical III and commercialization [2] Project Development - The number of new projects added in 2023 was 132, with a strong recovery in the second half of the year [2] - The company aims to increase the target for new projects in 2024 from 80 to 110 [2] Capacity and Operations - The Singapore CRDMO center will provide integrated research, development, and production services, with a planned capacity of 120,000 liters [3] - The Irish base is expected to reach breakeven in 2024, with significant commercial production demand anticipated from 2025 [3] Profit Forecast - The company forecasts net profits of 3.81 billion, 4.5 billion, and 5.29 billion RMB for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.90, 1.06, and 1.24 RMB [4][9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5] Core Views - The company achieved a revenue of 17.03 billion CNY in 2023, representing a year-on-year growth of 11.6%. Non-COVID project revenue was 16.51 billion CNY, showing a significant increase of 37.7% year-on-year. However, the net profit attributable to shareholders decreased by 23.1% to 3.4 billion CNY, while the adjusted net profit fell by 4.6% to 4.7 billion CNY [2][3] Summary by Sections Revenue Growth - Non-COVID revenue growth was robust, with a total of 16.51 billion CNY, up 37.7% year-on-year. COVID-related revenue was 0.53 billion CNY. Revenue from IND preclinical projects grew by 9.2% to 5.4 billion CNY, early clinical development revenue increased by 12.7% to 3.62 billion CNY, and late-stage clinical and commercial production revenue rose by 12.8% to 7.73 billion CNY. Notably, non-COVID Phase III and commercial revenue increased by 101.7% year-on-year. As of the end of 2023, the company had a total of 698 projects, with a backlog of 20.592 billion USD in unfulfilled orders, ensuring sustainable growth [2][3] Capacity Expansion - The company is advancing its global dual-plant strategy with new production capacities coming online. The Singapore integrated CRDMO center is under construction with a planned capacity of 120,000 liters. The Ireland MFG6 has completed its first PPQ production, and MFG7 has successfully produced 16,000 liters, with five PPQ projects expected in 2024. The German MFG19 will expand its raw material capacity to 24,000 liters, and the US MFG11 will increase its capacity to 36,000 liters, expected to be operational by 2025. The Hebei MFG8 has completed six batches of production in 2023, with the first PPQ expected in 2024 [3] Profit Forecast and Valuation - The company is projected to achieve revenues of 17.91 billion CNY, 20.83 billion CNY, and 24.16 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of 5%, 16%, and 16%. The net profit attributable to shareholders is expected to be 3.61 billion CNY, 4.32 billion CNY, and 5.02 billion CNY for the same years, with growth rates of 6%, 20%, and 16%. The corresponding PE ratios are estimated at 15.6x, 13.0x, and 11.2x [3][6]

交银国际研究 公司更新 医药 收盘价 目标价 潜在涨幅 2024年3月27日 港元13.56 港元16.20↓ +19.5% 药明生物 (2269 HK) FY23 符合预期但 FY24 指引下调，外部不确定性仍较高，下调目标价 个股评级  FY23 业绩符合预期，核心业务强势增长，欧洲表现亮眼：2023 年收入 170.34亿元（+11.6% YoY；人民币，下同），符合我们预期及管理层此前 中性 指引；其中非新冠收入继续录得+37.7%的强劲增长。经调整净利润46.99 亿元（-4.6%），均符合我们预期。毛利率下滑 约4ppts，新增产能对毛利 率有6ppts的负面影响（去年海外产能整体亏损2亿美元），WPS运营效 1年股价表现 率提升带来2ppts正面影响。截至2023年末，综合项目数698个，其中 2269 HK 恒生指数 IND 前项目 339 个、临床 I 期/II 期/III 期项目 203/81/51 个、商业化项目 20% 10% 24个（vs. 2022年末17个），全年新增132个项目，创历史新高。未完 0% 成服务订单 133.98 亿美元（-1.0% YoY），未完成潜在里程碑付 ...

2024年3月28日 公司研究 商业化生产持续扩张，综合项目数稳步提升 ——药明生物（2269.HK）2023 年年报点评 要点 H 股：买入（维持） 当 前价：13.76港元 事件：公司发布2023年业绩公告，实现收入170.3亿元（YOY+11.6%）；实现 归母净利润34.0亿元（YOY-23.1%），实现经调整纯利49.5亿元（YOY-2.0%）， 符合预期。 作者 分析师：叶思奥 点评： 执业证书编号：S0930523050003 021-52523837 非新冠业务稳健增长，欧洲业务快速扩张。23年尽管受多重因素影响导致公司 yesa@ebscn.com 收入增速较往期有所下滑，但非新冠业务收入保持稳健增长，同比增长37.7% 至165.1亿元。公司新增项目数从23年二季度开始恢复，四个季度分别新增 市场数据 8/38/15/71个项目。按地区划分非新冠业务发展情况，北美/欧洲/中国/其他地 总股本(亿股) 42.58 区分别实现收入同比增长20.2%/+172.4%/-1.2%/+37.7%。欧洲成为公司收入 总市值(亿港元)： 585.94 保持稳健增长的主要贡献地。 一年最低/最高 (港元) ...

Investment Rating - The report maintains a "Buy" rating for WuXi Biologics (2269.HK) [2] Core Views - WuXi Biologics achieved a revenue of 17.03 billion RMB in 2023, representing a year-on-year growth of 11.6%, with non-COVID project revenue growing by 37.7%. However, the net profit attributable to shareholders decreased by 23.1% to 3.4 billion RMB, while adjusted net profit fell by 4.6% to 4.7 billion RMB [1][2] - The company signed a record 132 new projects in 2023, with a total pipeline of 698 projects, marking an 18.7% increase year-on-year. Revenue from late-stage clinical and commercialization grew steadily, with significant contributions from non-COVID projects [1] - The company is expanding its global production capacity, with capital expenditures of 4.1 billion RMB in 2023, expected to rise to 5 billion RMB in 2024. New facilities in Singapore, Ireland, Germany, and the USA are set to enhance production capabilities [1] - As of the end of 2023, the company had an order backlog of 20.59 billion USD, with unfulfilled orders growing to 3.85 billion USD, supporting revenue growth expectations [1] - The company forecasts a revenue growth of 5%-10% for 2024, with non-COVID revenue growth projected at 8%-14% [1] Summary by Sections Financial Performance - In 2023, WuXi Biologics reported total revenue of 17,034 million RMB, with a growth rate of 11.6%. The projected revenue for 2024 is 18,355 million RMB, with a growth rate of 7.8% [2] - The net profit for 2023 was 3,400 million RMB, down 23.1%, with an expected recovery to 3,813 million RMB in 2024, reflecting a growth rate of 12.2% [2] - Earnings per share (EPS) for 2023 was 0.80 RMB, projected to increase to 0.90 RMB in 2024 [2] Project and Capacity Expansion - The company has initiated construction of a CRDMO base in Singapore, with a planned capacity of 120,000 liters, and is expanding facilities in Ireland, Germany, and the USA to meet growing demand [1] - The rapid ramp-up of production capacity is expected to support the company's long-term growth strategy [1] Market Outlook - The report indicates a positive outlook for the biotechnology investment landscape, with signs of recovery in project signings and a robust pipeline of late-stage projects [1] - The anticipated contributions from commercialization projects are expected to provide significant revenue in the coming years [1]

Investment Rating - Maintain BUY rating for WuXi Biologics with a target price of HK$18.32, down from HK$39.65, reflecting geopolitical uncertainties [2][3]. Core Insights - WuXi Biologics reported 2023 revenue of RMB17.03 billion, an increase of 11.6% year-over-year, while attributable net income decreased by 23.1% to RMB3.40 billion [2]. - Excluding COVID-related revenue, total revenue would have increased by 37.7% year-over-year, with late-stage and CMO project revenue surging by 101.7% [2]. - The company anticipates total revenue growth of 5-10% year-over-year and non-COVID revenue growth of 8-14% for 2024 [2]. - The backlog stood at US$20.59 billion at the end of 2023, with a 6.4% year-over-year increase in backlog within three years [2]. Revenue and Profitability - Revenue from the European market grew by 101.9% year-over-year, contributing 30.2% to total revenue, indicating a strong demand from clients [2][3]. - Non-COVID revenue from Europe, North America, and other regions (excluding China) grew by 172.4%, 20.2%, and 37.7% year-over-year, respectively [2]. - Non-COVID revenue in China slightly declined by 1.2% year-over-year due to biotech funding constraints [2]. Financial Projections - Revenue projections for 2024E, 2025E, and 2026E are RMB17.91 billion, RMB20.35 billion, and RMB23.19 billion, respectively, with year-over-year growth rates of 5.2%, 13.6%, and 13.9% [3][7]. - Adjusted net profit is expected to increase to RMB5.05 billion, RMB5.78 billion, and RMB6.59 billion for 2024E, 2025E, and 2026E, with growth rates of 7.5%, 14.5%, and 13.9% [3][7]. Share Buyback - WuXi Biologics initiated a share repurchase plan valued at up to US$600 million, with 34.8 million H-shares repurchased by the end of 2023 [2][3]. - The company has the capacity to repurchase shares valued at approximately US$346 million, representing about 4.6% of its latest market capitalization [2].