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].

Core Viewpoint - WuXi Biologics reported a revenue of 18.675 billion yuan for 2024, a year-on-year increase of 9.6%, but the net profit decreased by 1.3% to 3.356 billion yuan, marking the second consecutive year of profit decline after a 21.5% drop in 2023 [1][2] Revenue Performance - Revenue growth rates for WuXi Biologics from 2022 to 2024 were 71.6%, 11.6%, and 9.6%, indicating a significant slowdown [2] - Non-COVID business revenue grew by 13.1% in 2024, a sharp decline from 37.7% in 2023, reflecting structural adjustments in global biopharmaceutical R&D demand [2] - North American market revenue surged by 32.5% to 10.696 billion yuan, accounting for 57.3% of total revenue, while European and Chinese revenues fell by 15.9% and 9.6%, respectively [2] Profitability and Cost Structure - The net profit margin decreased from 25.9% in 2022 to 18% in 2024, with net profit declining by 21.5% in 2023 and 1.3% in 2024 [2] - Sales and marketing expenses increased by 61.1% to 474 million yuan, while administrative expenses rose by 11.9% to 1.674 billion yuan [2] - R&D expenses were reduced by 2.5% to 766 million yuan, showcasing flexibility in cost control [2] R&D Pipeline - The total number of projects reached 817, with 151 new projects added in 2024, over half of which are from U.S. clients [3] - The company secured 20 external projects through its "Win Molecular" strategy, including 13 late-stage clinical and commercial production projects [3] - ADC (Antibody-Drug Conjugates) revenue reached 3.944 billion yuan, accounting for 21.1% of total revenue, with a significant increase in the number of completed PPQ projects [3] Order Backlog and Market Position - The total amount of unfulfilled orders decreased by 11% to 18.5 billion USD, primarily due to the removal of 3 billion USD in orders from the sale of an Irish vaccine plant [4] - The company established a research service center in Boston to enhance North American market capabilities, while its Irish and Suzhou facilities focus on high-value products [4] - Despite short-term profit pressures and geopolitical disturbances, the company demonstrates resilience through its 817 ongoing projects and a robust order backlog [4][5]

业绩预期乐观却遭资本"用脚投票"！药明生物股价跳水 昨日晚间，药明生物发布2024年业绩公告。数据显示，公司去年收入、纯利双增，XDC业务实现翻倍，但股东应占纯 利微降，中国区收入也出现下滑。 今日开盘药明生物一度跌近6%，截止发稿跌幅收窄至3.51%至25.25港元，近5个交易日累计跌超11%。 去年营收增近一成 从业务分部来看，生物药分部依然是公司的主要收入来源，2024年收入为147.31亿元，占总收入的78.9%。而XDC分 部（专注于ADC及生物偶联药物市场）也表现出色，收入为39.44亿元，实现翻倍增长，占总收入的21.1%。 | | | 截至十二月三十一日止年度 | | | | --- | --- | --- | --- | --- | | | 二零二四年 | | 二零二三年 | | | | 人民幣 | | 人民幣 | | | 來自外部客戶的收益 | 百萬元 | % | 白岛儿 | 90 | | 生物藥 | 14,731.4 | 78.9% | 15,128.2 | 88.8% | | - XDC | 3,944.0 | 21.1% | 1.906.1 | 11.2% | | 總計 | 18,6 ...

| | | 二零二四年 | 二零二三年 | 變動 | | --- | --- | --- | --- | --- | | | | 人民幣百萬元 | 人民幣白萬元 | | | 收益 | | 18.675.4 | 17.034.3 | 9.6% | | 毛利 | | 7.650.8 | 6.827.9 | 12.1% | | 毛利率 | | 41.0% | 40.1% | | | 純利 | | 3.945.4 | 3.570.6 | 10.5% | | 純利率 | | 21.1% | 21.0% | | | 本公司擁有人應佔純利 | | 3,356.1 | 3,399.7 | (1.3%) | | 本公司擁有人應佔純利率 | | 18.0% | 20.0% | | | 本公司擁有人應佔經調整純利 | | 4.784.1 | 4.698.9 | 1.8% | | 本公司擁有人應佔經調整純利率 | | 25.6% | 27.6% | | | | | 人民幣元 | 人民幣元 | | | 每股盈利 | 一基本 | 0.82 | 0.82 | | | | 一艘薄 | 0.78 | 0.77 | 1.3% | | 經調整每股 ...

Core Viewpoint - WuXi Biologics (02269) reported strong financial performance for 2024, achieving revenue of RMB 18.68 billion, with non-COVID revenue growing by 13.1% year-on-year, indicating robust growth potential and a need for valuation recovery [1][3][10] Financial Performance - The company achieved a gross profit of RMB 7.65 billion, a 12.1% increase year-on-year, and an EBITDA of RMB 6.55 billion, up 16.7% year-on-year [1] - The compound annual growth rate (CAGR) for non-COVID revenue from 2014 to 2024 is approximately 50% [1] - The stock price increased by 47.49% year-to-date as of March 25, 2024, but remains undervalued compared to estimates from major investment banks [1][10] Market Outlook - Major investment banks, including Morgan Stanley and CICC, have upgraded their forecasts for WuXi Biologics' revenue and net profit for 2025 and 2026, with target prices set at HKD 45 and HKD 50 respectively [1] - The global CXO industry is facing challenges, with many leading companies lowering their performance guidance for 2024, yet WuXi Biologics has successfully met its performance targets [2][3] Project Growth - WuXi Biologics achieved a record total of 817 integrated projects in 2024, with 151 new projects signed, exceeding the previous expectation of 110 [4][5] - The company has a strong pipeline with 402 preclinical projects, 328 early-stage clinical projects, and 87 late-stage clinical and commercial production projects, showing significant year-on-year growth [5] Strategic Advantages - The company’s dual-factory strategy and advanced technology platforms, such as WuXiBodyTM and WuXiUITM, are expected to enhance production efficiency and reduce costs significantly [6][8] - WuXi Biologics has maintained a 100% success rate in BLA submissions, reflecting its reliable quality management system [7][8] Valuation Potential - Despite strong fundamentals, WuXi Biologics' current PE ratio of 39.56 is significantly below its five-year average of 98.85, indicating substantial upside potential [10][12] - The company’s stock buyback program, with USD 4 billion completed out of a planned USD 6 billion, has increased its net asset value per share to HKD 10.75, enhancing investment attractiveness [9]