Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 90 and RMB 93, indicating a potential upside of +38% and +45% respectively [3][5][9]. Core Insights - The acceleration in new order signings, along with an additional special dividend and A-share buyback, are the major positive surprises that have driven the company's stock price up [3][8]. - For 2024, the company achieved a revenue of RMB 39.24 billion, a decrease of 2.7% YoY, but a growth of 5.2% YoY when excluding COVID-19 commercialization projects [8][10]. - The company reported a Non-IFRS adjusted net profit of RMB 10.58 billion for 2024, down 2.5% YoY, with a net profit margin of 27% [8][10]. Revenue and Growth Drivers - The small molecule D&M revenue and TIDES business remain the main drivers of revenue growth, with TIDES revenue growing by 67.9% YoY and small molecule D&M revenue increasing by 16.1% YoY [3][8]. - The company expects TIDES business to maintain over 60% YoY revenue growth in 2025, with total revenue projected to reach RMB 41.5-43 billion, representing a 10%-15% YoY increase [8][9]. Financial Performance - In Q4 2024, the company achieved a revenue of RMB 11.54 billion, a 6.9% increase YoY, and a Non-IFRS adjusted net profit of RMB 3.24 billion, up 20.4% YoY [10][12]. - The company ended 2024 with a backlog of orders amounting to RMB 49.31 billion, a 47% increase YoY, indicating strong execution and international competitiveness [8][10]. Shareholder Returns - The company plans to distribute an additional special dividend of RMB 1 billion and conduct a RMB 1 billion A-share buyback in 2025, which is expected to positively impact stock performance [8][9]. - The management also announced a H-share incentive trust plan for 2025, with an allocation of HKD 1.5-2.5 billion, depending on revenue targets [8][9].

Summary of WuXi AppTec Conference Call Company Overview - **Company**: WuXi AppTec - **Year**: 2024 - **Industry**: Pharmaceutical and Biotechnology Services Key Financial Performance - **2024 Revenue**: 39.24 billion RMB, a 5.2% increase year-over-year after excluding COVID-19 commercialization projects [3][4] - **Fourth Quarter Revenue**: 11.54 billion RMB, a 6.9% year-over-year increase [3] - **Adjusted Non-IFRS Net Profit**: 10.58 billion RMB, a 2.5% decrease year-over-year, but net profit margin increased to 27%, a historical high [4][12] - **Total Orders**: 49.31 billion RMB, a 47% increase year-over-year, indicating strong future revenue potential [4][5] Client and Market Dynamics - **Active Clients**: Approximately 6,000, with 5,500 in ongoing operations, a decrease of 500 due to the termination of certain ATU and medical testing businesses [5] - **Top 20 Global Pharmaceutical Clients**: Revenue increased by 24.1%, with U.S. and European revenues growing by 7.7% and 14.4%, respectively; however, revenues in China and Japan/Korea declined [6] Capacity Expansion and Investment - **Capacity Expansion**: By the end of 2025, small molecule API reactor volume is expected to exceed 4 million liters, and peptide solid-phase synthesis reactor volume is projected to exceed 100,000 liters [4][7] - **Capital Expenditure**: Expected to be between 7 billion to 8 billion RMB in 2025, with a focus on expanding domestic and international DNA capacity [18][38] Business Segments Performance - **Wuxi Chemical Services**: Revenue of 29.05 billion RMB, an 11.2% increase year-over-year after excluding COVID-19 projects, with an adjusted IFS gross margin of 46.4% [4][9] - **Testing Services**: Revenue decreased by 34.8% to 5.67 billion RMB, with a gross margin decline to 33.3% [10] - **CRO and SMO**: Continued to lead in clinical trials, with significant contributions to new drug approvals [11] Strategic Initiatives - **Sustainability Achievements**: Recognition from global institutions, including a 3A MSCI rating and inclusion in the Dow Jones Sustainability Index [8] - **AI and Digitalization**: Ongoing integration of AI and digital technologies to enhance operational efficiency and insights [25] Future Outlook - **2025 Revenue Guidance**: Expected growth of 10% to 15%, with overall revenue projected to reach between 41.5 billion to 43 billion RMB [4][14] - **Dividend Policy**: The board has decided to maintain a 30% annual dividend payout ratio and issue a one-time special cash dividend of 1 billion RMB [4][14] Risks and Challenges - **Market Fluctuations**: Revenue from China and Japan/Korea markets has seen declines, with recovery expected to take time [40][41] - **Impact of Tariffs**: Uncertainty regarding the impact of tariffs on business and profit margins, with ongoing monitoring of legislative developments [22][36] Conclusion WuXi AppTec demonstrated solid financial performance in 2024, with significant growth in orders and a strong outlook for 2025. The company is actively expanding its capacity and investing in sustainable practices while navigating challenges in certain markets.

Core Viewpoint - The Hong Kong stock market showed strong performance, with the Hang Seng Index rising 2.46% to a three-year high, driven by robust earnings in technology stocks, signs of economic stabilization, and positive policy expectations [1] Group 1: Market Performance - The Hang Seng Index closed at 24,740.57 points, up 595 points, with a total trading volume of 285.935 billion HKD [1] - The Hang Seng Tech Index increased by 3.96%, closing at 6,105.5 points, while the Hang Seng China Enterprises Index rose by 2.79% to 9,177.8 points [1] Group 2: Blue-Chip Stocks - Baidu Group-SW led blue-chip stocks with a 12.22% increase, closing at 103.3 HKD, contributing 15.93 points to the Hang Seng Index [2] - WuXi AppTec (药明康德) rose by 10.54% to 72.35 HKD, contributing 4.07 points to the index [2] - Other notable performers included Li Auto-W, which increased by 6.76%, and China Longjian Infrastructure, which fell by 2.93% [2] Group 3: Sector Highlights - Large technology stocks performed well, with Baidu up 12%, Alibaba and JD both rising over 5% [3] - AI concept stocks saw strong gains, with Baidu Group-SW up 12.22%, Kingsoft Cloud up 10.86%, and Alibaba-W up 5.83% [3] - The CRO sector also performed well, with WuXi AppTec up 10.54% and other CRO stocks showing significant increases [5] Group 4: Gold Stocks - Gold stocks collectively rose as international gold prices reached new highs, with Lingbao Gold up 7.3% and Shandong Gold up 6.99% [7] - UBS forecasts gold prices could reach 3,200 USD per ounce in the next four quarters, with Macquarie analysts predicting a potential peak of 3,500 USD per ounce by Q3 [7] Group 5: Robotics Sector - The robotics sector saw significant gains, with Yujian Technology up 27.88% after launching a humanoid robot [8] - Midea Group also reported advancements in humanoid robot development, indicating a push towards commercialization [8] Group 6: Notable Stock Movements - CanSino Biologics surged 25.26% after receiving breakthrough therapy designation for a new drug [9] - Hillstone Networks reported a 28.89% increase in revenue, with a 240.67% rise in net profit [10] - NIO-SW rose 8.95% following a strategic partnership with CATL to enhance battery swap services [11]

Core Viewpoint - WuXi AppTec's stock price surged following the announcement of its revenue growth forecast for 2024, driven by the expansion of the obesity drug market and the implications of U.S. tariff policies [2][4]. Group 1: Revenue Growth and Business Expansion - WuXi AppTec expects its overall revenue to reach between 41.5 billion to 43 billion yuan in 2024, surpassing the revenue peak driven by COVID-19 commercialization in 2023 [2]. - The TIDES (oligonucleotide and peptide) business has become a new revenue growth engine, with projected revenue of 5.8 billion yuan in 2024, representing a year-on-year increase of 70.1% [2]. - By the end of 2024, TIDES' order backlog is expected to grow by 103.9% year-on-year [2]. Group 2: Market Demand and Production Capacity - The TIDES business is involved in the contract manufacturing of GLP-1 drugs, which have seen significant success in the obesity treatment sector, attracting investments from major pharmaceutical companies [3]. - WuXi AppTec holds over 20 GLP-1 projects, capturing more than 20% of the market share, indicating strong future demand for production capacity [3]. - The company is expanding its production capacity, with the total volume of peptide solid-phase synthesis reactors expected to increase to 41,000 liters by the end of 2024 and over 100,000 liters by the end of 2025 [2]. Group 3: U.S. Market and Policy Implications - The U.S. market is the largest revenue source for WuXi AppTec, contributing 25.02 billion yuan, which accounts for approximately 64% of the company's total revenue [4]. - The management acknowledged the uncertainty surrounding U.S. tariff policies and stated that the specific impact on the company's business remains unclear and will require further observation [4]. - Regarding the U.S. Biologics Act, the management noted that there have been no recent proposals related to this legislation and that the company will continue to monitor legislative developments closely [4].

Company and Industry Summary Company: WuXi AppTec (药明康德) Key Financial Performance - **2024 Revenue**: Achieved revenue of 39.241 billion RMB, a year-over-year (YOY) decrease of 2.73%. Excluding COVID-19 commercialization projects, revenue increased by 5.2% [1] - **Adjusted Non-IFRS Net Profit**: Reported at 10.58 billion RMB, a YOY decrease of 2.5%. The adjusted Non-IFRS net profit margin reached 27%, an increase of 0.1 percentage points YOY [1] - **Q4 2024 Performance**: Revenue for Q4 was 11.54 billion RMB, a YOY increase of 6.85%. Adjusted net profit for Q4 was 3.24 billion RMB, a YOY increase of 20% [1] Order and Growth Insights - **Order Backlog**: The company reported an order backlog of 49.31 billion RMB for 2024, representing a YOY increase of 47.0%. For Q1-Q3 2024, the order backlog increased by 35.2% YOY, exceeding expectations despite a high base [1] Future Guidance - **2025 Revenue Projection**: The company expects revenue from continuing operations to return to double-digit growth, projecting a YOY increase of 10%-15%, with overall revenue reaching between 41.5 billion and 43 billion RMB [2] - **Net Profit Margin Outlook**: Anticipated further improvement in adjusted Non-IFRS net profit margin for 2025 [2] Capital Expenditure and Shareholder Returns - **Capital Expenditure**: Plans to accelerate global D&M capacity construction, with capital expenditure expected to reach 7-8 billion RMB in 2025, doubling the D&M capital expenditure [2] - **Dividends**: The company intends to maintain a 30% annual cash dividend ratio (~2.84 billion RMB) and plans to issue an additional one-time special dividend of 1 billion RMB. There are also plans to increase mid-term dividends in 2025 and potentially repurchase 1 billion RMB of A-shares [2] Incentive Plans - **H-share Incentive Program**: A proposed H-share incentive trust plan for 2025, granting 1.5 billion HKD in H-shares upon achieving 42 billion RMB in revenue, with an additional 1 billion HKD for revenues of 43 billion RMB or more. The H-shares will be purchased in the market at current prices, avoiding dilution of existing shareholder equity [2] Business Segment Performance - **D&M Business Growth**: Strong drivers from TIDES, with significant growth in small molecule D&M commercialization. Q4 2024 revenue from the chemical business increased by 13.0%, with total revenue for 2024 at 29.05 billion RMB, excluding COVID-19 projects, reflecting an 11.2% YOY increase [2] - **Pipeline Development**: As of the end of 2024, the small molecule D&M pipeline includes 72 commercial projects (an increase of 11) and 80 Phase III clinical projects (an increase of 14), indicating a strengthening funnel effect [3] Conclusion The company demonstrates robust order growth and a positive outlook for revenue and profitability in the coming years, supported by strategic capital investments and shareholder-friendly initiatives. The small molecule D&M segment is expected to continue its strong performance, contributing to overall growth.

Core Insights - WuXi AppTec reported a net profit attributable to shareholders of 9.353 billion RMB for the fiscal year ending December 31, 2024, with basic earnings per share of 3.24 RMB [1] - The company generated total revenue of 39.241 billion RMB, with a gross profit of 16.016 billion RMB [1] Revenue Breakdown - Revenue from the top 20 global pharmaceutical companies reached 16.64 billion RMB, with a year-on-year growth of 24.1% after excluding COVID-19 commercialization projects [1] - Revenue from U.S. clients amounted to 25.02 billion RMB, with a year-on-year growth of 7.7% after excluding COVID-19 commercialization projects [2] - Revenue from European clients was 5.23 billion RMB, reflecting a year-on-year increase of 14.4% [2] - Revenue from Chinese clients was 7.07 billion RMB, showing a year-on-year decline of 3.5% [2] - Revenue from other regions totaled 1.9 billion RMB [2] Client Activity - As of the end of 2024, the company had approximately 6,000 active clients, with about 5,500 in ongoing operations and 1,000 new clients added during the year [1] Future Outlook - The company anticipates a return to double-digit growth in its ongoing operations for 2025, projecting a revenue increase of 10% to 15%, with overall revenue expected to reach between 41.5 billion and 43 billion RMB [2] - The company will continue to focus on its CRDMO core business while gradually increasing production capacity [2]

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之內容概不負責，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 因依賴該等內容而引致之任何損失承擔任何責任。 WUXI APPTEC CO., LTD. * 無錫藥明康德新藥開發股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2359） 海外監管公告 本海外監管公告乃由本公司根據香港聯合交易所有限公司證券上市規則第 13.10B條作出。 李革博士 香港，2025年3月17日 截至本公告日期，本公司董事會包括執行董事李革博士、陳民章博士、胡正國先生、楊青博士及 張朝暉先生；非執行董事童小幪先生及吳亦兵博士；以及獨立非執行董事盧韶華女士、俞衛博士、 張新博士、詹智玲女士及冷雪松先生。 * 僅供識別 无锡药明康德新药开发股份有限公司董事会 对公司独立董事独立性情况的专项意见 根据《上市公司独立董事管理办法》《上海证券交易所上市公司自律监管指 引第 1 号——规范运作》等法律法规及《无锡药明康德新药开发股份有限公司章 程》（以下简称"《公司章程》"）的相关规定，无锡药明康德新药开发股份有限公 司（ ...

WUXI APPTEC CO., LTD. * 無錫藥明康德新藥開發股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2359） 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之內容概不負責，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 因依賴該等內容而引致之任何損失承擔任何責任。 海外監管公告 本海外監管公告乃由本公司根據香港聯合交易所有限公司證券上市規則第 13.10B條作出。 承董事會命 無錫藥明康德新藥開發股份有限公司 董事長 李革博士 香港，2025年3月17日 截至本公告日期，本公司董事會包括執行董事李革博士、陳民章博士、胡正國先生、楊青博士及 張朝暉先生；非執行董事童小幪先生及吳亦兵博士；以及獨立非執行董事盧韶華女士、俞衛博士、 張新博士、詹智玲女士及冷雪松先生。 * 僅供識別 关于无锡药明康德新药开发股份有限公司 会计政策变更的专项说明 德师报(函)字(25)第Q00302号 茲載列本公司在上海證券交易所網站刊登的以下資料中文全文，僅供參閱。 无锡药明康德新药开发股份有限公司全体股东： 根据上海证券交易所《上市公司日常 ...

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之內容概不負責，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 因依賴該等內容而引致之任何損失承擔任何責任。 WUXI APPTEC CO., LTD. * 無錫藥明康德新藥開發股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2359） 海外監管公告 本海外監管公告乃由本公司根據香港聯合交易所有限公司證券上市規則第 13.10B條作出。 承董事會命 無錫藥明康德新藥開發股份有限公司 董事長 李革博士 香港，2025年3月17日 截至本公告日期，本公司董事會包括執行董事李革博士、陳民章博士、胡正國先生、楊青博士及 張朝暉先生；非執行董事童小幪先生及吳亦兵博士；以及獨立非執行董事盧韶華女士、俞衛博士、 張新博士、詹智玲女士及冷雪松先生。 * 僅供識別 茲載列本公司在上海證券交易所網站刊登的以下資料中文全文，僅供參閱。 无锡药明康德新药开发股份有限公司 董事会审计委员会对会计师事务所 2024 年度履职情况评估及 履行监督职责情况的报告 根据《上市公司治理准则》《国有企业、上市公司选聘会计师事务 ...