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].

证券研究报告 | 年报点评报告 2024年03月27日 药明生物（02269.HK） 业绩稳健符合预期，新增项目数逐季恢复，持续增长可期 公司发布 2023年年度报告。2023年公司实现收入170.3亿元，同比增长 买入（维持） 11.6%；实现归母净利润 34.0亿元，同比降低 23.1%，归母经调整净利润 股票信息 47.0亿元，同比下降4.6%。 行业 生物技术 公司收入利润符合预期，非新冠收入保持快速增长，尤其后期商业化项目。 前次评级 买入 公司 2023 全年收入同比+11.6%符合预期，其中非新冠项目收入同比约 +37.7%，其中非新冠后期与商业化的非新冠项目收入同比+101.7%。分阶 3月26日收盘价(港元) 13.56 段看，临床前期/临床 I 期与 II 期/临床 III 期与商业化分别实现收入同比 总市值(百万港元) 57,742.73 +9.2%/+12.7%/+12.8%，随着欧美生物技术融资触底反弹，临床前收入增 总股本(百万股) 4,258.31 长有望逐步恢复。分地区看，北美/欧洲/中国/其他地区分别实现收入同比 其中自由流通股(%) 100.00 -5.0%/+101.9% ...

Financial Performance - The company's revenue for the year ended December 31, 2023, reached RMB 17,034.3 million, representing an 11.6% increase compared to RMB 15,268.7 million in 2022[2]. - Gross profit increased by 1.5% to RMB 6,827.9 million, with a gross margin of 40.1%, down from 44.0% in the previous year[2]. - Net profit attributable to shareholders decreased by 23.1% to RMB 3,399.7 million, with a net profit margin of 21.0%, down from 29.8%[2]. - The group's total revenue for the year ended December 31, 2023, was approximately RMB 17,034.3 million, an increase of 11.6% from RMB 15,268.7 million in the previous year[22]. - Adjusted net profit for 2023 was RMB 4,950.4 million, a decrease of 2.0% from RMB 5,053.9 million in 2022[59]. - Adjusted net profit margin decreased to 29.1% in 2023 from 33.1% in 2022[59]. - Basic adjusted earnings per share for 2023 was RMB 1.13, down from RMB 1.18 in 2022[59]. - The company reported a net profit of RMB 3,570.6 million for the year, down from RMB 4,549.9 million, reflecting a decrease of 21.5%[75]. - The basic earnings per share for the year was RMB 0.82, down from RMB 1.06 in the previous year[75]. Revenue Breakdown - Non-COVID revenue surged by 37.7%, while revenue from late-stage and commercial production projects skyrocketed by 101.7%[5]. - North America contributed RMB 8,073.5 million (47.4% of total revenue), showing a decrease of 5.0% compared to RMB 8,496.4 million (55.6% of total revenue) in the previous year[20]. - Europe saw a significant increase in revenue, rising by 101.9% to RMB 5,140.8 million (30.2% of total revenue) from RMB 2,546.2 million (16.7% of total revenue) in the previous year[20]. - Revenue from China decreased by 16.1%, amounting to RMB 3,121.5 million (18.3% of total revenue) compared to RMB 3,719.0 million (24.4% of total revenue) in the previous year[20]. - Revenue from the top five customers increased by 29.5% to approximately RMB 6,059.7 million, accounting for 35.6% of total revenue[23]. - Revenue from the top ten customers grew by 22.8% to approximately RMB 7,660.4 million, representing 45.0% of total revenue[23]. Operational Highlights - The number of ongoing integrated projects increased from 588 to 698, including 132 new projects, marking a record for non-COVID projects[3]. - The number of commercial production projects rose from 17 to 24, with nine new late-stage clinical and commercial production projects added[3]. - The proprietary bispecific antibody platform WuXiBodyTM has established 45 collaborations, showcasing the company's leadership in antibody development[6]. - The company has empowered 110 INDs during the reporting period, aiming to bring more high-quality and affordable biopharmaceuticals to global patients[8]. - The WuXiaTM platform has delivered over 800 cell lines, including five commercialized products, and can empower 150 integrated CMC projects annually[8]. - The WuXiUPTM platform can achieve batch yields equivalent to 10,000 to 20,000 liters of traditional stainless steel reactors using 1,000 to 2,000 liter single-use bioreactors[8]. - The company has achieved a process performance confirmation success rate of over 97%, indicating one of the best performances in the industry[10]. - The number of projects for the vaccine business platform has increased to 59, including 25 integrated projects, demonstrating the company's capabilities and scale[11]. Investments and Future Plans - The company plans to allocate RMB 4,359.6 million (40% of total funds) for additional production capacity across various technology platforms by the end of 2024[67]. - Investment in mRNA-related technology is projected at RMB 1,089.9 million, accounting for 10% of the total funds, with a timeline extending to the end of 2024[67]. - The company plans to continue expanding its CRDMO services and enhance its biopharmaceutical offerings to capture a larger market share in the coming years[84]. Cost and Expenses - R&D expenses increased by 15.1% to approximately RMB 785.8 million, reflecting continued investment in innovation and technology[33]. - Selling and marketing expenses grew by 80.5% to approximately RMB 294.0 million, representing 1.7% of total revenue[31]. - The total operating expenses, including sales and marketing, administrative, and R&D expenses, amounted to RMB 2,831.8 million, compared to RMB 2,115.3 million in the previous year, marking an increase of 33.8%[74]. - Employee costs for 2023 were approximately RMB 4,486.6 million, an increase of 11.1% from RMB 4,036.2 million in 2022[61]. Assets and Liabilities - Property, plant, and equipment increased by 13.3% from approximately RMB 24,171 million to approximately RMB 27,378 million, attributed to ongoing investments in facility construction[39]. - The total cash and bank balances, including time deposits, rose by 49.4% from approximately RMB 6,699.7 million as of December 31, 2022, to approximately RMB 10,009.8 million as of December 31, 2023, primarily due to net proceeds of approximately RMB 3,604.0 million from the independent listing of WuXi AppTec[52]. - The total borrowings decreased by 22.8% from approximately RMB 2,783.0 million as of December 31, 2022, to approximately RMB 2,147.4 million as of December 31, 2023, mainly due to the repayment of bank loans during the reporting period[54]. - The company's net assets increased to RMB 44,017,882 thousand in 2023, compared to RMB 36,213,077 thousand in 2022, indicating a growth of 21.1%[77]. Compliance and Governance - The company adheres to Good Manufacturing Practice (GMP) standards[114]. - The company operates in compliance with the International Financial Reporting Standards (IFRS)[114]. - The company has a compensation committee under the board of directors[114]. - The company is subject to regulations from the European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA)[114].

2024 年3 月6 日 医药: 超配 证券研究报告 / 公司更新报告 药明生物 (2269 HK, 买入, 目标价: HK$29.09) 2023 年盈利或受公允价值变动损失所拖累 目标价: HK$29.09 当前股价: HK$19.94 • 生物安全法案短期内应该难以落地，但日益加剧的中美地缘冲突或将中长期压制相关 股价上行/下行空间 +46% 公司估值。 52周最高/最低价 (HK$) 58.15/14.70 市值 (US$mn) 3,131 • 2023 年和2024 年前两个月，恒指生物医药和纳斯达克生物医药指数皆跑输大盘。 当前发行数量(百万股) 1,228 • 下调DCF（WACC：9.9%）目标价至29.09 港币，维持买入。 三个月平均日交易額 163 (US$mn) 流通盘占比 (%) 100 生物安全法案短期内应该难以落地：2024 年1 月26 日，美国议员Mike Gallagher 向美 主要股东 (%) 国众议院提交了生物安全法案（BIOSECURE Act）草案版本，本条例旨在禁止与某些生物 WuXi Biologics Holdings 14 技术供应商签订合约。文件中提到了 ...