Mei Ri Jing Ji Xin Wen·2025-05-12 09:38Core Viewpoint - The biopharmaceutical industry faces significant uncertainties in 2025, including tariffs, FDA layoffs, and patent expirations, yet opportunities exist amidst these challenges. WuXi AppTec demonstrates resilience with strong financial performance, indicating its ability to navigate uncertainties effectively [1][2]. Financial Performance - WuXi AppTec reported a total revenue of 9.655 billion yuan, a year-on-year increase of 21.0% [2] - Adjusted non-IFRS net profit reached 2.68 billion yuan, reflecting a 40% year-on-year growth, with a non-IFRS net profit margin of 27.7% [2][3] - The company's order backlog increased to 52.33 billion yuan, a 47.1% year-on-year rise, showcasing client confidence in its services [2][3] Market Position and Strategy - WuXi AppTec achieved revenue growth of 28.4% in the US and 26.2% in Europe, surpassing 2024 levels, indicating strong competitiveness in developed markets [3] - The company maintains its annual performance guidance, expecting a revenue growth of 10% to 15% for 2025, targeting total revenue between 41.5 billion and 43 billion yuan [3][4] - Morgan Stanley and Goldman Sachs have raised profit forecasts for WuXi AppTec, reflecting better-than-expected performance in TIDES and small molecule R&D [4] Business Model and Operational Strength - The "CRDMO" model has proven its value, allowing WuXi AppTec to cover the entire drug development chain efficiently, which is crucial in a volatile environment [5][6] - The company has expanded its peptide production capacity significantly, with plans to increase the total volume of solid-phase synthesis reactors to over 100,000 liters by the end of 2025 [8][9] - WuXi AppTec's TIDES business generated 2.24 billion yuan in Q1 2025, a remarkable 187.6% increase year-on-year, with a backlog growth of 105.5% [7][8] Shareholder Returns and Capital Management - WuXi AppTec has returned over 11.3 billion yuan to shareholders in the past three years, with more than 70% of free cash flow directed towards investor returns [9][10] - The company has initiated multiple share buyback programs, totaling 3 billion yuan, reflecting strong management and strategic choices [10]