Ge Long Hui·2025-07-29 10:51Core Viewpoint - WuXi AppTec (2359.HK) reported better-than-expected performance in the first half of the year, with revenue reaching 20.8 billion yuan, a year-on-year increase of 20.6% [1] - Net profit increased by 102% year-on-year to 8.6 billion yuan, while recurring net profit, excluding a one-time gain of 3.3 billion yuan from the sale of WuXi AppTec's stake, grew by 26.5% to 5.9 billion yuan [1] Financial Performance - Revenue for the first half of the year was 20.8 billion yuan, reflecting a 20.6% year-on-year growth [1] - Net profit surged by 102% year-on-year to 8.6 billion yuan [1] - Recurring net profit increased by 26.5% to 5.9 billion yuan when excluding one-time gains [1] Guidance and Projections - Management raised the full-year revenue guidance by 2% to a range of 42.5 billion to 43.5 billion yuan [1] - Free cash flow guidance was increased by 22% to a range of 5 billion to 6 billion yuan [1] - Capital expenditure budget remains unchanged at 7 billion to 8 billion yuan [1] Business Segments - TIDES business revenue grew by 142% year-on-year to 5 billion yuan, driven by GLP-1 raw material drugs, exceeding the annual growth target of 60% [1] - The second quarter gross margin reached a new high of 46.9%, attributed to improved production efficiency in the chemical business and an increase in later-stage projects [1] - However, only 8 new commercialization and phase III projects were added in the first half, and the China business experienced a year-on-year decline of 5% [1] Analyst Rating - The firm reiterated an outperform rating with a target price of 116 HKD [1]