Cai Fu Zai Xian·2025-12-02 04:50Core Viewpoint - The investment philosophy of Duan Yongping emphasizes understanding the intrinsic value of a company beyond market fluctuations, as illustrated by the recent share reduction news from WuXi AppTec [1] Group 1: Shareholder Actions - On October 29, WuXi AppTec announced a plan for its actual controller to reduce shares by up to 2% of the total share capital through centralized bidding and/or block trading [1] - The market reacted strongly to the news, despite the reduction being relatively small and regulated, indicating a growing desensitization among investors regarding the negative perception of share reductions [1] Group 2: Company Performance - Since October 30, WuXi AppTec's stock has outperformed the market, even increasing by 1.19% during the share reduction period from November 20 to 25 [2] - WuXi AppTec has established a unique business model since its founding in 2000, focusing on assisting pharmaceutical companies in lowering development barriers and accelerating new drug launches [2] Group 3: Financial Metrics - Investors who held WuXi AppTec shares since its IPO have seen a return of 12.3 times by September this year, supported by a solid business model [3] - As of the first half of this year, WuXi AppTec's ongoing business orders have achieved a compound growth rate of 38% since 2018, nearing 60 billion [3] - By the third quarter of 2025, WuXi AppTec's revenue is projected to exceed 32.857 billion, with a year-on-year growth of 18.61% and an increase in net profit margin from 26.5% to 32.1% [3] Group 4: Shareholder Returns - WuXi AppTec's expected earnings per share in 2025 will be seven times that of its IPO, with a total of 20 billion allocated for cash dividends and share buybacks over the past seven years [4] - The company has implemented a nearly 7 billion shareholder return plan for 2025, which represents 72% of the net profit for 2024 [4] - For the first three quarters of 2025, WuXi AppTec's net profit attributable to shareholders reached 12.076 billion, reflecting an 84.84% year-on-year increase [4] Group 5: Long-term Belief - Achieving a 12-fold return over seven years requires a strong belief in the long-term value of the company and the power of belief itself [5]