Minsheng Securities·2024-07-30 06:30Investment Rating - The report maintains a "Recommended" rating for WuXi AppTec [2][3] Core Views - WuXi AppTec's revenue for the first half of 2024 was 17.24 billion yuan, a year-on-year decrease of 8.6%, with a net profit attributable to shareholders of 4.24 billion yuan, down 20.2% [1] - The company has seen a significant increase in orders, with a total of 43.1 billion yuan in hand orders, representing a year-on-year growth of 33.2% when excluding COVID-19 projects [1] - The report highlights a continued demand for integrated services, with the company maintaining its revenue guidance for 2024 at 38.3-40.5 billion yuan, reflecting a year-on-year growth of 2.7%-8.6% when excluding COVID-19 projects [1] Summary by Sections Financial Performance - In Q2 2024, WuXi AppTec achieved revenue of 9.26 billion yuan, a quarter-on-quarter increase of 16.0%, with adjusted net profit of 2.46 billion yuan, up 28.5% [1] - The company reported a non-COVID revenue growth of approximately 0.3% in Q2 [1] Business Segments - The R&D segment saw revenue of 12.21 billion yuan, with a non-COVID growth rate of 2.1% [2] - The TIDES business experienced rapid growth, achieving revenue of 2.08 billion yuan, a year-on-year increase of 57.2%, with hand orders up 147% [2] - The testing and biology segments faced challenges, with WuXi Testing revenue at 3.02 billion yuan, down 2.4%, and WuXi Biology revenue at 1.17 billion yuan, down 5.2% [2] Future Projections - The report forecasts net profits for WuXi AppTec of 9.40 billion yuan in 2024, 10.65 billion yuan in 2025, and 12.17 billion yuan in 2026, with corresponding PE ratios of 12, 11, and 9 [3]