Xinda Securities·2024-07-30 07:30Investment Rating - The investment rating for WuXi AppTec (603259) is maintained at a "Buy" level, indicating a positive outlook for the stock relative to the benchmark index [1]. Core Insights - The company reported a revenue of RMB 17.241 billion for H1 2024, a decrease of 8.64% year-on-year, with a net profit attributable to shareholders of RMB 4.240 billion, down 20.2% year-on-year [1]. - Despite external uncertainties, the company maintains its annual guidance, expecting revenue to reach between RMB 38.3 billion and RMB 40.5 billion for 2024, with a projected growth rate of 2.7% to 8.6% after excluding specific commercial production projects [2][3]. Financial Performance Summary - For H1 2024, the company achieved a comprehensive gross margin of 39.37%, a decrease of 1.1 percentage points, and a net profit margin of 24.59%, down 3.6 percentage points [2]. - The revenue breakdown for the first half of 2024 includes: - Chemistry: RMB 12.21 billion, down 9.34% (2.1% growth excluding COVID-related business) - TIDES (peptides and oligonucleotides): RMB 2.08 billion, up 57.2% - Testing: RMB 3.02 billion, down 2.35% - Biology: RMB 1.17 billion, down 5.17% - ATU: RMB 570 million, down 19.43% - DDSU: RMB 260 million, down 24.80% [2]. Earnings Forecast - The projected revenues for 2024-2026 are RMB 39.516 billion, RMB 41.884 billion, and RMB 44.557 billion, with year-on-year growth rates of -2.0%, 6.0%, and 6.4% respectively [3]. - The net profit attributable to shareholders is forecasted to be RMB 9.351 billion, RMB 10.324 billion, and RMB 11.093 billion for the same period, with corresponding growth rates of -2.7%, 10.4%, and 7.5% [3].