KAIYUAN SECURITIES·2024-07-31 06:00Investment Rating - The investment rating for WuXi AppTec (603259.SH) is "Buy" (maintained) [2] Core Views - The company has shown steady growth in backlog orders, with a significant increase in TIDES business [1] - Despite a decline in revenue and net profit for H1 2024, the company is expected to maintain its long-term growth trajectory [1] - The forecast for net profit from 2024 to 2026 is projected at 10.401 billion, 11.297 billion, and 12.858 billion yuan respectively, with corresponding EPS of 3.57, 3.88, and 4.42 yuan [1] Financial Performance Summary - For H1 2024, the company achieved revenue of 17.24 billion yuan, a year-on-year decline of 8.6%, but a decrease of only 0.7% when excluding COVID-19 commercialization projects [1] - The net profit attributable to shareholders was 4.24 billion yuan, down 20.2% year-on-year, while the adjusted Non-IFRS net profit was 4.37 billion yuan, down 14.2% [1] - In Q2 2024, revenue was 9.26 billion yuan, a year-on-year decline of 6.6% but a quarter-on-quarter increase of 16.0% [1] - The backlog as of June 2024 was 43.1 billion yuan, with a year-on-year growth of 33.2% when excluding COVID-19 projects [1] Business Segment Performance - The chemical business generated revenue of 12.21 billion yuan in H1 2024, a year-on-year decline of 9.3%, but a 2.1% increase when excluding COVID-19 projects [3] - The TIDES business saw revenue of 2.08 billion yuan in H1 2024, representing a year-on-year growth of 57.2%, with backlog orders increasing by 147% [3] - Clinical testing business revenue was 3.02 billion yuan in H1 2024, down 2.4% year-on-year, while the SMO business grew by 20.4% [4]