Investment Rating - The report maintains an "Outperform" rating for WuXi XDC Cayman (2268 HK) with a target price of HKD 33.45, indicating a potential upside from the current price of HKD 18.56 [3][7]. Core Insights - The company reported strong revenue and profit growth in H1 2024, with operating revenue reaching RMB 1.665 billion (+67.6%), a gross profit margin of 32.1% (+9.0 percentage points), and a net profit attributable to the parent company of RMB 489 million (+175.5%) [4][20]. - The revenue growth is attributed to an increase in the total number of projects, more projects entering later development stages, and enhanced production capacity to meet rising customer demand for CRDMO services [5][21]. - The order backlog as of H1 2024 was USD 842 million, reflecting a year-on-year increase of 105.0%, indicating robust demand and effective capacity expansion plans [5][21]. Financial Summary - Revenue projections for 2024-2026 are RMB 3.434 billion, RMB 4.831 billion, and RMB 6.382 billion, with year-on-year growth rates of 62%, 41%, and 32% respectively [7][22]. - Net profit attributable to shareholders is expected to be RMB 828 million, RMB 1.147 billion, and RMB 1.554 billion for the same period, with growth rates of 192%, 39%, and 35% respectively [7][22]. - The adjusted net profit is projected to be RMB 922 million, RMB 1.250 billion, and RMB 1.680 billion, with growth rates of 124%, 36%, and 34% [7][22]. Market Position and Client Base - The company has established partnerships with 13 of the top 20 pharmaceutical companies globally, contributing to 28.9% of its revenue in H1 2024 [5][21]. - The number of drug discovery projects reached 538, with 111 new projects added in H1 2024, showcasing the company's expanding project pipeline [5][21]. Capacity Expansion - The company is on track to enhance its production capacity, with new facilities expected to begin operations in late 2024 and early 2026 [5][21]. - The workforce has increased to 1,496 employees, a year-on-year growth of 72.2%, supporting the company's expansion efforts [5][21].
药明合联：收入利润强劲增长，在手订单高增长，看好一站式偶联药物CRDMO龙头发展