Investment Rating - The report maintains a "Buy" rating for WuXi Biologics [1][2] Core Views - WuXi Biologics reported a revenue of 8.574 billion RMB for the first half of 2024, a year-on-year increase of 1.0%, with non-COVID revenue growth at 7.7%. The net profit attributable to shareholders was 1.499 billion RMB, a decline of 33.9% year-on-year, while adjusted net profit was 2.545 billion RMB, down 13.0% year-on-year [1] - The company has seen a rapid increase in new projects, with 61 new projects signed in the first half of 2024, approximately half of which are from the United States. The total number of projects reached 742 [1] - The company is actively expanding its global production capacity, with significant developments in its Ireland, Hangzhou, Singapore, and Cranbury facilities [1] - Customer retention remains high, with a total unfulfilled order amount of 20.11 billion USD as of the first half of 2024, indicating strong future revenue potential [1] Summary by Sections Financial Performance - Revenue for the first half of 2024 was 8.574 billion RMB, with a 1.0% increase year-on-year. Non-COVID revenue grew by 7.7%. The net profit attributable to shareholders was 1.499 billion RMB, down 33.9% year-on-year, while adjusted net profit was 2.545 billion RMB, a decrease of 13.0% [1] - Forecasted revenues for 2024-2026 are 18.014 billion RMB, 20.256 billion RMB, and 22.833 billion RMB, with growth rates of 5.7%, 12.4%, and 12.7% respectively [2] Project Development - The company signed 61 new projects in the first half of 2024, with about half from the U.S. The total number of projects reached 742, with significant contributions expected from late-stage clinical and commercial projects [1] - The company’s Ireland facility is seeing strong commercial demand, with plans for further capacity expansion [1] Capacity Expansion - The Ireland facility's MFG6 Phase I has completed its first PPQ, with Phase II expected to commence production this year. The Hangzhou facility is installing three 5000-liter single-use bioreactors, expected to be GMP compliant by the end of 2024 [1] - The company plans to invest approximately 4.8 billion RMB in capital expenditures for 2024, primarily for facility expansions in the U.S. and other regions [1] Customer Retention and Future Orders - Customer retention remains high, with a total unfulfilled order amount of 20.11 billion USD, indicating a strong pipeline for future revenue [1] - Recent agreements, such as the acquisition of a client by Merck for a significant upfront payment, highlight the company's strong position in the market [1]
药明生物：2024年半年报点评：新签项目持续高增，下半年RDM三大板块将加速改善