Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (2268 HK) with a target price raised to HKD 44.00, indicating a potential upside of 138.9% from the current closing price of HKD 18.42 [1][6]. Core Insights - The company's 1H24 performance exceeded expectations, with revenue and adjusted net profit increasing by 68% and 147% year-on-year, reaching RMB 1.67 billion and RMB 530 million respectively. The gross margin improved significantly by 9 percentage points to 32.1% due to enhanced operational efficiency and optimized procurement strategies [1][2]. - WuXi AppTec secured 26 new comprehensive projects, bringing the total to 167, including 29 Phase II or III projects and 9 projects nearing submission. The company anticipates a BLA submission in the U.S. within this year and the initiation of CMO projects starting next year [1][2]. - The North American revenue contribution rose to 49% in 1H24, up from 40% for the entire year of 2023, with expectations that North America will contribute over 40% of total revenue for the year [1][2]. Financial Forecast Adjustments - Revenue forecasts for 2024-2026 have been raised to RMB 34.0 billion, RMB 51.4 billion, and RMB 68.3 billion respectively, while adjusted net profit forecasts have been increased to RMB 9.3 billion, RMB 14.2 billion, and RMB 19.2 billion [2][3]. - The report reflects a downward adjustment of the perpetual growth rate to 2% due to uncertainties in the competitive landscape, while the DCF valuation model continues to be applied [2][3]. Financial Data Summary - For 2024E, the projected revenue is RMB 3.402 billion with an adjusted net profit of RMB 934 million, reflecting a net profit margin of 27.4% [3][7]. - The company is expected to see significant growth in revenue and profitability over the next few years, with projections indicating a revenue increase to RMB 6.827 billion and an adjusted net profit of RMB 1.922 billion by 2026E [3][7].
药明合联：1H24业绩超预期，订单亮眼表现驱动业绩高增长确定性，上调目标价