Investment Rating - The report maintains an "Outperform" rating for WuXi Biologics (02269 HK) [1][4] Core Views - Revenue remained stable in H1 2024, but net profit declined YoY [1][5] - The "Follow and Win the Molecule" strategy continues to advance, with total backlog maintaining at historical highs [1][7] - Global strategic layout upgrades are driving international business expansion [1][9] - Breakthroughs in drug discovery and production technologies are accelerating [1][10] Financial Performance - H1 2024 revenue reached RMB 8 574 million (+1 0% YoY, +7 7% excluding COVID-19 projects) [1][5] - Net profit attributable to shareholders was RMB 1 499 million (-33 9% YoY) [1][5] - IFRS adjusted net profit was RMB 2 540 million (-13 0% YoY) [1][5] - Sales expense ratio increased to 2 6% (+1 4pp), management expense ratio rose to 9 0% (+1 0pp), while financial expense ratio decreased to 0 8% (-0 1pp) [1][5] Business Development - 61 new projects signed in H1 2024 (+32 6% YoY), including 9 "Win the Molecule" projects [1][7] - Total backlog reached $20 105 billion as of June 30 2024 [1][7] - Total ongoing projects reached 742 (+21 0% YoY) [1][7] - Significant expansion across all biologics pipelines: monoclonal antibodies (316 projects, +13 7%), bispecific/multispecific antibodies (123 projects, +17 1%), antibody-drug conjugates (167 projects, +51 8%), fusion proteins (76 projects, +13 4%), other proteins (37 projects, +8 8%), and vaccines (23 projects, +21 1%) [1][7][8] Global Expansion - Capacity expansion in New Jersey, USA: added 2000L drug substance capacity [1][9] - Completed first PPQ project in Dundalk, Ireland [1][9] - MFG20 facility launched in Hangzhou, China with three 5000L single-use bioreactors [1][9] - DP2 and DP5 facilities in Wuxi, China successfully passed FDA pre-approval inspections [1][9] Technological Advancements - CD3/WuXiBodyTM and WuXiUPTM platforms successfully produced CN201 molecule, a potential best-in-class CD3xCD19 antibody [1][10] - Next-generation production platform WuXiUITM increased protein yield by 3-6 times [1][10] Financial Projections - 2024-2026 net profit forecast maintained at RMB 3 823/4 483/5 321 million, with YoY growth of 12 4%/17 3%/18 7% [1][11] - 2024-2026 revenue projected at RMB 18 145/20 852/24 129 million, with YoY growth of 6 5%/14 9%/15 7% [2] - EPS expected to be RMB 0 90/1 05/1 25 for 2024-2026 [2]
药明生物：2024年半年报点评：在手订单维持高位，“跟随并赢得分子”战略持续推进