WuXi AppTec(603259) 光大证券·2024-10-29 15:07Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of WuXi AppTec, with current prices at 53.49 CNY and 53.25 HKD respectively [5]. Core Views - The company reported a revenue of 27.7 billion CNY for the first three quarters of 2024, a year-over-year decrease of 6.2%, and a net profit attributable to shareholders of 6.53 billion CNY, down 19.1% year-over-year, which aligns with expectations [1]. - The conventional business is developing steadily, with a quarter-on-quarter revenue improvement expected. In Q3 2024, the company achieved a revenue of 10.46 billion CNY, a year-over-year decline of 1.96%, and a net profit of 2.29 billion CNY, down 17.02% year-over-year [2]. - The order backlog is growing rapidly, with a total of 43.8 billion CNY in orders as of Q3 2024, a year-over-year increase of 35.2%. The new molecular (TIDES) business saw a significant order increase of 196% [3]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 10.46 billion CNY and a net profit of 2.29 billion CNY, with a notable decline in net profit margins [2]. - The first three quarters of 2024 showed a total revenue of 27.7 billion CNY and a net profit of 6.53 billion CNY, indicating a decrease compared to the previous year [1]. Business Segments - The conventional business is showing resilience, with a 4.6% year-over-year revenue increase when excluding the impact of COVID-19 commercialization projects [2]. - The TIDES business is expected to achieve over 60% revenue growth for the year, with Q3 revenue reaching 3.55 billion CNY, a 71% increase year-over-year [3]. Profitability and Valuation - The report forecasts net profits for 2024-2026 at 9.23 billion CNY, 10.28 billion CNY, and 11.15 billion CNY respectively, with corresponding year-over-year changes of -3.93%, +11.32%, and +8.49% [3]. - The projected P/E ratios for A-shares are 17, 15, and 14 for the years 2024, 2025, and 2026 respectively, while for H-shares, they are 15, 14, and 13 [3].