WuXi AppTec(SH:603259) ZHONGTAI SECURITIES·2024-10-31 06:00Investment Rating - The investment rating for WuXi AppTec is "Buy" (maintained) [1] Core Views - The company is experiencing a recovery in overall business, with a significant increase in backlog orders, expected to achieve stable revenue growth of 2.7% to 8.6% excluding COVID-19 commercialization projects in 2024 [1][2] - For the first three quarters of 2024, the company reported revenue of 27.70 billion yuan, a year-on-year decrease of 6.23%, and a net profit attributable to shareholders of 6.53 billion yuan, down 19.11% year-on-year [2][3] - The company anticipates a gradual recovery in revenue driven by improved demand from overseas financing and strong growth in its TIDES business [1][2] Financial Performance Summary - Revenue Forecasts: - 2022A: 39,354.78 million yuan - 2023A: 40,340.81 million yuan - 2024E: 39,403.85 million yuan - 2025E: 43,631.07 million yuan - 2026E: 49,615.55 million yuan - Year-on-year growth rates: 2023A (2.51%), 2024E (-2.32%), 2025E (10.73%), 2026E (13.72%) [1] - Net Profit Forecasts: - 2022A: 8,813 million yuan - 2023A: 9,606.75 million yuan - 2024E: 9,845 million yuan - 2025E: 11,057.59 million yuan - 2026E: 12,925.37 million yuan - Year-on-year growth rates: 2023A (9.00%), 2024E (2.48%), 2025E (12.32%), 2026E (16.89%) [1] - Earnings Per Share (EPS): - 2022A: 3.05 yuan - 2023A: 3.33 yuan - 2024E: 3.41 yuan - 2025E: 3.83 yuan - 2026E: 4.48 yuan [1] - Market Capitalization: - As of October 30, 2024, the market capitalization is approximately 150.58 billion yuan [1] Business Segment Performance - TIDES Business: - Revenue for the TIDES business in Q1-Q3 2024 reached 3.55 billion yuan, showing a robust growth of 71.0% year-on-year, with backlog orders increasing by 196% [1][2] - CDMO Business: - Revenue for the CDMO segment was 12.47 billion yuan in Q1-Q3 2024, with a year-on-year growth of approximately 7% [1] - Testing Services: - Revenue for testing services was 4.62 billion yuan in Q1-Q3 2024, down 4.9% year-on-year, with laboratory analysis and testing services contributing 3.26 billion yuan [1][2] Profitability Metrics - Gross Margin: - The gross margin for Q1-Q3 2024 was 40.65%, a decrease of 0.65 percentage points year-on-year [1] - Net Profit Margin: - The net profit margin for Q1-Q3 2024 was 23.83%, down 3.75 percentage points year-on-year [1] Valuation Ratios - P/E Ratio: - 2023A: 17.08 - 2024E: 15.67 - 2025E: 15.30 - 2026E: 13.62 [1] - P/B Ratio: - 2023A: 3.23 - 2024E: 2.73 - 2025E: 2.32 - 2026E: 2.06 [1]