WuXi AppTec(603259) 国信证券·2024-11-03 07:19Investment Rating - The report maintains an "Outperform" rating for WuXi AppTec (603259 SH) [1][2][10] Core Views - WuXi AppTec's Q3 2024 revenue exceeded RMB 10 billion, with a year-on-year increase of 14 6% excluding COVID-19 commercial projects [1][5] - The company's revenue diversification is evident, with US client revenue turning positive in the first three quarters of 2024 [1] - The integrated CRDMO model continues to drive growth, particularly in the chemical business, with 915 new molecules added in the first three quarters of 2024 [1][8] - TIDES business showed rapid growth, with revenue increasing by 71 0% year-on-year in the first three quarters of 2024 [1][9] Financial Performance - For Q1-3 2024, WuXi AppTec achieved revenue of RMB 27 7 billion (down 6 2% year-on-year, but up 4 6% excluding COVID-19 commercial projects) and net profit attributable to shareholders of RMB 6 53 billion (down 19 1% year-on-year) [1][5] - Q3 2024 revenue was RMB 10 46 billion (down 2 0% year-on-year, but up 14 6% excluding COVID-19 commercial projects) [1][5] - Adjusted Non-IFRS net profit attributable to shareholders for Q3 2024 was RMB 2 97 billion, up 20 9% quarter-on-quarter [1][5] Business Segments - Chemical business: The CRDMO model drove growth, with 915 new molecules added in the first three quarters of 2024, including 898 pre-clinical and clinical I projects, 14 clinical II projects, 1 clinical III project, and 2 commercial projects [1][8] - ATU business: Revenue and gross margin declined year-on-year due to the impact of proposed US legislation, but 59 ATU CDMO projects were still in progress, including the world's first TIL commercial project [1][8] - TIDES business: Revenue reached RMB 3 55 billion in the first three quarters of 2024, with a 196% year-on-year increase in orders [1][9] Order Book and Client Base - As of September 2024, the company's order book reached RMB 43 82 billion, up 35 2% year-on-year excluding COVID-19 commercial projects [1][9] - Revenue from the top 20 global pharmaceutical clients was RMB 11 22 billion in the first three quarters of 2024, up 23 1% year-on-year excluding COVID-19 commercial projects [1][9] Financial Forecasts - Revenue for 2024/2025/2026 is projected to be RMB 39 27/43 96/49 30 billion, with year-on-year growth rates of -2 7%/11 9%/12 1% [2][10] - Net profit attributable to shareholders for 2024/2025/2026 is expected to be RMB 9 44/10 77/12 28 billion, with year-on-year growth rates of -1 71%/14 03%/14 08% [2][10]