WuXi AppTec(603259) 光大证券·2025-03-19 05:55Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of WuXi AppTec, with current prices at 69.68 CNY and 72.35 HKD respectively [5]. Core Views - WuXi AppTec reported a revenue of 39.241 billion CNY for 2024, a decrease of 2.73% year-on-year, but a 5.2% increase when excluding COVID-19 commercialization projects. The net profit attributable to shareholders was 9.45 billion CNY, down 1.63% year-on-year, while the net profit excluding non-recurring items grew by 2.47% to 9.988 billion CNY, aligning with expectations [1]. - The company experienced a continuous improvement in performance, with a significant increase in backlog orders, reaching 49.31 billion CNY by the end of 2024, a 47% year-on-year growth, indicating robust future revenue support [1]. - The TIDES business segment showed remarkable growth, with a 70.1% year-on-year increase in revenue to 5.8 billion CNY, and a 103.9% growth in related backlog orders [2]. Summary by Sections Financial Performance - For Q4 2024, WuXi AppTec achieved a revenue of 11.54 billion CNY, a quarter-on-quarter increase of 10.31%, and a net profit of 2.92 billion CNY, up 27.22% quarter-on-quarter [1]. - The gross margin improved by 0.68 percentage points to 43.46% [1]. Business Segments - The chemical business generated a revenue of 29.05 billion CNY in 2024, with an 11.2% year-on-year growth when excluding specific projects. The small molecule D&M business contributed 17.87 billion CNY, with a 6.4% growth excluding COVID-19 projects [2]. - The TIDES business is expected to expand capacity significantly, with the total volume of peptide solid-phase synthesis reactors increasing to 41,000 liters by the end of 2024 and projected to exceed 100,000 liters by the end of 2025 [2]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been revised upwards, with net profit estimates of 10.978 billion CNY for 2025, 12.516 billion CNY for 2026, and 14.147 billion CNY for 2027, reflecting year-on-year growth rates of 16.2%, 14.0%, and 13.0% respectively [3]. - The corresponding price-to-earnings ratios for A-shares are projected to be 18, 16, and 14 for 2025, 2026, and 2027 respectively, while for H-shares, they are expected to be 18, 15, and 14 [3].