WuXi AppTec(603259) 光大证券·2025-03-19 16:07Investment 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 Insights - WuXi AppTec's revenue for 2024 was 39.241 billion CNY, 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 Q4 2024 revenue reaching 11.54 billion CNY, a quarter-on-quarter increase of 10.31%, and net profit of 2.92 billion CNY, up 27.22% quarter-on-quarter. The growth in profit is attributed to a 0.68 percentage point increase in gross margin to 43.46%, foreign exchange gains from a rising USD, and investment income from the reduction of Wuxi XDC [1]. - As of the end of 2024, the company's order backlog reached 49.31 billion CNY, a year-on-year increase of 47%, indicating robust development and future revenue support [1]. Revenue and Profitability - The chemical business achieved revenue of 29.05 billion CNY in 2024, with an 11.2% year-on-year increase when excluding specific projects. Q4 alone saw a revenue of 8.96 billion CNY, a 13% year-on-year growth. The small molecule D&M business generated 17.87 billion CNY, with a 6.4% increase when excluding COVID-19 projects, and the TIDES business grew by 70.1% to 5.8 billion CNY, with a 103.9% increase in related order backlog [2]. - The report projects net profit for 2025-2027 to be 10.978 billion CNY, 12.516 billion CNY, and 14.147 billion CNY respectively, reflecting year-on-year growth rates of 16.16%, 14.01%, and 13.03% [3]. Valuation Metrics - The projected P/E ratios for A-shares are 18, 16, and 14 for 2025, 2026, and 2027 respectively, while for H-shares, the ratios are 18, 15, and 14 [3]. - The report indicates that the company is a leading one-stop CXO provider with stable performance, supported by rapid growth in TIDES-related business and capacity [3].