WuXi AppTec(603259) 国信证券·2025-04-21 00:42Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][29] Core Views - The company's revenue has shown a quarter-on-quarter increase, with rapid growth in new molecular business. The overall revenue for 2024 is 39.241 billion yuan, a decrease of 2.7%, but a 5.2% increase when excluding COVID-19 commercialization projects. The net profit attributable to the parent company is 9.450 billion yuan, down 1.6%, while the adjusted Non-IFRS net profit is 10.58 billion yuan, down 2.5% [6][3][5] - The CRDMO business model is driving growth, with revenue from chemical, testing, and biological services at 29.052 billion yuan (-0.4%, with an 11.2% increase excluding COVID-19 projects), 5.671 billion yuan (-13.3%), and 2.544 billion yuan (-0.3%) respectively [16][5] Summary by Sections Financial Performance - In Q4 2024, the company achieved a single-quarter revenue of 11.539 billion yuan (+6.9%) and a net profit of 2.917 billion yuan (+90.6%). The adjusted Non-IFRS net profit for the same quarter was 3.240 billion yuan (+20.4%) [6][3][5] - The gross profit margin for 2024 is 41.48% (+0.3pp), and the net profit margin is 24.38% (+0.3pp) [11][5] Business Segments - The small molecule CRO/CDMO business has shown strong growth, with over 460,000 new compounds synthesized and delivered in 2024 (+10%). The small molecule D&M business generated revenue of 17.87 billion yuan, with a 6.4% increase when excluding specific commercialization projects [23][5] - The TIDES business has also experienced rapid growth, achieving revenue of 5.80 billion yuan (+70.1%) and a 103.9% increase in orders on hand by the end of 2024 [23][5] Future Outlook - The company maintains a solid industry position, with steady quarterly performance improvements expected. The profit forecasts for 2025-2027 are adjusted upwards, with net profits projected at 11.162 billion yuan, 12.732 billion yuan, and 14.506 billion yuan respectively, reflecting year-on-year growth rates of 18.11%, 14.07%, and 13.93% [3][5][4]