Yin He Zheng Quan·2025-07-31 03:07Investment Rating - The report maintains a "Buy" rating for WuXi AppTec, indicating a positive outlook for the company's stock performance in the coming months [6]. Core Views - WuXi AppTec's TIDES business continues to show strong growth, leading to an upward revision of the full-year performance guidance. The company expects a revenue growth rate of 13-17% for its continuing operations in 2025, up from the previous estimate of 10-15% [6]. - The company reported a significant increase in revenue and net profit for the first half of 2025, with total revenue reaching RMB 20.8 billion, a year-on-year increase of 20.6%, and net profit attributable to shareholders rising by 101.9% to RMB 8.56 billion [6]. - The report highlights the robust order backlog of RMB 56.69 billion, reflecting a year-on-year increase of 37.2%, indicating strong future revenue potential [6]. Financial Performance Summary - Revenue Forecasts: - 2024A: RMB 39,241.43 million - 2025E: RMB 44,117.35 million (growth of 12.43%) - 2026E: RMB 50,436.29 million (growth of 14.32%) - 2027E: RMB 57,615.13 million (growth of 14.23%) [2][8] - Net Profit Forecasts: - 2024A: RMB 9,450.31 million - 2025E: RMB 14,201.96 million (growth of 50.28%) - 2026E: RMB 14,954.50 million (growth of 5.30%) - 2027E: RMB 18,240.90 million (growth of 21.98%) [2][8] - Key Financial Ratios: - Gross Margin: Expected to increase from 41.48% in 2024A to 46.09% in 2027E - PE Ratio: Expected to decrease from 30.04 in 2024A to 15.56 in 2027E [2][8] - Cash Flow: - Operating cash flow is projected to grow from RMB 12,406.51 million in 2024A to RMB 21,389.74 million in 2027E [7]. Business Segment Performance - Chemical Business: Revenue for H1 2025 reached RMB 16.3 billion, a year-on-year increase of 33.5%, with a gross margin of 49.07% [6]. - TIDES Business: Revenue for H1 2025 was RMB 5.03 billion, showing a remarkable year-on-year growth of 141.6% [6]. - Testing Business: Revenue for H1 2025 was RMB 2.69 billion, with a slight decline in certain segments due to market pricing factors [6]. Geographic Revenue Breakdown - Revenue from U.S. clients in H1 2025 was RMB 14.03 billion, a year-on-year increase of 38.4% - Revenue from European clients was RMB 2.33 billion, a year-on-year increase of 9.2% - Revenue from Chinese clients decreased by 5.2% to RMB 3.15 billion [6]. Conclusion - The report indicates that WuXi AppTec is well-positioned for continued growth, driven by its strong TIDES business and a solid order backlog, with an optimistic outlook for revenue and profit growth in the coming years [6].