China Post Securities·2026-01-19 02:07Investment Rating - The report maintains a "Buy" rating for WuXi AppTec, indicating an expected relative price increase of over 20% compared to the benchmark index within the next six months [8]. Core Insights - WuXi AppTec's revenue for 2025 is projected at 45.46 billion yuan, representing a year-on-year growth of 15.8%. The net profit attributable to shareholders is expected to reach 19.15 billion yuan, a significant increase of 102.7% [5][8]. - The company's core business growth exceeded expectations, with a 21.4% increase in revenue from continuing operations, surpassing previous guidance of 17-18% [6]. - The fourth quarter of 2025 showed a revenue of 12.6 billion yuan, reflecting a 9.2% quarter-on-quarter growth, and a net profit of 7.08 billion yuan, marking a 142.5% increase year-on-year [5][6]. Financial Performance Summary - For 2025, WuXi AppTec's revenue is expected to be 454.6 billion yuan, with a net profit of 191.5 billion yuan. The projections for 2026 and 2027 are 515.5 billion yuan and 588.2 billion yuan in revenue, respectively [8][10]. - The company's Non-IFRS net profit for 2025 is forecasted at 149.6 billion yuan, a 41.3% increase compared to the previous year [5]. - The report highlights a stable Non-IFRS net profit margin of 35.1% in Q4 2025, with expectations for continued improvement in profitability in 2026 due to strong demand in the Chemistry business [7][8]. Earnings Forecast and Valuation - The earnings per share (EPS) for 2025 is projected at 6.42 yuan, with a price-to-earnings (P/E) ratio of 16.3 for the same year [10][11]. - The report anticipates a gradual increase in profitability, with net profit margins expected to improve from 42.1% in 2025 to 32.9% in 2027 [11][13]. - The company's asset-liability ratio is projected to decrease from 26.4% in 2025 to 20.5% in 2026, indicating improved financial stability [11][13].