下游需求回暖略需时间，外围不明朗因素增加

Investment Rating - The report maintains a "Neutral" rating for WuXi AppTec (2359 HK) with a target price adjusted to HKD 37.00 [3][11]. Core Insights - WuXi AppTec's 2023 revenue increased by 2.5% year-on-year to RMB 40.34 billion, with various business segments showing different growth rates. However, the decline in COVID-related revenue and a challenging financing environment for pharmaceutical companies have led to a slowdown in revenue growth [2][8]. - The company has improved its operating efficiency, resulting in an increase in gross margin from 36.9% to 40.6% year-on-year. Shareholder net profit rose by 21.3% to RMB 10.69 billion, reflecting a 15.5% increase in adjusted Non-IFRS net profit [2][8]. - The outlook for 2024-25 revenue has been downgraded by 17.4% and 24.3% respectively due to extended order delivery times, reduced R&D spending by downstream pharmaceutical companies, and a still-recovering financing environment [2][3]. Summary by Sections Financial Performance - 2023 total revenue: RMB 40.34 billion, up 2.5% year-on-year [2][8]. - Shareholder net profit: RMB 10.69 billion, up 21.3% year-on-year [2][8]. - Adjusted Non-IFRS net profit: RMB 10.85 billion, up 15.5% year-on-year [2][8]. Revenue Forecasts - 2024E revenue forecast: RMB 39.69 billion, down 17.4% from previous estimates [7]. - 2025E revenue forecast: RMB 45.36 billion, down 24.3% from previous estimates [7]. Business Segment Performance - Chemical segment revenue growth: 1.1% [2]. - Testing segment revenue growth: 14.4% [2]. - Biological segment revenue growth: 3.1% [2]. - Cell and gene therapy CTDMO revenue growth: 0.1% [2]. Market Conditions - The financing environment for small and medium-sized pharmaceutical companies remains challenging, impacting demand for R&D outsourcing services [2][3]. - The potential impact of the U.S. Biologics Act on the company's U.S. business, which accounted for 64.8% of revenue in 2023, is being closely monitored [2][3].