Guoxin Securities·2024-03-24 16:00Investment Rating - The investment rating for WuXi AppTec (603259.SH) is "Buy" [3][4][18] Core Views - The company achieved steady growth in 2023, with total revenue surpassing 40 billion RMB, reaching 40.341 billion RMB (+2.5%, excluding COVID-19 commercialization projects +25.6%). The net profit attributable to shareholders was 9.607 billion RMB (+9.0%) [4][11] - The integrated platform model continues to drive growth across various business segments, with all segments except DDSU showing revenue increases [7][11] - The company maintains a solid industry position, and despite geopolitical uncertainties, the core advantages of its integrated model remain intact [4][11] Financial Performance Summary - Revenue and Profit: In 2023, total revenue was 40.341 billion RMB, with a net profit of 9.607 billion RMB. The adjusted Non-IFRS net profit was 10.855 billion RMB (+15.5%) [4][11] - Quarterly Performance: In Q4 2023, revenue was 10.799 billion RMB (-1.5%), and net profit was 1.530 billion RMB (+6.6%) [4][11] - Profit Margins: The gross margin for 2023 was 41.18% (+3.88pp), and the net profit margin was 24.05% (+1.43pp) [6][11] Business Segment Performance - Chemical Business: Revenue reached 29.171 billion RMB (+1.1%), with a strong growth of 36.1% when excluding COVID-19 projects, driven by the integrated CRDMO model [7][11] - Testing Business: Revenue was 6.540 billion RMB (+14.4%), with drug safety evaluation services growing by 27.3% [11][12] - Biological Services: Revenue was 2.553 billion RMB (+3.2%), with new molecular types contributing significantly [11][12] - ATU Business: Revenue was 1.310 billion RMB (+0.2%), with ongoing project development [11][12] - DDSU Business: Revenue was 0.726 billion RMB (-25.2%), reflecting a focus on high-quality project pipelines [11][12] Future Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 9.443 billion RMB, 10.767 billion RMB, and 12.283 billion RMB, respectively, with expected growth rates of -1.71%, 14.03%, and 14.08% [4][11]