Investment Rating - The report maintains a "Hold" rating for WuXi Biologics (2269.HK) and lowers the target price to HKD 20, indicating a potential upside of 45% from the current price of HKD 13.76 [2][4]. Core Views - The revenue growth guidance for 2024 is set at 5%-10%, which is significantly below previous expectations and market consensus [2][3]. - The company’s 2023 revenue reached RMB 17 billion, reflecting an 11.6% year-over-year increase, while the adjusted net profit was RMB 4.7 billion, down 4.6% year-over-year [3][9]. - The report highlights that geopolitical factors are expected to impact the company's stock price in the short term [2][3]. Financial Summary - For 2023, total revenue was RMB 170 billion, with non-COVID revenue growing by 37.7% year-over-year [3]. - The adjusted net profit for 2023 was RMB 47 billion, which was slightly above market expectations [3]. - The gross margin for 2023 was 40.1%, marking a decline of 3.9 percentage points year-over-year, attributed to the ramp-up of overseas production capacity [3][9]. - The second half of 2023 saw a revenue increase of only 6% year-over-year, primarily driven by XDC revenue growth [3][9]. - The company expects approximately 70% of its 2024 revenue to be secured from orders on hand by the end of 2023 [3]. Revenue and Profit Forecast - The revenue forecast for 2024 is adjusted downwards, with expectations of RMB 17.9 billion, reflecting a 5.3% increase year-over-year [8][11]. - The adjusted net profit for 2024 is projected to be RMB 3.6 billion, representing a 7.3% increase year-over-year [8][11]. - The report introduces financial forecasts for 2026, with expected revenue of RMB 21.6 billion and net profit of RMB 4.6 billion [8][11]. Market Performance - The stock has a 52-week price range of HKD 12.9 to HKD 56.7, with a current market capitalization of HKD 58.6 billion [4][9]. - The average daily trading volume over the past three months was HKD 1.3 billion [4].
2024年5%-10%收入增速指引，低于预期