Investment Rating - The report maintains an "Accumulate" rating for WuXi Biologics (2269) [1][3]. Core Views - The company's non-COVID business revenue reached 16.506 billion yuan, a year-on-year increase of 37.7%, with overseas investment and financing recovering steadily, and the number of new projects exceeding expectations, indicating a positive long-term outlook [3]. - For 2023, the company reported total revenue of 17.034 billion yuan (+11.6%) and a net profit attributable to shareholders of 3.4 billion yuan (-23.1%), with adjusted net profit at 4.95 billion yuan (-2.0%) [3]. - The gross profit margin was 40.1%, down 3.9 percentage points, impacted by capacity ramp-up and operational efficiency improvements from WBS [3]. - The projected net profit for 2024-2026 is estimated at 3.544 billion yuan (5.4% growth), 4.491 billion yuan (20.5% growth), and 5.793 billion yuan (24.5% growth) respectively, with adjusted net profit estimates of 5.030 billion yuan, 6.062 billion yuan, and 7.467 billion yuan [3]. - The target price has been adjusted down to 20.5 HKD (-17.3%), corresponding to a 2024 PE of 16X [3]. Financial Summary - The company reported a revenue of 17.051 billion yuan in 2023, with a projected revenue of 17.949 billion yuan in 2024, reflecting a 5% growth [7]. - The net profit for 2023 was 3.4 billion yuan, with expectations of 3.544 billion yuan in 2024, indicating a 4% increase [7]. - The PE ratio for 2023 is 33.21, with projections of 15.81 for 2024, 12.47 for 2025, and 9.67 for 2026 [7]. Project and Capacity Development - The number of new projects exceeded expectations, with total new projects in 2023 being 132, and a significant increase in non-COVID project revenue by 101.7% [3]. - The company expects revenue growth of 5%-10% in 2024, with non-COVID business projected to grow by 8%-14% [3]. - The European revenue contribution reached 30.2% (+13.5 percentage points), with a year-on-year growth of 172.4%, while North America accounted for 47.7% (-8.2 percentage points) with a 20.2% increase [3].
药明生物2023年报点评：业绩符合预期，海外产能逐步落地