2023年业绩符合预期，维持30%现金分红比例

Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (603259 CH) with a target price of RMB 66.31, reflecting a 30% upside potential from the current price of RMB 50.81 [1][14]. Core Insights - WuXi AppTec's 2023 performance met expectations, with revenue and net profit reaching RMB 40.34 billion and RMB 9.61 billion, respectively, representing year-on-year growth of 2.5% and 9.0% [4][11]. - The company has maintained a 30% cash dividend payout ratio, distributing RMB 9.8 per 10 shares in 2023, totaling RMB 2.88 billion [4][11]. - The TIDES new molecule platform within the chemical business segment is expected to drive long-term revenue growth, with a significant increase in orders and revenue [5][11]. Financial Performance Summary - In 2023, WuXi AppTec achieved revenue of RMB 40.34 billion and a net profit of RMB 9.61 billion, with active clients increasing by over 1,200 to more than 6,000 [4][11]. - The company forecasts 2024 revenue to be between RMB 38.3 billion and RMB 40.5 billion, with a non-IFRS net profit margin expected to remain stable at approximately 26.9% [4][11]. - The projected compound annual growth rate (CAGR) for revenue and net profit from 2023 to 2026 is estimated at 7.5% and 7.8%, respectively [4][11]. Business Segment Analysis - The chemical business segment generated RMB 29.17 billion in revenue in 2023, with a 36% increase when excluding COVID-19 related projects [5][11]. - The testing segment reported revenue of RMB 6.54 billion, reflecting a 14% year-on-year increase, while the biological segment achieved RMB 2.55 billion, up 3% [5][11]. - The TIDES platform's revenue grew by 64% year-on-year to RMB 3.41 billion, with a 226% increase in orders [5][11]. Adjustments and Forecasts - The report has adjusted the target price down by 53% from RMB 140.27 to RMB 66.31 due to uncertainties in U.S. policies affecting revenue forecasts for the chemical and testing segments [1][14]. - Revenue forecasts for 2024 and 2025 have been reduced by 24% and 30%, respectively, with net profit and EPS estimates also lowered by 21% and 28% [12][14]. - The updated financial projections for 2024 include revenue of RMB 39.53 billion, net profit of RMB 9.47 billion, and EPS of RMB 3.19 [12][14].