Minsheng Securities·2024-04-30 13:00Investment Rating - The report maintains a "Recommended" rating for WuXi AppTec (603259.SH) [1][2] Core Views - WuXi AppTec reported Q1 2024 revenue of 7.98 billion yuan, a year-on-year decrease of 11.0%, with a net profit attributable to shareholders of 1.94 billion yuan, down 10.4% [1] - The company continues to see robust growth in its TIDES business, with Q1 revenue reaching 780 million yuan, a year-on-year increase of 43.1% [1] - The company maintains its revenue guidance for 2024, expecting a year-on-year growth of 2.7%-8.6% excluding COVID-19 projects [1] Summary by Sections Financial Performance - Q1 2024 revenue was 79.8 billion yuan, with a net profit of 19.4 billion yuan, and adjusted net profit of 19.1 billion yuan [1] - WuXi Chemistry revenue was 55.6 billion yuan, down 13.5%, but grew 1.2% excluding COVID-19 projects [1] - WuXi Testing revenue was 14.9 billion yuan, up 2.6%, with clinical CRO and SMO revenue growing by 11.0% [1] Business Segments - The TIDES business is expanding rapidly, with significant order growth and increased production capacity [1] - WuXi Biology reported revenue of 5.6 billion yuan, down 2.8%, but new molecular types revenue grew by 12.2% [1] - WuXi ATU revenue was 2.8 billion yuan, down 13.6%, with ongoing preparations for CAR-T production [1] Market Outlook - The company reported Q1 revenue from the US at 4.9 billion yuan, growing 0.4% excluding COVID-19 projects, and European revenue at 1.07 billion yuan, up 3.9% [1] - WuXi AppTec expects to maintain its revenue target for 2024, with adjusted net profit margin expected to remain stable compared to 2023 [1] Future Projections - The projected net profit for 2024-2026 is 9.456 billion yuan, 10.607 billion yuan, and 12.049 billion yuan respectively, with corresponding PE ratios of 14, 12, and 11 [2][6]