KAIYUAN SECURITIES·2024-05-05 06:00Investment Rating - The investment rating for WuXi AppTec (603259.SH) is "Buy" (maintained) [2][6][13] Core Views - The company's conventional business is operating steadily, with strong growth in TIDES business. The non-COVID order backlog is growing steadily, indicating a positive long-term outlook [6][7][8] - The company achieved a revenue of 7.98 billion yuan in Q1 2024, a year-on-year decline of 11.0%, but only a 1.8% decline when excluding COVID-related projects. The net profit attributable to shareholders was 1.94 billion yuan, down 10.4% year-on-year, while the non-recurring net profit increased by 7.3% year-on-year [6] - The TIDES business saw a revenue increase of 43.1% year-on-year in Q1 2024, with a backlog growth of 110% as of March 2024. The company is actively expanding into oligonucleotide and peptide businesses [7][8] Financial Performance Summary - For Q1 2024, the chemical business revenue was 5.56 billion yuan, down 13.5% year-on-year, but only down 0.6% when excluding COVID-related projects. Testing business revenue was 1.49 billion yuan, up 2.6% year-on-year, while biological business revenue was 560 million yuan, down 2.8% year-on-year [6][7] - The company forecasts net profits attributable to shareholders of 10.40 billion, 11.30 billion, and 12.86 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 3.55, 3.85, and 4.38 yuan [6][9] - The current price-to-earnings (P/E) ratio is projected to be 12.3, 11.3, and 10.0 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation [6][9]