Core Viewpoint - The report highlights that WuXi AppTec (药明合联) is positioned as a leading player in the global ADC CXO industry, expected to solidify its market leadership due to its advanced technology and product delivery quality amidst rapid industry expansion [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 2.7 billion yuan, a year-on-year increase of 62.2%, with a gross profit of 980 million yuan, up 82.2% year-on-year [2]. - Adjusted net profit (excluding interest and expenses) reached 730 million yuan, reflecting a 69.6% year-on-year growth, while the net profit was 750 million yuan, a 52.7% increase [2]. - The company’s revenue projections for 2025-2027 are 5.99 billion, 8.24 billion, and 10.51 billion yuan, with year-on-year growth rates of 47.7%, 37.7%, and 27.5% respectively [1]. Order Backlog and Market Position - As of the first half of 2025, the company’s unfulfilled order total reached 1.33 billion USD, a 57.9% increase year-on-year, with new contract amounts growing by 48.4% [2]. - The global ADC market is projected to reach 13.2 billion USD in 2024, with a compound annual growth rate (CAGR) of 34.0% from 2020 to 2024, and expected to grow to 66.2 billion USD by 2030 [2]. Strategic Expansion and Capital Expenditure - The company signed 37 new iCMC projects in the first half of 2025, maintaining a robust expansion of its project funnel model [3]. - For 2025, the company plans capital expenditures of 1.56 billion yuan, with significant investments in its Singapore and Wuxi bases, and total capital expenditures expected to exceed 7 billion yuan by 2029 [3].

Core Viewpoint - 中邮证券 initiates coverage on WuXi AppTec with a "Buy" rating, highlighting strong growth in revenue and net profit for the first half of 2025 [1] Financial Performance - Company reported revenue of 2.7 billion yuan for the first half of 2025, representing a year-on-year growth of 62.2% [1] - Net profit reached 750 million yuan, showing a year-on-year increase of 52.7% [1] Project and Order Growth - Total number of iCMC projects reached 225, with 37 new iCMC projects signed in the first half of the year, marking a historical high [1] - The company has an unfulfilled order total of 1.33 billion USD, reflecting a year-on-year growth of 57.9% [1] - New contract amount increased by 48.4% year-on-year, with North America showing the highest growth rate compared to other regions [1] Market Position and Future Projections - Company is recognized as a leading global ADC CXO enterprise, with a comprehensive R&D technology platform [1] - Revenue projections for 2025 to 2027 are 5.75 billion, 7.83 billion, and 10.17 billion yuan, with year-on-year growth rates of 42%, 36%, and 30% respectively [1] - Net profit projections for the same period are 1.6 billion, 2.26 billion, and 3.02 billion yuan, with year-on-year growth rates of 50%, 41%, and 34% respectively [1]

Core Viewpoint - The company reported strong financial performance for the first half of 2025, with significant revenue and profit growth, indicating robust operational momentum and effective market strategies [1][2]. Financial Performance - In 25H1, the company achieved revenue of 2.7 billion yuan, representing a year-on-year increase of 62.2% - Net profit reached 750 million yuan, up 52.7% year-on-year - Adjusted net profit, excluding interest income, was 730 million yuan, reflecting a 69.6% increase [1]. Revenue Breakdown - The revenue from IND before and after was 41% and 59% respectively, consistent with the structure from 24H1, although the IND after revenue share slightly decreased compared to 24H1 - North America remained the largest region, contributing 52% to total revenue in 25H1, an increase of 2 percentage points from 24 - Europe accounted for 22% of revenue, surpassing China's 18%, driven by strong performance in overseas licensing, NewCo models, and M&A activities [1][2]. Profitability Metrics - The company's gross margin improved by 4.0 percentage points year-on-year to 36.1% in 25H1, compared to 30.6% in 24 - The increase in gross margin was attributed to higher capacity utilization in production lines, particularly in the DS/DP segments, and the rapid ramp-up of the new BCM2 L2 production line initiated in November 24 - The adjusted net profit margin (excluding interest income) rose by 1.2 percentage points year-on-year to 27.1% [1]. Project and Capacity Expansion - As of 25H1, the company had a total of 225 iCMC projects, with 37 new projects signed in the first half, marking a historical high - The company also signed 3 new PPQ projects, totaling 11 projects - The total uncompleted order amount reached 1.33 billion USD, up 57.9%, with new contract amounts increasing by 48.4%, particularly in North America [2]. Production Capacity - All production lines, including BCM1, BCM2 L1, BCM2 L2, DP1, and DP2, are operating at high capacity - The third conjugate agent production workshop, DP3, successfully completed GMP release by the end of July 25 - The new Singapore base achieved mechanical completion in June 25 and is entering the equipment and facility debugging phase, with GMP release expected in 26H1 [2]. Capital Expenditure - The company anticipates capital expenditures of 1.56 billion yuan for 25, with approximately 900 million yuan allocated to the Singapore base and about 450 million yuan to the Wuxi base - By 29, total capital expenditures are expected to exceed 7 billion yuan, supporting rapid growth through domestic and international capacity expansion [2]. Investment Outlook - The company is positioned as a leading global ADC CXO enterprise with a comprehensive R&D platform and a growing customer base and project count - Revenue projections for 25, 26, and 27 are 5.75 billion, 7.83 billion, and 10.17 billion yuan, respectively, with year-on-year growth rates of 42%, 36%, and 30% - Expected net profits for the same years are 1.6 billion, 2.26 billion, and 3.02 billion yuan, with growth rates of 50%, 41%, and 34% respectively, leading to a PE ratio of 53, 37, and 28 times [3].