Investment Rating - The investment rating for WuXi AppTec is maintained as "Buy" [10][47]. Core Insights - The global CRDMO network of WuXi AppTec is continuously strengthening, benefiting from the development of small molecule CRO services [3]. - The R&D segment is effectively driving new customer acquisition, contributing significantly to the company's growth [5]. - The D&M segment is experiencing substantial capacity release and management improvements, leading to a significant increase in per capita revenue [4]. Summary by Sections Global CRDMO Network and Market Trends - WuXi AppTec has established 15 operational bases globally, covering regions such as China, the USA, Switzerland, and Singapore. The global R&D pipeline is thriving, with a continuous increase in both the types and numbers of new molecules. By 2024, small molecules, including peptides and oligonucleotides, will account for 54.3% of the overall pipeline [3]. - Global R&D spending is projected to rise from $277.6 billion in 2024 to $476.1 billion by 2030, with a significant increase in the use of CRO outsourcing services, expected to exceed 65% by 2034 [3]. D&M Segment Performance - The backlog of unfulfilled orders has surged from 7 billion yuan at the end of 2018 to 56.7 billion yuan by mid-2025. The capital expenditure for the D&M segment is expected to rise from 28% in 2018 to 85% in 2025, resulting in a doubling of per capita revenue from 542,000 yuan in 2018 to an estimated 1,118,000 yuan in 2025 [4]. - Management efficiency has improved, with the management expense ratio decreasing from 15.3% in 2018 to 7.5% in mid-2025 [4]. R&D Segment Contributions - The R&D segment, which includes chemistry, biology, and preclinical testing, has been pivotal in attracting new clients, contributing over 70% of new customer acquisitions in 2024. Among these new clients, 35% have successfully secured financing in the past five years, indicating strong project potential [5]. - Since 2018, the overall order growth has achieved a compound annual growth rate (CAGR) of 38%, with the D&M segment experiencing a remarkable CAGR of 55% [5]. Pipeline and Innovation - The R&D segment has successfully delivered over 440,000 new compounds, with the D&M segment adding 412 new molecules in the first half of 2025, bringing the total pipeline to over 3,400 molecules, including 76 commercial projects [6]. - WuXi AppTec has supported 20% of the 40 small molecule drugs approved by the FDA in 2024, showcasing its significant role in the industry [6]. Financial Projections - Revenue forecasts for 2025-2027 have been revised upwards to 434.72 billion yuan, 501.78 billion yuan, and 573.21 billion yuan, respectively. The net profit estimates have also been increased to 148.53 billion yuan, 140.30 billion yuan, and 161.41 billion yuan for the same period [10][47].

Investment Rating - The report assigns a "Buy" rating for WuXi Biologics (2269.HK) based on its strong performance and growth potential in the biopharmaceutical sector [13]. Core Insights - The overall performance of the company meets expectations, with significant acceleration in the second half of the year driven by a recovery in the North American market, high growth in preclinical services (R&D), and strong demand for ADC projects [2][5]. - The company has a robust project and order reserve, indicating a solid foundation for sustained growth, with 151 new projects signed in 2024, a 14.4% increase from 2023 [4][5]. - The company operates a leading CRDMO platform with three long-term growth curves: Research (R), Development (D), and Manufacturing (M), which are expected to enhance its competitive edge [6]. Financial Performance Summary - In 2024, the company achieved total revenue of 18.675 billion yuan, a year-on-year increase of 9.6%, with non-COVID revenue growing by 13.1% [1][2]. - The gross profit for 2024 was 7.651 billion yuan, reflecting a gross margin of 41.0%, while net profit reached 3.945 billion yuan, a 10.5% increase [1][7]. - The adjusted net profit attributable to the parent company was 4.784 billion yuan, showing a 1.8% increase, with an adjusted net margin of 25.6% [1][7]. Revenue Breakdown - Revenue from North American clients was 10.696 billion yuan, a 32.5% increase, while revenue from Chinese clients decreased by 9.7% to 2.820 billion yuan [2][3]. - Preclinical service revenue grew by 30.7% to 7.062 billion yuan, while late-stage clinical development revenue declined by 3.2% to 7.485 billion yuan [3][4]. - Revenue from biopharmaceutical projects decreased by 2.6% to 14.731 billion yuan, while XDC project revenue surged by 106.9% to 3.944 billion yuan [3][4]. Future Projections - The company anticipates a revenue growth of 12-15% in 2025, with core business revenue expected to grow by 17-20% [5]. - Projected revenues for 2025-2027 are 21.361 billion yuan, 24.391 billion yuan, and 27.421 billion yuan, respectively, with net profits expected to reach 4.028 billion yuan, 4.639 billion yuan, and 5.280 billion yuan [7][8].

Investment Rating - The report assigns a "Buy" rating for WuXi Biologics (2269.HK) based on its strong performance and growth potential [1]. Core Views - The overall performance of the company meets expectations, with significant acceleration in the second half of the year. The company achieved a total revenue of 18.675 billion yuan in 2024, a year-on-year increase of 9.6%, and a non-COVID revenue growth of 13.1% [2][3]. - The company has a robust project and order reserve, indicating a solid foundation for sustained growth. In 2024, the company signed 151 new projects, an increase from 132 in 2023, with over half coming from the U.S. [4][5]. - WuXi Biologics operates a globally leading CRDMO platform with three long-term growth curves: Research (R), Development (D), and Manufacturing (M) [6]. Summary by Sections Financial Performance - In 2024, the company reported a gross profit of 7.651 billion yuan, a 12.1% increase, with a gross margin of 41.0%. The net profit reached 3.945 billion yuan, up 10.5%, with a net margin of 21.1% [1][2]. - The adjusted net profit attributable to the parent company was 4.784 billion yuan, reflecting a 1.8% year-on-year growth, with an adjusted net margin of 25.6% [1]. Revenue Breakdown - Revenue from North American clients was 10.696 billion yuan, a 32.5% increase, accounting for approximately 52.3% of total revenue. In contrast, revenue from Chinese clients decreased by 9.7% to 2.820 billion yuan [2][3]. - The revenue from preclinical services grew by 30.7% to 7.062 billion yuan, while late-stage clinical services saw a decline of 3.2% to 7.485 billion yuan [3]. Project and Order Reserves - The company has a total of 402 preclinical projects and 243 phase I projects, with a total unfulfilled order amount of approximately 18.5 billion USD, indicating a strong pipeline for future growth [4][5]. - The company expects a revenue growth of 12-15% in 2025, with a continued increase in profitability [5]. Earnings Forecast - Projected revenues for 2025-2027 are 21.361 billion yuan, 24.391 billion yuan, and 27.421 billion yuan, respectively, with net profits of 4.028 billion yuan, 4.639 billion yuan, and 5.280 billion yuan [7].