Investment Rating - The report assigns a "Buy" rating for WuXi AppTec (2268.HK) based on its strong performance and growth potential [1]. Core Views - The company demonstrated significant revenue growth driven by overseas business, with XDC expected to become a second growth curve [2][3]. - The increase in project numbers and client base indicates robust long-term growth potential, with a focus on PPQ projects [4][6]. Financial Performance Summary - In H1 2025, the company achieved revenue of 2.701 billion yuan, a year-on-year increase of 62.2%, with a gross profit of 975 million yuan, reflecting an 82.2% growth [1]. - The adjusted net profit reached 800 million yuan, up 50.1% year-on-year, with an adjusted net profit margin of 29.6% [1]. - The company’s gross margin improved by 4.0 percentage points year-on-year, attributed to enhanced production efficiency [3]. Revenue Breakdown - For H1 2025, revenue from IND pre-projects was 1.116 billion yuan, up 70.6%, while IND post-project revenue was 1.586 billion yuan, increasing by 56.8% [2]. - ADC project revenue accounted for approximately 92.7% of total revenue, with a year-on-year growth of 60.2% [2]. - North American clients contributed 1.391 billion yuan, a 68.9% increase, while European clients saw a 95.0% growth, contributing 605 million yuan [2]. Project and Client Growth - The company signed 37 new iCMC projects and added 3 new PPQ projects in H1 2025, indicating a growing project pipeline [4]. - The total number of clients reached 563, with 33% of revenue coming from the top 20 global pharmaceutical companies [6]. Order Backlog and Future Projections - The total unfulfilled orders reached 1.329 billion USD, a 57.9% increase year-on-year, with over 50% from North America [6]. - Revenue projections for 2025-2027 are 5.960 billion yuan, 7.942 billion yuan, and 10.234 billion yuan, respectively, with net profits expected to grow significantly [8].

Group 1: Financial Performance - The company reported a revenue of approximately 489 million RMB and a net profit of about 4.062 million RMB for the first half of 2025 [1] - The net cash flow from operating activities remained positive, amounting to 34.83 million RMB, representing a year-on-year increase of 25% [1] Group 2: Business Strategy and Growth - Since the strategic transformation to CDMO, the company has become a leading domestic biopharmaceutical CDMO provider, offering comprehensive international services from R&D to commercial production [1] - In the first half of 2025, the company added 16 new projects, including 14 ADC projects, bringing the total to 169 projects, and assisted 12 projects in advancing from preclinical to clinical stages [1] - The company has a signed but unfulfilled order backlog of 200 million RMB, indicating strong future revenue potential [1] - The company achieved a repurchase rate of 73% during the reporting period, reflecting high customer satisfaction and service quality [1] Group 3: Product Development and International Expansion - The core product, Bevacizumab injection (domestic brand name: Puxintin), has made significant progress in overseas expansion in emerging markets, successfully obtaining market approval in Nigeria and Pakistan [2] - As of June 30, 2025, the company's facilities have passed GMP inspections in Brazil, Colombia, Egypt, Indonesia, Argentina, and Pakistan, demonstrating international recognition of its quality system and compliance [2] - The approvals in Nigeria and Pakistan mark a breakthrough for the company in international commercial supply, enhancing its global market presence [2]