TIDES (oligonucleotides and peptides)

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WUXI APPTEC(2359.HK):SOLID 1H BEAT GUIDANCE RAISED TIDES IN FULL SWING
Ge Long Hui· 2025-07-31 02:52
Core Insights - WuXi AppTec reported strong 1H25 results with significant revenue and net profit growth, margin expansion, and effective execution in its core CRDMO platform [1] - The company raised its full-year revenue and free cash flow guidance due to rising backlog and sustained global demand [1] Financial Performance - Revenue from continuing operations reached RMB20.4 billion, up 24.2% YoY, while adjusted non-IFRS net profit rose 44.4% YoY to RMB6.3 billion, with gross profit margin (GPM) at 44.5% and net profit margin (NPM) at 30.4% [2] - Backlog increased to RMB56.7 billion, reflecting a 37.2% YoY growth, indicating healthy demand despite a normalization from 47% YoY growth in Q1 [2] Segment Performance - The TIDES segment (oligonucleotides and peptides) was a standout performer, with 1H revenue up 142% YoY to RMB5.0 billion, and a backlog increase of 48.8% YoY [3] - The Chemistry segment also showed solid growth, with a 33.5% YoY increase to RMB16.3 billion, driven by strong demand in small molecule CRDMO [3] Other Segments - WuXi Biology grew 7.1% YoY to RMB1.25 billion, although gross margin slightly declined due to pricing pressure [4] - Testing revenue declined 1.2% YoY, and Clinical CRO & SMO revenue dropped 4.7% YoY, reflecting challenges in early-stage biotech funding and clinical trial outsourcing [4] Guidance Update - Full-year 2025 revenue guidance was raised to RMB42.5-43.5 billion, implying 13-17% growth in continuing operations, and free cash flow guidance increased to RMB5-6 billion [5]