Investment Rating - The report maintains a "Buy" rating for WuXi AppTec, with a target price of 137.75 CNY, based on a 29x PE for 2026 [3][5]. Core Insights - WuXi AppTec's revenue for Q3 2025 reached 12.06 billion CNY, reflecting a 15.3% year-on-year increase, with a net profit of 3.52 billion CNY, up 53.3% [10]. - The company has adjusted its revenue guidance for its continuing operations from 42.5-43.5 billion CNY to 43.5-44 billion CNY, indicating a growth rate adjustment from 13-17% to 17-18% [10]. - The company is focusing on its CRDMO business by divesting its clinical services, which accounted for a small portion of its revenue [10]. Financial Performance Summary - For 2025, the forecasted revenue is 44.76 billion CNY, with a projected net profit of 16.35 billion CNY, representing a 73% increase compared to the previous year [3][10]. - The gross margin is expected to improve to 45.6% in 2025, with a net margin of 36.5% [3][10]. - The company's cash and cash equivalents are projected to increase significantly, reaching 34.01 billion CNY by 2025 [13]. Segment Performance - WuXi Chemistry reported a revenue of 25.98 billion CNY for the first three quarters of 2025, a 29.3% increase, with significant growth in TIDES revenue [10]. - The U.S. market contributed 22.15 billion CNY in revenue, marking a 31.9% increase, while European revenue grew by 13.5% [10]. Valuation Metrics - The report provides a comparison of WuXi AppTec's valuation metrics with peers, indicating a PE ratio of 17.2 for 2026, which is competitive within the industry [11]. - The report highlights a projected net asset return (ROE) of 24.1% for 2025, reflecting strong profitability [13]. Market Context - The report notes that the pharmaceutical R&D services market is experiencing high demand, which is expected to continue driving WuXi AppTec's growth [10]. - The company is well-positioned to capitalize on the increasing trend of outsourcing in the pharmaceutical industry [10].

Investment Rating - The report maintains a "Buy" rating for WuXi AppTec, with a target price of 137.75 CNY, reflecting a 29x PE for 2026 [3][5]. Core Insights - WuXi AppTec's revenue for Q3 2025 reached 12.06 billion CNY, representing a 15.3% year-on-year increase, with a net profit of 3.52 billion CNY, up 53.3% [10]. - The company has adjusted its revenue guidance for continuous operations from 42.5-43.5 billion CNY to 43.5-44 billion CNY, indicating a growth rate increase from 13-17% to 17-18% [10]. - The company is focusing on its CRDMO business by divesting its clinical services, which accounted for only 3.5% of revenue in the first three quarters [10]. Financial Performance Summary - Revenue projections for 2025-2027 have been revised to 44.76 billion CNY, 50.39 billion CNY, and 57.07 billion CNY, respectively, with corresponding net profits of 16.35 billion CNY, 14.19 billion CNY, and 16.58 billion CNY [3][4]. - The gross margin is expected to improve to 45.6% in 2025, with net profit margins projected at 36.5% [4][10]. - The company reported a significant increase in backlogged orders, reaching 59.88 billion CNY, up 41.2% year-on-year, indicating strong future revenue potential [10].

Investment Rating - The investment rating for WuXi AppTec is maintained as "Buy" for both A and H shares [6][7]. Core Views - The company reported a revenue of 39.24 billion RMB for 2024, a decrease of 2.7% year-on-year, but a growth of 5.2% year-on-year when excluding COVID-19 impacts, which aligns with expectations [1]. - The net profit attributable to shareholders for 2024 was 9.45 billion RMB, down 1.6% year-on-year, while the adjusted non-IFRS net profit was 10.58 billion RMB, a decrease of 2.5% year-on-year [1]. - The company has seen a significant increase in its order backlog, with expectations for accelerated growth in 2025-2026, leading to a positive outlook [1][2]. Summary by Sections Financial Performance - In Q4 2024, revenue increased by 6.9% year-on-year, and net profit attributable to shareholders surged by 90.6% year-on-year, driven by improved operational efficiency and favorable exchange rate fluctuations [1]. - The company’s gross margin improved to 43.5% in Q4 2024 from 40.9% in Q4 2023 [1]. Order Backlog and Growth Prospects - As of the end of 2024, the order backlog reached 49.31 billion RMB, reflecting a year-on-year growth of 47.0% [2]. - The TIDES segment showed remarkable growth, with order backlog increasing by 104% year-on-year [2]. Segment Performance - WuXi Chemistry reported a revenue of 29.05 billion RMB in 2024, a slight decrease of 0.4% year-on-year, but a growth of 11.2% year-on-year when excluding COVID-19 impacts [3]. - The CDMO segment generated 17.87 billion RMB, with a year-on-year growth of 6.4% when excluding COVID-19 impacts [3]. Profitability Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 11.79 billion RMB, 13.56 billion RMB, and 16.74 billion RMB, representing year-on-year growth rates of 24.8%, 14.95%, and 23.5% respectively [5]. - The company’s target prices are set at 89.42 RMB for A shares and 100.99 HKD for H shares, based on a sum-of-the-parts valuation [5][6]. Valuation - The company is valued at 258.24 billion RMB for A shares and 291.66 billion HKD for H shares, reflecting adjustments due to changes in the DDSU segment [11].