药明康德：盈利回顾 - 将 2025 财年持续运营业务指引上调至同比增长 13 - 17%，TIDES 业务预计同比增长 80%-WuXi AppTec Co. (2359.HK)_ Earnings review_ Raised FY25 guidance to +13-17% y_y for continuing operation, with TIDES to grow by 80% yy

Summary of WuXi AppTec Co. Earnings Call Company Overview - Company: WuXi AppTec Co. (2359.HK) - Industry: Biotechnology and Pharmaceutical Services Key Financial Highlights - 2Q25 Sales: Rmb11.1 billion, representing a 20.4% year-over-year (y/y) increase [1] - Adjusted Net Profit (NP): Rmb6.3 billion, up 44.4% y/y with an adjusted net margin (NM) of 30.4% [1] - Gross Margin: Increased to 45.8% from 41.6% in 1Q25, driven by process improvements and cost management [1] - Revenue Guidance for FY25: Raised to +13%-17% y/y from 10%-15% y/y, with full-year revenue expected to reach Rmb42.5-43.5 billion [2] Growth Drivers - TIDES Revenue Growth: Management raised TIDES revenue growth guidance to >80% y/y for FY25, indicating strong momentum in the second half of the year [8] - New Orders: Increased by 12% y/y excluding foreign exchange (FX) effects, with a backlog for continuing operations growing 37.2% y/y to Rmb56.69 billion [5] - Pipeline Opportunities: Focus on complex oral small molecule GLP-1 programs and other indications such as PCSK9 and autoimmune diseases [6] Regional Performance - US Market Growth: Notably outperformed other regions with a 48% y/y increase, while China saw a 9% y/y decline and Europe a 7% y/y decline [1] Operational Insights - Capacity Utilization: Full utilization of 1H capacity, with growth in 2H contingent on new capacity validation [5] - Early-Stage Services: Recovery remains slow due to biotech funding constraints, but demand for high-quality programs is resilient [8] Capital Expenditure and Shareholder Returns - Capex: 2Q25 capex was Rmb1.37 billion, with full-year guidance maintained at Rmb7-8 billion [8] - Shareholder Returns: Over Rmb1 billion in A-share repurchase completed in 1H25, with additional Rmb1 billion planned [8] Risks and Valuation - Valuation: Target price raised to HK$96.90 from HK$85.50, based on a forward P/E of 17x [11] - Key Risks: Include potential legislative impacts from the US Biosecure Act, pricing pressures, and regulatory risks [11] Additional Insights - Management's Conservative Approach: Despite raising guidance, management remains cautious due to ongoing policy uncertainties [2] - Focus on High-Quality Clients: The company is prioritizing differentiated capabilities and high-quality clients to navigate market challenges [8] This summary encapsulates the key points from the earnings call, highlighting the company's performance, growth strategies, and market outlook.