Yao Ming Kangde released its first quarterly report of 2025:2025Q1 achieved revenue of 9.65 billion yuan (yoy +21.0%), continuous operating income yoy +23.1%, net profit to mother of 3.67 billion yuan (yoy +89.1%), net profit of 2.33 billion yuan (yoy +14.5%) after deducting non-IFRS net profit of 2.68 billion yuan (yoy +40.0%).
WuXi Chemistry: 2025Q1 revenue of 7.39 billion yuan (yoy +32.9%), adjusted non-IFRS gross profit margin of 47.5% (yoy+4.2pct).
Small molecule D&M side: small molecule D&M business revenue of 3.85 billion yuan (yoy +13.8%). A total of 203 new molecules were added to the Q1 D&M pipeline, and the total number of small molecule D&M pipelines reached 3,393, including 5 new clinical phase III and commercial projects. By the end of the first quarter, there were a total of 75 commercialization projects and 82 clinical phase III projects.
TIDES: 2025Q1 TIDES's business revenue was 2.24 billion yuan (yoy +187.6%). As of the end of the first quarter, the number of active orders was +105.5%, the number of D&M service customers was +14%, and the number of service molecules was +25%.
WuXi Testing: 2025Q1 revenue 1.29 billion yuan (yoy -4.0%), adjusted non-IFRS gross profit margin of 23.4% (yoy-14.1pct).
Laboratory analysis and testing: 2025Q1's revenue is 0.88 billion yuan (yoy -4.9%), which is mainly affected by price adjustments under market influence, and is gradually reflected in revenue as orders are converted. Among them, revenue from the security assessment business yoy -7.8%.
Clinical CRO&SMO: 2025Q1 revenue 0.41 billion yuan (yoy -2.2%), mainly affected by market price factors. Among them, SMO business revenue was +5.5% year-on-year; clinical CRO continued to focus on advantageous areas such as endocrinology, skin, lung cancer, and cardiovascular medicine.
WuXi Biology: 2025Q1's revenue was 0.61 billion yuan (yoy +8.2%), and the adjusted non-IFRS gross profit margin was 36.3% (yoy-2.2pct). The main reason for the decline in gross margin was market price fluctuations. New molecular drug discovery services continued to grow well, and their revenue contribution remained stable at 30% +.
Profit forecast and investment rating: The company maintained the previous full-year guideline and continued to operate active business orders of 52.33 billion yuan (yoy +47.1%) as of the end of the first quarter, demonstrating the global competitiveness of leading CXO companies in China.
We expect the company to achieve revenue of 42.3, 48, and 55.3 billion yuan in 2025-2027, and adjusted net profit of 11.9, 13.5, and 15.6 billion yuan, corresponding PE of 14.3, 12.6, and 10.9 times, respectively, to maintain a “highly recommended” rating.
Risk warning: risks such as geopolitics, policy changes, capacity building, production, and exchange rate fluctuations.
