WUXI APPTEC(603259):STEADY 1Q PERFORMANCE AMID CHALLENGING ENVIRONMENT
WUXI APPTEC(603259):STEADY 1Q PERFORMANCE AMID CHALLENGING ENVIRONMENT
WuXi AppTec reported 1Q24 revenue of RMB7,982mn, down 11.0% YoY, attributable recurring net profit of RMB2,034mn, up 7.3% YoY, and attributable adjusted non-IFRS net profit of RMB1,913mn, down 18.3% YoY. 1Q24 revenue / adjusted Non-IFRS net income accounted for 20.4%/ 16.8% of our 2024 full- year estimates, both moderately lower than historical ranges. Non-IFRS gross profit margin deteriorated by 2.3ppt to 38.7% while non-IFRS net profit margin decreased by 2.1ppt to 24.0% in 1Q24, due to the decline in CDMO revenue from COVID commercial projects, pricing erosion, ramp-ups of new facilities in its Testing and Biology segments, and escalating costs in its ATU segment. Non-COVID D&M revenue (in WuXi Chemistry segment) showed positive growth in 1Q24, up 1.2% YoY. Despite a challenging start of 2024, mgt. has upheld its revenue guidance of RMB38.3-40.5bn for 2024, projecting growth of 2.7% to 8.6% YoY, excluding revenues from COVID-19 commercial projects. Furthermore, mgt. reiterated that the adjusted non-IFRS net profit margin would be align with the 2023 level.
藥明康德公佈的24年第一季度收入爲人民幣79.82億元，同比下降11.0％，歸屬經常性淨利潤爲人民幣20.34億元，同比增長7.3％，調整後非國際財務報告準則淨利潤爲19.13億元人民幣，同比下降18.3％。第一季度收入/調整後的非國際財務報告準則淨收入佔我們2024年全年估計的20.4％/16.8％，均略低於歷史區間。非國際財務報告準則的毛利率下降了2.3個百分點至38.7％，而非國際財務報告準則的淨利潤率在24年第一季度下降了2.1個百分點至24.0％，這是由於COVID商業項目的CDMO收入下降、價格下跌、其測試和生物領域新設施的增加以及ATU板塊成本的上漲。非COVID D&M收入（無錫化學板塊）在24年第一季度顯示出正增長，同比增長1.2％。儘管2024年開局充滿挑戰，但管理局維持了2024年383億至405億元人民幣的收入預期，預計同比增長2.7％至8.6％，其中不包括 COVID-19 商業項目的收入。此外，管理層重申，調整後的非國際財務報告準則淨利潤率將與2023年的水平保持一致。
TIDES business continued to serve as a significant growth driver. In 1Q24, TIDES revenue delivered impressive growth of 43.1% YoY with substantial 110% YoY growth in backlog. Both revenue and backlog maintained a strong momentum from a high base in 2023. Mgt. expects 60% revenue growth for the TIDES business in 2024. Moreover, the additional 22k-liter solid-phase peptide synthesizers commenced operation in Jan 2024, enhancing the total capacity to 32k liters. Plans are in progress to expand new peptide production capacity in Taixing, Jiangsu, to meet robust customer demand.
TIDES業務繼續成爲重要的增長動力。在24年第一季度，TIDES收入實現了令人印象深刻的同比增長43.1％，待辦事項同比大幅增長110％。收入和待辦事項均在2023年的高基數基礎上保持了強勁勢頭。管理部預計，2024年TIDES業務的收入將增長60％。此外，新增的2.2萬升固相肽合成器於2024年1月開始運營，將總容量提高到3.2萬升。擴大江蘇泰興新肽產能的計劃正在進行中，以滿足強勁的客戶需求。
Moderate recovery in clinical CRO&SMO business. In 1Q24, revenue from the Clinical CRO&SMO segment grew by 11.0% YoY, with SMO revenue increasing by 26.4% YoY. The growth aligns with the upward trends reported by several domestic clinical CRO&SMO companies in 2023 and 1Q24. The demand in China's clinical stage pharmaceutical R&D is expected to lead the recovery, mirroring the recovery pattern observed in overseas markets since1Q23.
臨床CRO&SMO業務中度復甦。在24年第一季度，臨床CRO&SMO板塊的收入同比增長11.0％，SMO收入同比增長26.4％。增長與幾家國內臨床CRO&SMO公司在2023年和24年第一季度報告的上升趨勢一致。預計中國臨床階段藥物研發的需求將引領復甦，這反映了自23年第一季度以來海外市場觀察到的復甦模式。
Solid customer relationships amid uncertainty. WiXi AppTec added over 300 new clients in 1Q24, consistent with the level seen in 1Q23. Encouragingly, revenue from global Top 20 pharmaceutical companies reached RMB2.7bn (~34% of total revenue), indicating a YoY increase of 4.2% excluding COVID-19 commercial projects. However, mgt. admitted that the draft of the Biosecure Act has started impacting WuXi ATU in acquiring new clients and orders in the US market.
在不確定性中保持穩固的客戶關係。Wixi AppTec在24年第一季度增加了300多名新客戶，與23年第一季度的水平持平。令人鼓舞的是，全球前20名製藥公司的收入達到27億元人民幣（約佔總收入的34％），表明不包括 COVID-19 商業項目，同比增長4.2％。但是，管理局承認，《生物安全法》的草案已開始影響無錫ATU在美國市場獲得新客戶和訂單。
Maintain BUY. To factor in the uncertainties from geopolitical risks, we cut our TP from RMB67.53 to RMB53.23 (based on a 10-year DCF model with WACC of 10.73% and terminal growth of 2.0%). We forecast revenue to grow by -5.6%/ +10.0%/ +12.5% YoY and adjusted non-IFRS net income to grow by -12.4%/ +10.5%/ +16.4% YoY in 2024E/ 25E/ 26E, respectively.
維持買入。考慮到地緣政治風險的不確定性，我們將目標價從人民幣67.53元下調至人民幣53.23元（基於10年期差價合約模型，WACC爲10.73％，終端增長2.0％）。我們預測，2024E/25E/26E收入將分別同比增長-5.6％/+10.0％/+12.5％，調整後的非國際財務報告準則淨收入將分別同比增長-12.4％/+10.5％/+16.4％。
譯文內容由第三人軟體翻譯。