WUXI BIOLOGICS(2269.HK):ROBUST PERFORMANCE IN A CHALLENGING ENVIRONMENT
WUXI BIOLOGICS(2269.HK):ROBUST PERFORMANCE IN A CHALLENGING ENVIRONMENT
Geopolitical uncertainties persist, but so far have limited impact on operations. Following the proposal of the Biosecure Act in early 2024, only one project indicated an intention to transfer out, underpinning the trust that global customers place in the company. We think WuXi Bio's expanding global CRDMO network will help to retain its customers.Wuxi Bio reported 1H24 revenue of RMB8.57bn, up 1.0% YoY, and adjusted attributable net income of RMB2.25bn, down 20.7% YoY. 1H24 revenue and adjusted attributable net income accounted for 47.9% and 44.5% of our full-year forecasts, moderately higher than the historical levels. If excluding COVID revenue, total revenue in 1H24 would increase by 7.7% YoY, while revenue from late-stage and CMO projects would grow by 11.7% YoY. The company added 61 integrated projects in 1H24, a figure only surpassed by that of 1H22 in its history. Total backlog was maintained stable at US$20.11bn as of end-1H24 with backlog within three years growing by 4% YoY. Despite the geopolitical uncertainties and the bumpy recovery of global biotech funding, management has reaffirmed its full- year guidance for 2024, expecting high-single-digit growth in both revenue and adjusted attributable net income.
藥明生物報告了1H24營業收入人民幣85.7億元，同比增長1.0%，調整後的淨利潤爲人民幣22.5億元，同比下降20.7%。1H24營業收入和調整後的淨利潤佔我們全年預測的47.9%和44.5%，比歷史水平稍高。如果不計入COVID營收，1H24總營業收入將同比增長7.7%，而晚期和CMO項目的收入將同比增長11.7%。公司在1H24新增了61個綜合項目，這一數字僅次於其歷史上的1H22。截至1H24年末，總訂單量保持穩定，爲201.1億美元，三年內訂單量同比增長4%。儘管存在地緣政治不確定性和全球生物科技資金的不穩定復甦，管理層已確認了其2024全年指引，預計營收和調整後的淨利潤均將實現高位數位增長。
Robust demand from overseas customers. In 1H24, WuXi Bio added 61 integrated projects, including 52 in preclinical and 5 in Ph1/2 stages, indicating a recovery in customer demand for early clinical and preclinical biologics development. Additionally, the company signed 3 Ph3 projects and 1 commercial stage project through its "win-the-molecule" strategy in 1H24, followed by additional 4 late-stage clinical and commercial projects with a MNC client in July. These project signings underscore the continued confidence global customers have in WuXi Bio's service capabilities and quality, despite the geopolitical uncertainties. Meanwhile, revenue from North America grew 27.5% YoY in 1H24, contributing 58.4% of the total revenue, with most of the growth driven by demand from the US customers.
來自境外客戶的強勁需求。在1H24，藥明生物新增了61個綜合項目，其中包括52個臨床前和5個Ph1/2階段的項目，表明早期臨床和臨床前生物製品研發的客戶需求正在恢復。此外，公司通過其「贏得分子」策略在1H24簽署了3個Ph3項目和1個商業階段項目，緊隨7月份與跨國客戶簽署的額外4個後期臨床和商業項目。這些項目簽約凸顯了全球客戶對藥明生物服務能力和質量的持續信心，儘管存在地緣政治不確定性。與此同時，1H24年北美地區的營收同比增長27.5%，貢獻了總營收的58.4%，其中大部分增長來自美國客戶的需求。
The bioconjugate business emerged as a significant growth driver. Thanks to the robust demand from global customers, revenue of WuXi XDC grew by 68% YoY in 1H24, with its adjusted net profit surging by 147% YoY. In 1H24, WuXi XDC added 26 integrated projects, bringing the total number of ongoing integrated projects in the pipeline to 151, which included 12 Ph3 projects and 9 PPQ projects. The backlog of XDC business increased by 105% to US$842mn, with new orders growing at a similar pace. WuXi XDC is expanding facilities in both Singapore and WuXi city to accommodate the rising customer demand.
生物結合物業務成爲重要的增長動力。由於全球客戶的強勁需求，藥明XDC的營收在1H24年同比增長68%，調整後的淨利潤同比增長147%。1H24年，藥明XDC新增26個綜合項目，使管道中正在進行的綜合項目總數達到151個，其中包括12個Ph3項目和9個PPQ項目。XDC業務的訂單積壓同比增長105%，至8.42億美元，新訂單增長速度相似。藥明XDC正在擴建新加坡和藥明市的設施，以滿足不斷增長的客戶需求。
Geopolitical uncertainties persist, but so far have limited impact on operations. Following the proposal of the Biosecure Act in early 2024, only one project indicated an intention to transfer out, underpinning the trust that global customers place in the company. We think WuXi Bio's expanding global CRDMO network will help to retain its customers.
地緣政治不確定性仍然存在，但目前對業務影響有限。在2024年初提議《生物安全法案》之後，只有一個項目表達了轉移出去的意向，這進一步證明了全球客戶對公司的信任。我們認爲藥明生物不斷擴大的全球CRDMO網絡將有助於保留客戶。
Maintain BUY. To reflect the lasting geopolitical uncertainties, we cut our TP from HK$18.32 to HK$13.58, based on a 10-year DCF model with WACC of 10.95% and terminal growth of 2.0%. We forecast WuXi Bio's revenue to grow by +4.9%/ +11.7%/ +12.7% YoY and attributable adj. net income to increase by -4.1%/ +11.4%/ +12.5% YoY in 2024E/ 25E/ 26E, respectively.
維持買入評級。考慮到持久的地緣政治不確定性，我們將目標價從18.32港元下調至13.58港元，基於10年DCF模型，加權平均資本成本率爲10.95%，終端增長率爲2.0%。我們預計藥明生物的營業收入將分別在2024E、25E、26E實現+4.9%、+11.7%、+12.7%的同比增長，可歸屬於母公司股東的調整淨利潤在2024E、25E、26E分別實現-4.1%、+11.4%、+12.5%的同比增長。
譯文內容由第三人軟體翻譯。
