20260804-招银国际-药明康德-603259.SH-Guidance_raised_after_exceptional_2Q26_earnings_6页_1021kb

WuXi AppTec (603259 CH) Summary

Core Content and Key Highlights

WuXi AppTec (603259 CH) reported exceptional performance in 1H26, with strong revenue and adjusted net profit growth despite FX headwinds. The company's full-year guidance was substantially raised, reflecting increased confidence in its growth prospects.

1H26 Performance

• Total Revenue: RMB28.9bn, up 38.9% YoY
• Continuing Operations Revenue: RMB24.5bn, up 48.0% YoY
• Adjusted Net Profit: RMB11.6bn, up 83.2% YoY
• Adjusted Net Margin: Reached a record 40.0%

Backlog and Demand

• Backlog for Continuing Operations: RMB66.4bn as of 30 June 2026
• Backlog/New Bookings Growth: ~30% and >40% YoY on a constant exchange basis

Segment Performance

• Chemistry Segment:
  • Small Molecule D&M Revenue: +72.7% YoY (2Q: +66.9%)
  • TIDES Revenue: +44.3% YoY in 1H26, with 74.9% YoY growth in 2Q26
  • TIDES Growth Guidance: Lifted to ~45% YoY for full year 2026
• Testing Revenue: +31.5% YoY (2Q: +35.1%)
• Safety Assessment Services: +42.8% YoY
• Biology Revenue: +11.2% YoY (2Q: +12.3%)
• Early-Stage R&D Recovery: Global demand improved, especially in new modalities
• AI-Driven Drug Discovery: Seen as a positive factor for early-stage business

Full-Year Guidance and Growth Expectations

• 2026 Revenue: RMB58.5–60.5bn (Previously: RMB51.3–53.0bn)
• Continuing Operations Revenue Growth: 35–39% YoY (Previously: 18–22% YoY)
• Adjusted Net Profit Margin: Expected to remain stable

Financial Forecasts and Valuation

• Adjusted Net Profit Growth: 59.1% in 2026E, 14.9% in 2027E, 13.6% in 2028E
• EPS (Adjusted):
  • 2026E: RMB8.16
  • 2027E: RMB9.16
  • 2028E: RMB10.41
• Consensus EPS:
  • 2026E: RMB6.59
  • 2027E: RMB7.61
  • 2028E: RMB8.90

Valuation Metrics

• Target Price (TP): RMB170.00 (Previously: RMB143.00)
• Upside/Downside: 32.3% from current price (RMB128.50)

Capacity and Expansion

• TIDES Capacity: Targeted to reach 130k L by end-2026, with new workshops in Taixing (online 2027) and Singapore (online 2028)
• Small Molecule Capacity: Targeted at 5mn L by end-2026
• Capex Increase: RMB7.5–8.5bn in 2026, reflecting accelerated overseas construction and early Changzhou start

Margin Trends

DCF Valuation Summary

• Terminal Value: RMB711,329mn
• Terminal Growth Rate: 2.00%
• WACC: 9.39%

Risk-Adjusted DCF Sensitivity Analysis

Analyst Recommendation

• Rating: BUY
• Reason: Strong momentum in small molecule D&M and TIDES, recovery in early-stage business, and raised earnings forecasts

Shareholding and Performance

• Shareholding Structure:
  • HK Investors: 25.9%
  • Ge Li and concerted parties: 16.4%
• Share Performance:
  • 1-Month: +3.5%
  • 3-Month: +17.3%
  • 6-Month: +35.8%

Stock Data

• Market Cap (RMB mn): 383,412.8
• Avg 3 Mths t/o (RMB mn): 6,479.7
• 52-Week High/Low (RMB): 131.50 / 87.62
• Total Issued Shares (mn): 2983.8

Disclosures and Ratings

• CMBIGM Ratings:

  • BUY: Potential return of over 15% over next 12 months
  • HOLD: Potential return of +15% to -10% over next 12 months
  • SELL: Potential loss of over 10% over next 12 months

• Analyst Certification:

  • The analyst certifies that all views reflect personal opinions and no compensation is tied to the report
  • No trading or conflicts of interest within 30 days prior to report release

• Important Disclosures:

  • Information is for general use, not tailored advice
  • Past performance does not guarantee future results
  • CMBIGM is not liable for any reliance on the report
  • The report is for intended recipients only and cannot be reproduced or distributed without consent

Legal and Distribution Notes

• United Kingdom: Report is only for persons within Article 19(5) of the Financial Services and Markets Act 2000 or High Net Worth Companies, etc.
• United States: Not a registered broker-dealer; only for "major US institutional investors"
• Singapore: Distributed by CMBISG, an Exempt Financial Adviser regulated by MAS

Conclusion

WuXi AppTec is experiencing strong growth in 1H26, with improved demand visibility and a significant increase in full-year revenue guidance. The company is leveraging capacity efficiency and expanding its global footprint, which supports its growth trajectory and margin resilience. With raised earnings forecasts and a DCF-based target price of RMB170.00, the stock is currently rated as a BUY, reflecting the analyst's confidence in its future performance.