20240320-招银国际-药明康德-603259.SH-Best_effort_to_ensure_business_continuity_6页_1mb

WuXi AppTec reported strong performance in 2023 with revenue of RMB40.3 billion, up 2.5% year-over-year, and attributive adjusted non-IFRS net income of RMB10.9 billion, up 15.5% YoY. Excluding COVID-19 project revenue, overall growth was 25.6% YoY. For 2024, management expects revenue to range from RMB38.3 to RMB40.5 billion, a decrease of 5.1% to 0.4% YoY, but excluding COVID-19 related revenue, growth could be up to 8.6% YoY. Operational efficiencies, new capacity, and FX impacts are expected to maintain net profit margin stability.

Key business developments include 64.4% YoY growth in TIDES revenue and a 226% increase in TIDES backlog, along with revenue growth in drug safety assessment and SMO segments. ATU is advancing commercial projects, while DDSU gained NMPA approvals for customer drugs. The company emphasized no political ties and robust customer relationships, reinforced by the grandfather clause in US legislation. Additionally, WuXi AppTec announced a share buyback, cancelling RMB1.2 billion in H-share awards and repurchasing more A-shares, showing confidence in its future.

Analysts maintain a BUY rating with a reduced target price from RMB116.01 to RMB67.53, reflecting 32.9% downside. Forecasts project revenue growth of -3.0% to 11.1% YoY and adjusted non-IFRS net income growth of -5.5% to 12.9% YoY for the next three years. The company has a market cap of RMB149.0 billion, and shares experienced volatility in 2023.

The report includes standard analyst certifications and important disclosures, noting risks, conflicts of interest, and that past performance does not guarantee future results.投资决策应独立进行，并咨询专业顾问。

This summary covers the key findings from the report.