【行业研究报告】药明康德-To navigate macro uncertainties with a good start in 1Q25

30Apr2025
CMBInternationalGlobalMarkets|EquityResearch|CompanyUpdate
WuXiAppTec(603259CH)
Tonavigatemacrouncertaintieswithagoodstartin1Q25
WuXiAppTecreportedimpressive1Q25financialresults.Revenueincreasedby
21.0%YoYtoRMB9.65bn,withrevenuefromcontinuingoperationsrisingby
23.1%YoYtoRMB9.39bn.Adjustednon-IFRSnetprofitsurgedby40.0%YoYto
RMB2.68bn.Bothrevenueandnetprofitcontinuedthequarterlyimprovement
trendseenthroughout2024,whichfurtheracceleratedsignificantlyin1Q25.As
oftheendof1Q25,theCompany’sbackloggrewby47.1%YoYtoRMB52.33bn.
Despiteongoingmacrouncertainties,mgmt.hasreaffirmeditsfull-yearguidance,
projectinga10–15%YoYincreaseinrevenuefromcontinuingoperationsand
expansionintheadjustednon-IFRSnetprofitmargin.
TIDESbusinessgainedmomentumwithstronggrowth.WuXiAppTec’s
TIDESbusinessexperiencedstronggrowth1Q25,withrevenuesoaring
TIDESbusinessexperiencedstronggrowth1Q25,withrevenuesoaring
187.6%YoYtoRMB2.24bn,anaccelerationfromthe70.1%growthin2024.
Accordingtomgmt.,thegrowthwasdrivenbytheramp-upofnewcapacities
andcontributionsfromoralGLP-1programs.TIDESbacklogmorethan
doubled,increasingby105.5%YoYasof1Q25,providingasolidfoundation
forsustainedgrowth.TheCompanyremainsontracktoexpanditspeptide
capacitytoover100klitersbytheendof2025.Hence,Mgmt.continuedto
expectTIDESrevenuetogrowmorethan60%YoYin2025.
Early-stagebusinessremainedunderpressurewithsignsofmoderate
recovery.RevenuefromBiologysegmentgrew8.2%YoYin1Q25,markinga
secondconsecutivequarterofpositivegrowth,indicatingarecoveryinclient
demandfordrugdiscoveryservices.InChemistrysegment,small-moleculedrug
discoveryrevenuedeclined7.1%YoY,animprovementfromthe28.7%YoY
dropin2024.Testingsegmentremainedaffectedbypricingpressure.Labtesting
revenueslid4.9%YoY(vs.-8.0%YoYin2024),withsafetyassessmentrevenue
falling7.8%YoY(vs.-13.0%YoYin2024).Mgmt.notedthatpricingappearedto
havereachedatrough,althoughameaningfulrecoverywillstilltaketime.
Strengtheningshareholderreturnsamidmarketuncertainties.WuXi
AppTec’sBoardofDirectorshasproposedaseriesofshareholderreturn
initiatives,includingmaintaininga30%annualcashdividendpayoutratio,
issuingaone-timeRMB1bnspecialdividendin2025,introducingtheinterim
dividendplanin2025,andrepurchasingandcancellingRMB1bnA-shares
(announcedonMarch17).Inaddition,theCompanyannouncedasecond
RMB1bnA-sharerepurchaseandcancellationplanonApril8,whichhasnow
commenced.Combined,theproposeddividendsandsharerepurchase
programstotalnearlyRMB6bn,equivalentto62%of2024attributablenet
profit,underscoringWuXiAppTec’sstrongcommitmenttoshareholderreturn.