> **来源：[研报客](https://pc.yanbaoke.cn)** # WuXi XDC (2268 HK) # Strong earnings growth with strategic acquisition to enhance capacity WuXi XDC issued a positive profit alert on its 2025 financial performance, expecting revenue to increase by at least $45\%$ YoY and net profit to grow by more than $38\%$ YoY. Notably, the Company expected adjusted net profit before interest income and expenses to rise by more than $45\%$ YoY and by over $65\%$ YoY in 2025 if excluding the impact of foreign exchange fluctuations. In 2025, WuXi XDC signed a record-high 70 new integrated projects, up by $32\%$ YoY. PPQ projects surged by $125\%$ YoY to reach 18, indicating strong potential for commercial manufacturing. To address growing client demand, WuXi XDC announced a cash offer to acquire at least $60\%$ interests in BioDlink (东曜药业,1875 HK, NR), marking a critical step in further strengthening its manufacturing capacity. Global demand for XDC drug R&D and manufacturing continues to grow rapidly. In 2025, WuXi XDC signed a record-high 70 new integrated projects, up $32\%$ YoY. Among these 70 projects, clients from China and the US were the primary sources. Additionally, 22 of these projects were transferred from external parties, highlighting WuXi XDC's increasing client trust in the global XDC CDMO industry. Furthermore, novel modalities XDC drugs contributed significantly among the 70 newly signed projects, with bispecific ADCs accounted for $\sim 20\%$ , dual-payload ADCs for $\sim 5\%$ , and other types of XDCs for $\sim 17\%$ , demonstrating WuXi XDC's active collaboration with clients in cutting-edge areas of conjugated drug R&Ds. Moreover, PPQ-stage contracts in 2025 increased by $125\%$ YoY to 18, signaling strong growth potential in commercial-stage business. Based on the strong "D-end" enabling capabilities and encouraging commercial business trends, mgmt. of WuXi XDC expects that, by 2030, $20\%$ of the Company's revenue will come from novel XDC projects and another $20\%$ from commercial-stage projects. Acquisition of BioDlink set to strengthen production capacity. WuXi XDC plans to acquire at least \(60\%\) interests in BioDlink through a cash tender offer at HK\\(4.00 per share, representing a \(99\%\) premium over the last closing price of BioDlink on 24 Dec 2025. BioDlink is a leading domestic ADC CDMO service provider with CDMO-related revenue of RMB207mn in 2024. Beyond expanding WuXi XDC's client base, the acquisition will rapidly enhance the Company's drug production capacity to meet strong demand in the moment, particularly for ADC DS and DP, which are currently in short supply. BioDlink operates two mAb facilities with capacities of 500-2,000L/batch, three DS facilities capable of producing over 800kg ADC DS annually, and three DP facilities with an annual capacity exceeding 8mn vials (for comparison, WuXi XDC's DP3 facility has an annual capacity of 8 mn vials). ■ Maintain BUY. We raise our target price to HK$88.0 to reflect the enhanced global competitiveness and positive demand outlook for WuXi XDC. We forecast WuXi XDC's revenue to grow by 45.7%/ 36.6%/ 31.7% YoY and adjusted net income to increase by 34.9%/ 38.4%/ 32.9% YoY in 2025E/ 26E/ 27E, respectively. As the tender offer for BioDlink is still ongoing, we have not yet incorporated any financial impacts from consolidating BioDlink. Earnings Summary <table><tr><td>(YE 31 Dec)</td><td>FY23A</td><td>FY24A</td><td>FY25E</td><td>FY26E</td><td>FY27E</td></tr><tr><td>Revenue (RMB mn)</td><td>2,124</td><td>4,052</td><td>5,906</td><td>8,065</td><td>10,619</td></tr><tr><td>YoY growth (%)</td><td>114.4</td><td>90.8</td><td>45.7</td><td>36.6</td><td>31.7</td></tr><tr><td>Adjusted net profit (RMB m)</td><td>412</td><td>1,174</td><td>1,584</td><td>2,192</td><td>2,914</td></tr><tr><td>YoY growth (%)</td><td>112.1</td><td>184.8</td><td>34.9</td><td>38.4</td><td>32.9</td></tr><tr><td>EPS (Adjusted) (RMB)</td><td>0.38</td><td>0.91</td><td>1.17</td><td>1.62</td><td>2.15</td></tr><tr><td>Consensus EPS (RMB)</td><td>na</td><td>na</td><td>1.30</td><td>1.77</td><td>2.34</td></tr><tr><td>P/E (Adjusted) (x)</td><td>171.6</td><td>72.0</td><td>56.2</td><td>40.6</td><td>30.5</td></tr></table> Source: Company data, Bloomberg, CMBIG estimates # BUY (Maintain) Target Price HK$88.00 (Previous TP HK$74.00) Up/Downside 20.7% Current Price HK$72.90 # China Healthcare Benchen HUANG, CFA huangbenchen@cmbi.com.hk Jill WU, CFA (852) 3900 0842 jillwu@cmbi.com.hk Stock Data <table><tr><td>Mkt Cap (HK$ mn)</td><td>87,366.6</td></tr><tr><td>Avg 3 mths t/o (HK$ mn)</td><td>302.6</td></tr><tr><td>52w High/Low (HK$)</td><td>85.10/27.90</td></tr><tr><td>Total Issued Shares (mn)</td><td>1198.4</td></tr></table> Source:FactSet Shareholding Structure <table><tr><td>WuXi Biologics</td><td>50.7%</td></tr><tr><td>WuXi AppTec</td><td>18.6%</td></tr></table> Source: HKEx Share Performance <table><tr><td></td><td>Absolute</td><td>Relative</td></tr><tr><td>1-mth</td><td>6.0%</td><td>0.9%</td></tr><tr><td>3-mth</td><td>4.7%</td><td>0.8%</td></tr><tr><td>6-mth</td><td>49.5%</td><td>36.6%</td></tr></table> Source:FactSet 12-mth Price Performance Source:FactSet Figure 1: Earnings revision <table><tr><td></td><td colspan="3">New</td><td colspan="3">Old</td><td colspan="3">Diff (%)</td></tr><tr><td>RMB mn</td><td>FY25E</td><td>FY26E</td><td>FY27E</td><td>FY25E</td><td>FY26E</td><td>FY27E</td><td>FY25E</td><td>FY26E</td><td>FY27E</td></tr><tr><td>Revenue</td><td>5,906</td><td>8,065</td><td>10,619</td><td>5,906</td><td>8,014</td><td>10,488</td><td>0.00%</td><td>0.64%</td><td>1.25%</td></tr><tr><td>Gross profit</td><td>2,107</td><td>2,998</td><td>4,032</td><td>2,037</td><td>2,803</td><td>3,721</td><td>3.45%</td><td>6.93%</td><td>8.35%</td></tr><tr><td>Operating profit</td><td>1,806</td><td>2,359</td><td>3,172</td><td>1,812</td><td>2,257</td><td>2,997</td><td>-0.30%</td><td>4.55%</td><td>5.83%</td></tr><tr><td>Non-IFRS net profit</td><td>1,584</td><td>2,192</td><td>2,914</td><td>1,643</td><td>2,176</td><td>2,846</td><td>-3.61%</td><td>0.74%</td><td>2.40%</td></tr><tr><td>Non-IFRS EPS (RMB)</td><td>1.17</td><td>1.62</td><td>2.15</td><td>1.26</td><td>1.68</td><td>2.19</td><td>-7.63%</td><td>-3.47%</td><td>-1.87%</td></tr><tr><td>Gross margin</td><td>35.67%</td><td>37.17%</td><td>37.97%</td><td>34.48%</td><td>34.98%</td><td>35.48%</td><td>+1.19ppt</td><td>+2.19ppt</td><td>+2.49ppt</td></tr><tr><td>Operating margin</td><td>30.58%</td><td>29.25%</td><td>29.87%</td><td>30.67%</td><td>28.16%</td><td>28.58%</td><td>-0.09ppt</td><td>+1.09ppt</td><td>+1.29ppt</td></tr><tr><td>Net margin</td><td>26.82%</td><td>27.18%</td><td>27.44%</td><td>27.82%</td><td>27.16%</td><td>27.13%</td><td>-1.00ppt</td><td>+0.03ppt</td><td>+0.31ppt</td></tr></table> Source: Company data, CMBIGM estimates Figure 2: CMBIGM estimates vs consensus <table><tr><td colspan="4">CMBIGM</td><td colspan="3">Consensus</td><td colspan="3">Diff (%)</td></tr><tr><td>RMB mn</td><td>FY25E</td><td>FY26E</td><td>FY27E</td><td>FY25E</td><td>FY26E</td><td>FY27E</td><td>FY25E</td><td>FY26E</td><td>FY27E</td></tr><tr><td>Revenue</td><td>5,906</td><td>8,065</td><td>10,619</td><td>5,992</td><td>8,122</td><td>10,576</td><td>-1.43%</td><td>-0.70%</td><td>0.41%</td></tr><tr><td>Gross profit</td><td>2,107</td><td>2,998</td><td>4,032</td><td>2,045</td><td>2,818</td><td>3,783</td><td>3.01%</td><td>6.37%</td><td>6.59%</td></tr><tr><td>Operating profit</td><td>1,806</td><td>2,359</td><td>3,172</td><td>1,646</td><td>2,356</td><td>3,197</td><td>9.72%</td><td>0.14%</td><td>-0.78%</td></tr><tr><td>Non-IFRS net profit</td><td>1,584</td><td>2,192</td><td>2,914</td><td>1,621</td><td>2,221</td><td>2,942</td><td>-2.29%</td><td>-1.29%</td><td>-0.95%</td></tr><tr><td>Non-IFRS EPS (RMB)</td><td>1.17</td><td>1.62</td><td>2.15</td><td>1.30</td><td>1.77</td><td>2.34</td><td>-9.92%</td><td>-8.48%</td><td>-8.21%</td></tr><tr><td>Gross margin</td><td>35.67%</td><td>37.17%</td><td>37.97%</td><td>34.13%</td><td>34.70%</td><td>35.77%</td><td>+1.54ppt</td><td>+2.47ppt</td><td>+2.20ppt</td></tr><tr><td>Operating margin</td><td>30.58%</td><td>29.25%</td><td>29.87%</td><td>27.47%</td><td>29.01%</td><td>30.23%</td><td>+3.11ppt</td><td>+0.25ppt</td><td>-0.36ppt</td></tr><tr><td>Net margin</td><td>26.82%</td><td>27.18%</td><td>27.44%</td><td>27.05%</td><td>27.35%</td><td>27.82%</td><td>-0.23ppt</td><td>-0.16ppt</td><td>-0.37ppt</td></tr></table> Source: Bloomberg, CMBIGM estimates Figure 3: Risk-adjusted DCF valuation <table><tr><td>DCF Valuation (in Rmb mn)</td><td>2025E</td><td>2026E</td><td>2027E</td><td>2028E</td><td>2029E</td><td>2030E</td><td>2031E</td><td>2032E</td><td>2033E</td><td>2034E</td></tr><tr><td>EBIT</td><td>1,614</td><td>2,459</td><td>3,272</td><td>4,255</td><td>5,468</td><td>6,947</td><td>8,720</td><td>10,816</td><td>13,253</td><td>16,041</td></tr><tr><td>Tax rate</td><td>14.01%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td><td>15.53%</td></tr><tr><td>EBIT*(1-tax rate)</td><td>1,388</td><td>2,077</td><td>2,764</td><td>3,594</td><td>4,619</td><td>5,868</td><td>7,366</td><td>9,137</td><td>11,195</td><td>13,550</td></tr><tr><td>+ D&A</td><td>172</td><td>235</td><td>309</td><td>387</td><td>479</td><td>590</td><td>719</td><td>870</td><td>1,045</td><td>1,243</td></tr><tr><td>- Change in working capital</td><td>-27</td><td>-219</td><td>-222</td><td>-278</td><td>-344</td><td>-424</td><td>-517</td><td>-625</td><td>-750</td><td>-893</td></tr><tr><td>- Capex</td><td>-1,220</td><td>-1,700</td><td>-1,800</td><td>-1,620</td><td>-1,458</td><td>-1,312</td><td>-1,181</td><td>-1,063</td><td>-957</td><td>-861</td></tr><tr><td>FCFF</td><td>313</td><td>394</td><td>1,051</td><td>2,083</td><td>3,296</td><td>4,722</td><td>6,388</td><td>8,319</td><td>10,533</td><td>13,039</td></tr><tr><td>Terminal value</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>173,491</td></tr><tr><td>Terminal growth rate</td><td>2.00%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>WACC</td><td>9.67%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of Equity</td><td>13.04%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of Debt</td><td>4.00%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equity Beta</td><td>1.10</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Risk Free Rate</td><td>2.00%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Market Risk Premium</td><td>10.00%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Target Debt to Asset ratio</td><td>35.00%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Effective Corporate Tax Rate</td><td>15.00%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>PV of terminal value (HK$bn)</td><td>68,953</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total PV (HK$bn)</td><td>93,694</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net debt (HK$bn)</td><td>-5,723</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equity value (HK$bn)</td><td>99,417</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td># of shares (mn)</td><td>1,255</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Price per share (RMB)</td><td>79.20</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Price per share (HK$)</td><td>88.00</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table> Source: CMBIGM estimates Figure 4: Sensitivity analysis of DCF model <table><tr><td rowspan="2" colspan="2"></td><td colspan="5">WACC</td></tr><tr><td>8.67%</td><td>9.17%</td><td>9.67%</td><td>10.17%</td><td>10.67%</td></tr><tr><td rowspan="5">Terminal growth rate</td><td>3.00%</td><td>119.91</td><td>107.94</td><td>97.85</td><td>89.24</td><td>81.83</td></tr><tr><td>2.50%</td><td>112.09</td><td>101.56</td><td>92.58</td><td>84.85</td><td>78.12</td></tr><tr><td>2.00%</td><td>105.44</td><td>96.07</td><td>88.00</td><td>80.99</td><td>74.85</td></tr><tr><td>1.50%</td><td>99.72</td><td>91.30</td><td>83.98</td><td>77.58</td><td>71.93</td></tr><tr><td>1.00%</td><td>94.75</td><td>87.11</td><td>80.43</td><td>74.54</td><td>69.31</td></tr></table> Source: CMBIGM estimates Financial Summary <table><tr><td>INCOME STATEMENT</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec (RMB mn)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>990</td><td>2,124</td><td>4,052</td><td>5,906</td><td>8,065</td><td>10,619</td></tr><tr><td>Cost of goods sold</td><td>(729)</td><td>(1,564)</td><td>(2,812)</td><td>(3,800)</td><td>(5,067)</td><td>(6,587)</td></tr><tr><td>Gross profit</td><td>261</td><td>560</td><td>1,240</td><td>2,107</td><td>2,998</td><td>4,032</td></tr><tr><td>Operating expenses</td><td>(66)</td><td>(124)</td><td>(90)</td><td>(301)</td><td>(638)</td><td>(860)</td></tr><tr><td>Selling expense</td><td>(9)</td><td>(15)</td><td>(56)</td><td>(129)</td><td>(168)</td><td>(211)</td></tr><tr><td>Admin expense</td><td>(49)</td><td>(124)</td><td>(164)</td><td>(262)</td><td>(317)</td><td>(407)</td></tr><tr><td>R&D expense</td><td>(34)</td><td>(77)</td><td>(100)</td><td>(130)</td><td>(181)</td><td>(270)</td></tr><tr><td>Others</td><td>26</td><td>92</td><td>230</td><td>220</td><td>28</td><td>28</td></tr><tr><td>Operating profit</td><td>195</td><td>436</td><td>1,149</td><td>1,806</td><td>2,359</td><td>3,172</td></tr><tr><td>Net Interest income/(expense)</td><td>(3)</td><td>(1)</td><td>(3)</td><td>(15)</td><td>(3)</td><td>3</td></tr><tr><td>Others</td><td>3</td><td>(75)</td><td>74</td><td>(32)</td><td>100</td><td>100</td></tr><tr><td>Pre-tax profit</td><td>196</td><td>360</td><td>1,220</td><td>1,759</td><td>2,456</td><td>3,275</td></tr><tr><td>Income tax</td><td>(40)</td><td>(76)</td><td>(150)</td><td>(273)</td><td>(381)</td><td>(508)</td></tr><tr><td>After tax profit</td><td>156</td><td>284</td><td>1,070</td><td>1,486</td><td>2,075</td><td>2,766</td></tr><tr><td>Net profit</td><td>156</td><td>284</td><td>1,070</td><td>1,486</td><td>2,075</td><td>2,766</td></tr><tr><td>Adjusted net profit</td><td>194</td><td>412</td><td>1,174</td><td>1,584</td><td>2,192</td><td>2,914</td></tr><tr><td>BALANCE SHEET</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec (RMB mn)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Current assets</td><td>1,402</td><td>5,200</td><td>6,101</td><td>9,869</td><td>11,270</td><td>13,472</td></tr><tr><td>Cash & equivalents</td><td>335</td><td>4,048</td><td>3,540</td><td>6,820</td><td>7,478</td><td>8,829</td></tr><tr><td>Account receivables</td><td>506</td><td>956</td><td>1,800</td><td>1,961</td><td>2,611</td><td>3,350</td></tr><tr><td>Inventories</td><td>63</td><td>47</td><td>119</td><td>112</td><td>149</td><td>194</td></tr><tr><td>Financial assets at FVTPL</td><td>400</td><td>0</td><td>434</td><td>734</td><td>734</td><td>734</td></tr><tr><td>Other current assets</td><td>99</td><td>149</td><td>209</td><td>244</td><td>299</td><td>365</td></tr><tr><td>Non-current assets</td><td>1,094</td><td>1,535</td><td>3,023</td><td>4,071</td><td>5,536</td><td>7,027</td></tr><tr><td>PP&E</td><td>799</td><td>1,246</td><td>2,725</td><td>3,782</td><td>5,256</td><td>6,756</td></tr><tr><td>Intangibles</td><td>51</td><td>53</td><td>45</td><td>37</td><td>28</td><td>20</td></tr><tr><td>Goodwill</td><td>215</td><td>215</td><td>215</td><td>215</td><td>215</td><td>215</td></tr><tr><td>Other non-current assets</td><td>30</td><td>21</td><td>38</td><td>37</td><td>37</td><td>36</td></tr><tr><td>Total assets</td><td>2,496</td><td>6,735</td><td>9,124</td><td>13,940</td><td>16,806</td><td>20,498</td></tr><tr><td>Current liabilities</td><td>1,014</td><td>1,279</td><td>2,466</td><td>3,228</td><td>3,901</td><td>4,679</td></tr><tr><td>Short-term borrowings</td><td>71</td><td>0</td><td>478</td><td>1,078</td><td>1,228</td><td>1,378</td></tr><tr><td>Account payables</td><td>773</td><td>915</td><td>1,409</td><td>1,570</td><td>2,094</td><td>2,722</td></tr><tr><td>Tax payable</td><td>12</td><td>34</td><td>72</td><td>72</td><td>72</td><td>72</td></tr><tr><td>Other current liabilities</td><td>7</td><td>1</td><td>3</td><td>3</td><td>3</td><td>3</td></tr><tr><td>Contract liabilities</td><td>151</td><td>328</td><td>504</td><td>504</td><td>504</td><td>504</td></tr><tr><td>Non-current liabilities</td><td>2</td><td>2</td><td>18</td><td>18</td><td>18</td><td>18</td></tr><tr><td>Obligations under finance leases</td><td>2</td><td>2</td><td>15</td><td>15</td><td>15</td><td>15</td></tr><tr><td>Deferred income</td><td>0</td><td>0</td><td>3</td><td>3</td><td>3</td><td>3</td></tr><tr><td>Other non-current liabilities</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td></tr><tr><td>Total liabilities</td><td>1,016</td><td>1,281</td><td>2,485</td><td>3,246</td><td>3,920</td><td>4,698</td></tr><tr><td>Share capital</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td></tr><tr><td>Capital surplus</td><td>1,480</td><td>5,454</td><td>6,639</td><td>10,694</td><td>12,886</td><td>15,800</td></tr><tr><td>Total shareholders equity</td><td>1,481</td><td>5,454</td><td>6,639</td><td>10,694</td><td>12,887</td><td>15,801</td></tr><tr><td>Total equity and liabilities</td><td>2,496</td><td>6,735</td><td>9,124</td><td>13,940</td><td>16,806</td><td>20,498</td></tr><tr><td>CASH FLOW</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec (RMB mn)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Profit before taxation</td><td>196</td><td>360</td><td>1,220</td><td>1,759</td><td>2,456</td><td>3,275</td></tr><tr><td>Depreciation & amortization</td><td>31</td><td>60</td><td>110</td><td>172</td><td>235</td><td>309</td></tr><tr><td>Tax paid</td><td>(43)</td><td>(48)</td><td>(115)</td><td>(273)</td><td>(381)</td><td>(508)</td></tr><tr><td>Change in working capital</td><td>(6)</td><td>(94)</td><td>(401)</td><td>(27)</td><td>(219)</td><td>(222)</td></tr><tr><td>Others</td><td>74</td><td>56</td><td>(97)</td><td>(47)</td><td>121</td><td>145</td></tr><tr><td>Net cash from operations</td><td>252</td><td>333</td><td>717</td><td>1,584</td><td>2,212</td><td>2,998</td></tr><tr><td>Investing</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Capital expenditure</td><td>(201)</td><td>(529)</td><td>(1,505)</td><td>(1,220)</td><td>(1,700)</td><td>(1,800)</td></tr><tr><td>Others</td><td>(1,078)</td><td>438</td><td>(1,825)</td><td>(1,440)</td><td>0</td><td>0</td></tr><tr><td>Net cash from investing</td><td>(1,280)</td><td>(91)</td><td>(3,330)</td><td>(2,660)</td><td>(1,700)</td><td>(1,800)</td></tr><tr><td>Financing</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net borrowings</td><td>0</td><td>0</td><td>478</td><td>600</td><td>150</td><td>150</td></tr><tr><td>Proceeds from share issues</td><td>0</td><td>3,604</td><td>0</td><td>0</td><td>0</td><td>0</td></tr><tr><td>Others</td><td>1,328</td><td>(82)</td><td>(3)</td><td>2,455</td><td>(3)</td><td>3</td></tr><tr><td>Net cash from financing</td><td>1,328</td><td>3,522</td><td>475</td><td>3,055</td><td>147</td><td>153</td></tr><tr><td>Net change in cash</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash at the beginning of the year</td><td>26</td><td>335</td><td>4,048</td><td>1,925</td><td>3,905</td><td>4,564</td></tr><tr><td>Exchange difference</td><td>8</td><td>(51)</td><td>15</td><td>0</td><td>0</td><td>0</td></tr><tr><td>Cash at the end of the year</td><td>335</td><td>4,048</td><td>1,925</td><td>3,905</td><td>4,564</td><td>5,915</td></tr><tr><td>GROWTH</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>218.3%</td><td>114.4%</td><td>90.8%</td><td>45.7%</td><td>36.6%</td><td>31.7%</td></tr><tr><td>Gross profit</td><td>130.0%</td><td>114.3%</td><td>121.6%</td><td>69.9%</td><td>42.3%</td><td>34.5%</td></tr><tr><td>Operating profit</td><td>148.1%</td><td>123.0%</td><td>163.8%</td><td>57.1%</td><td>30.6%</td><td>34.4%</td></tr><tr><td>Net profit</td><td>183.5%</td><td>82.1%</td><td>277.2%</td><td>38.9%</td><td>39.6%</td><td>33.3%</td></tr><tr><td>Adj. net profit</td><td>152.1%</td><td>112.1%</td><td>184.8%</td><td>34.9%</td><td>38.4%</td><td>32.9%</td></tr><tr><td>PROFITABILITY</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Gross profit margin</td><td>26.4%</td><td>26.3%</td><td>30.6%</td><td>35.7%</td><td>37.2%</td><td>38.0%</td></tr><tr><td>Operating margin</td><td>19.7%</td><td>20.5%</td><td>28.4%</td><td>30.6%</td><td>29.3%</td><td>29.9%</td></tr><tr><td>Adj. net profit margin</td><td>19.6%</td><td>19.4%</td><td>29.0%</td><td>26.8%</td><td>27.2%</td><td>27.4%</td></tr><tr><td>Return on equity (ROE)</td><td>20.7%</td><td>8.2%</td><td>17.7%</td><td>17.1%</td><td>17.6%</td><td>19.3%</td></tr><tr><td>GEARING/LIQUIDITY/ACTIVITIES</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net debt to equity (x)</td><td>(0.2)</td><td>(0.7)</td><td>(0.5)</td><td>(0.5)</td><td>(0.5)</td><td>(0.5)</td></tr><tr><td>Current ratio (x)</td><td>1.4</td><td>4.1</td><td>2.5</td><td>3.1</td><td>2.9</td><td>2.9</td></tr><tr><td>Receivable turnover days</td><td>120.8</td><td>125.6</td><td>124.2</td><td>121.2</td><td>118.2</td><td>115.2</td></tr><tr><td>Inventory turnover days</td><td>21.7</td><td>12.8</td><td>10.7</td><td>10.7</td><td>10.7</td><td>10.7</td></tr><tr><td>Payable turnover days</td><td>398.4</td><td>197.0</td><td>150.8</td><td>150.8</td><td>150.8</td><td>150.8</td></tr><tr><td>VALUATION</td><td>2022A</td><td>2023A</td><td>2024A</td><td>2025E</td><td>2026E</td><td>2027E</td></tr><tr><td>YE 31 Dec</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>P/E (diluted)</td><td>na</td><td>171.6</td><td>72.0</td><td>56.2</td><td>40.6</td><td>30.5</td></tr><tr><td>P/B</td><td>na</td><td>12.2</td><td>11.8</td><td>7.7</td><td>6.4</td><td>5.2</td></tr><tr><td>P/CFPS</td><td>na</td><td>200.4</td><td>108.9</td><td>51.7</td><td>37.0</td><td>27.3</td></tr></table> Source: Company data, CMBIGM estimates. Note: The calculation of net cash includes financial assets. # Disclosures & Disclaimers # Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report. 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