20220728-招银国际-药明康德-603259.SH-Growth_momentum_to_accelerate_in_2H22E_6页_964kb

报告摘要

WuXi AppTec (603259 CH) Summary

Core Content

WuXi AppTec reported strong financial results for 1H22, with revenue reaching RMB17.8bn, up 69% YoY. The management increased its 2022E revenue growth guidance to 68-72% YoY from 65-70% YoY, supported by a solid RMB35bn backlog. The company's attributable recurring net income and adjusted Non-IFRS net income also showed significant growth of 81% and 76%, respectively.

Main Points

1H22 Performance:
- Revenue: RMB17.8bn (+69% YoY)
- Attributable recurring net income: RMB3.8bn (+81% YoY)
- Attributable adjusted Non-IFRS net income: RMB4.3bn (+76% YoY)
- Revenue and adjusted Non-IFRS net income accounted for 46% and 51% of full-year 2022E estimates, respectively.
- Under constant currency, revenue growth would have accelerated to 76% YoY and adjusted Non-IFRS GPM would have improved to 38.1%.
WuXi Chemistry:
- Delivered 102% YoY revenue growth in 1H22, driven by chemical CDMO services (+145% YoY).
- Revenue from commercial-stage COVID-19 projects: ~RMB4.2bn, accounting for ~32% of WuXi Chemistry revenue.
- Excluding these projects, the segment still achieved 37% YoY growth, indicating sustainable non-COVID demand.
- Forecasted to grow 104% YoY in 2022E, 11% in 2023E, and 30% in 2024E, with a 43% CAGR from FY21 to FY24E.
Cell and Gene Therapies (CGT) CDMO Segment:
- Turned positive with 36% YoY growth in 1H22, reversing a 3% YoY decline in 2021.
- The number of CGT pipeline projects increased from 57 to 67.
- The TESSA technology, a revolutionary AAV manufacturing solution, is gaining interest from global clients, with six biotech/pharma companies testing it and one initiating licensure.
Globalization Strategy:
- Expanding large-scale drug product manufacturing facilities in Delaware, US.
- Planning to invest US$1.4bn over the next 10 years to build full-suite R&D and manufacturing capabilities in Singapore, with operations expected to commence by 2025/26.
Investment Recommendation:
- Maintained a "BUY" rating with a target price of RMB185.17, based on a 10-year DCF model (WACC: 10.94%, terminal growth rate: 3.0%).

Key Financial Metrics

Metric	FY20A	FY21A	FY22E	FY23E	FY24E
Revenue (RMB mn)	16,535.4	22,902.4	39,477.2	45,784.6	59,727.0
YoY growth (%)	28.5%	38.5%	72.4%	16.0%	30.5%
Net profit (RMB mn)	2,960.2	5,097.2	9,452.7	10,011.7	13,088.7
YoY growth (%)	59.6%	72.2%	85.5%	5.9%	30.7%
Adjusted net profit (RMB mn)	3,637.2	5,131.2	8,898.3	10,466.7	13,831.0
EPS (Adjusted) (RMB)	1.6	1.8	3.0	3.5	4.7
Consensus EPS (RMB)	na	na	2.8	3.4	4.3
P/E (x)	60.5	77.0	31.8	30.0	22.9

Financial Growth and Profitability

Growth Rates (YoY):
- Revenue: 72.4% (2022E), 16.0% (2023E), 30.5% (2024E)
- Gross profit: 72.7% (2022E), 15.6% (2023E), 30.5% (2024E)
- Operating profit: 108.3% (2022E), 17.3% (2023E), 32.8% (2024E)
- Net profit: 85.6% (2022E), 5.9% (2023E), 30.7% (2024E)
- Adjusted net profit: 73.4% (2022E), 17.6% (2023E), 32.1% (2024E)
Profitability Margins:
- Gross margin: 36.4% (2022E), 36.2% (2023E), 36.3% (2024E)
- Operating margin: 23.3% (2022E), 23.6% (2023E), 24.0% (2024E)
- Net margin: 23.9% (2022E), 21.9% (2023E), 21.9% (2024E)
- Adjusted net margin: 22.5% (2022E), 22.9% (2023E), 23.2% (2024E)
ROA and ROE:
- ROA: 14.5% (2022E), 13.7% (2023E), 15.4% (2024E)
- ROE: 21.0% (2022E), 19.2% (2023E), 21.4% (2024E)

Valuation Metrics

Metric	2022E	2023E	2024E
P/E (x)	31.8	30.0	22.9
P/B	6.6	5.7	4.9
P/CFPS	42.9	28.7	24.0
Dividend Yield (%)	0.9%	1.0%	1.3%

Analyst Ratings and Disclaimers

CMBIGM Rating: BUY
Target Price: RMB185.17
Discounted Cash Flow (DCF) Valuation:
- Terminal value: RMB1,163,087 mn
- Equity value: RMB547,506 mn
- Net debt: RMB-1,145 mn
- Current Price: RMB96.36
- Upside: 92.2%
Important Disclosures:
- The report is not an offer or solicitation to buy or sell securities.
- CMBIGM does not guarantee the accuracy or completeness of the information.
- Past performance is not indicative of future results.
- Investors should consult with a financial advisor for their own investment decisions.

Share Performance and Structure

Market Cap (RMB mn): 300,292.0
Average 3-month turnover (RMB mn): 100.1
52-week High/Low (RMB): 160.95 / 83.07
Total Issued Shares (mn): 2,956.8
Shareholding Structure:
- HK investors: 20.1%
- Ge Li and concerted parties: 19.1%
Share Performance (3-month):
- Absolute: -0.9%
- Relative: -12.7%

Analyst Certification

The research analyst certifies that the views expressed reflect their personal opinions and are not influenced by any conflicts of interest.
The analyst confirms no trading in the stock(s) covered in the report within 30 days prior to its release.
The report is for the use of intended recipients only and cannot be reproduced or distributed without prior written consent.

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