WuXi AppTec (603259) H1 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 16.0% sequentially to RMB 7.98bn, with adjusted non-IFRS net profit up 28.5% to RMB 2.46bn.

• H1 2024 revenue was RMB 18.87bn, down 8.6% year-over-year, but only down 0.7% excluding COVID-19 commercial projects.

• Net profit attributable to shareholders for H1 2024 was RMB 4.24bn, down 20.20% year-over-year; adjusted non-IFRS net profit was RMB 4.37bn, a 14.2% decrease year-over-year.

• Over 500 new customers added in H1, with a total of 6,000+ active customers and a growing small molecule pipeline.

• Backlog reached RMB 43.10bn, up 33.2% year-over-year excluding COVID-19 projects.

Financial highlights

• H1 2024 revenue from top 20 global pharma clients was RMB 6.59bn, up 11.9% year-over-year excluding COVID-19 projects.

• Operating cash flow in H1 2024 was RMB 4.97bn, down 11.29% year-over-year, but up 48.3% year-over-year excluding COVID-19 projects.

• Adjusted non-IFRS gross profit margin for H1 2024 was 39.8%, compared to 41.6% in H1 2023; reported gross margin was 39.37%.

• Free cash flow remained positive, supporting dividends and investments.

• Basic EPS for H1 2024 was RMB 1.46, down 19.34% year-over-year.

Outlook and guidance

• 2024 revenue expected to reach RMB 38.3–40.5bn, with positive growth of 2.7–8.6% excluding COVID-19 projects.

• Adjusted non-IFRS net profit margin expected to remain stable year-over-year.

• Free cash flow for 2024 projected at RMB 4–5bn, with capex of RMB 4–5bn to support global capacity expansion.

• Guidance assumes stable global pharma industry and regulatory environment.