WuXi AppTec (603259) H2 2024 earnings summary

Executive summary

• 2024 revenue and profit achieved steady quarter-on-quarter growth, meeting full-year guidance; Q4 revenue and profit both reached record highs.

• Adjusted non-IFRS net profit margin reached a record 27.0% for 2024, with Q4 adjusted non-IFRS net profit up 20.4% year-over-year.

• Revenue excluding COVID-19 commercial project grew 5.2% year-over-year; no COVID-19 project revenue since Q4 2023.

• Backlog for continuing operations reached RMB49.31 billion, up 47.0% year-over-year.

• Revenue from top 20 global pharma clients grew 24.1% year-over-year, excluding COVID-19 commercial project.

Financial highlights

• 2024 revenue was RMB39.24 billion, down 2.7% year-over-year, but up 5.2% excluding COVID-19 commercial project.

• Adjusted non-IFRS net profit for 2024 was RMB10.58 billion, down 2.5% year-over-year; Q4 adjusted non-IFRS net profit was RMB3.24 billion, up 20.4% year-over-year.

• Adjusted non-IFRS net profit margin for 2024 reached 27.0%, up 0.1 percentage points year-over-year.

• Free cash flow reached a record RMB7.98 billion in 2024.

• Operating cash flow for 2024 was RMB12.64 billion; capex was RMB6.94 billion.

Outlook and guidance

• Continuing operations revenue expected to resume double-digit growth of 10-15% year-over-year in 2025, targeting RMB41.5-43.0 billion.

• Adjusted non-IFRS net profit margin expected to further improve in 2025.

• Capex projected at RMB7.0-8.0 billion in 2025; free cash flow expected at RMB4.0-5.0 billion.

• Plans to maintain a 30% annual cash dividend ratio (~RMB2.8 billion), propose a one-time special dividend of RMB1.0 billion, and repurchase RMB1.0 billion A-shares.

• Launch of 2025 H-share Incentive Trust Plan, with up to HKD2.5 billion in H-shares to be granted upon revenue milestones.