WuXi AppTec (603259) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was RMB 10.46 billion, up 13.0% sequentially but down 1.96% YoY; adjusted non-IFRS net profit rose 20.9% QoQ, while net profit attributable to shareholders was RMB 2.29 billion, down 17.02% YoY.

• Q1–Q3 2024 revenue reached RMB 27.70 billion, down 6.23% YoY; adjusted non-IFRS net profit at RMB 8.17 billion, net profit attributable to shareholders at RMB 6.53 billion, down 19.11% YoY.

• Added 800+ new customers in Q1–Q3, maintaining a base of 6,000+ active customers; backlog reached RMB 43.82 billion, up 35.2% YoY.

• Revenue from top 20 global pharma clients grew 23.1% YoY (excluding COVID-19 projects); diversified revenue streams across US, Europe, China, and Asia.

Financial highlights

• Adjusted non-IFRS gross profit margin for Q1–Q3 at 40.9%; gross margin for the first nine months was approximately 40.6%.

• Adjusted non-IFRS net profit margin for Q1–Q3 at 26.5%; net profit margin for the first nine months was approximately 23.6%.

• Basic EPS for the first nine months was RMB 2.25, down from RMB 2.75 YoY.

• Operating cash flow for the first nine months was RMB 8.38 billion, down 18.78% YoY; free cash flow for Q1–Q3 at RMB 5.56 billion.

• Total assets as of September 30, 2024, were RMB 74.24 billion, up 0.77% from year-end 2023.

Outlook and guidance

• 2024 revenue expected at RMB 38.3–40.5 billion, with 2.7–8.6% growth excluding COVID-19 commercial projects.

• TIDES business expected to grow over 60% for the full year; TIDES backlog up 196% YoY.

• Adjusted non-IFRS net profit margin projected to remain stable YoY; free cash flow guidance at RMB 6–7 billion for 2024.

• Company continues to expand global capacity, invest in talent, dividends, share buybacks, and new Singapore R&D/manufacturing base (Phase I operational in 2027).