External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>WuXi Biologics (Wuxi Bio) reported 2023 revenue of RMB17.03bn, up 11.6% YoY, attributable net income of RMB3.40bn, down 23.1% YoY, and adjusted attributable net income of RMB4.70bn, down 4.6% YoY.</li><li>Both revenue and adjusted attributable net income were in-line with our forecasts.</li><li>If excluding COVID revenue, total revenue would increase by 37.7% YoY, and revenue from late-stage and CMO projects would surge by 101.7% YoY. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Biologics (Wuxi Bio) reported 2023 revenue of RMB17.03bn, up 11.6% YoY, attributable net income of RMB3.40bn, down 23.1% YoY, and adjusted attributable net income of RMB4.70bn, down 4.6% YoY.Both revenue and adjusted attributable net income were in-line with our forecasts.If excluding COVID revenue, total revenue would increase by 37.7% YoY, and revenue from late-stage and CMO projects would surge by 101.7% YoY. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Biologics (2269 HK) - Expand Overseas Capacity to Mitigate Risks

<ul><li>WuXi Bio recently announced better-than-expected number of projects signed in 2023 despite the challenging macro environment in the global pharmaceutical industry.</li><li>The company added 132 integrated projects to its pipeline in 2023, largely in line with the record highs during the COVID pandemic.</li><li>Notably, it signed 71 new projects in 4Q23, which mgt. attributed to clients’ sentiment improvement during Nov-Dec 2023. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Bio recently announced better-than-expected number of projects signed in 2023 despite the challenging macro environment in the global pharmaceutical industry.The company added 132 integrated projects to its pipeline in 2023, largely in line with the record highs during the COVID pandemic.Notably, it signed 71 new projects in 4Q23, which mgt. attributed to clients’ sentiment improvement during Nov-Dec 2023. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Biologics (2269 HK) - On the Road to Recovery

<ul><li>WuXi Bio held a conference call on 4 Dec 2023 to update its latest business developments.</li><li>Management expected its 2023 revenue to increase by ~10% YoY and 2023 adj. net profit to decline by a single-digit percentage, compared with its previous guidance of 30% YoY growth in revenue and a 25-26% YoY increase in adj. net profit.</li><li>The latest guidance indicated non-COVID revenue growth of 36%+ YoY in 2023, or c.19% YoY in 2H23, still very impressive given the current market conditions. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Bio held a conference call on 4 Dec 2023 to update its latest business developments.Management expected its 2023 revenue to increase by ~10% YoY and 2023 adj. net profit to decline by a single-digit percentage, compared with its previous guidance of 30% YoY growth in revenue and a 25-26% YoY increase in adj. net profit.The latest guidance indicated non-COVID revenue growth of 36%+ YoY in 2023, or c.19% YoY in 2H23, still very impressive given the current market conditions. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Biologics (2269 HK) – A Transition Year in 2023

<ul><li>Impressive top-line growth in 1H23. WuXi Bio reported 1H23 revenue of RMB8,492mn, up 17.8% YoY, attributable net income of RMB2,268mn, down 10.6% YoY, and attributable adjusted net income of RMB2,838mn, up 0.1% YoY.</li><li>1H23 revenue impressively beat its previous guidance of low-teens growth, mainly attributable to the strong 59.7% YoY growth of non-COVID revenue.</li><li>Despite the sizable capacity additions in 2022 (i.e., MFG7 in Ireland and MFG8 in Shijiazhuang, each with a capacity of 48k L) and the challenging macro environment, WuXi Bio maintained an industry-leading gross profit margin (GPM) of 41.9% in 1H23 vs 47.4% in 1H22 (adjusted GPM of 47.0% in 1H23 vs 53.4% in 1H22). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Impressive top-line growth in 1H23. WuXi Bio reported 1H23 revenue of RMB8,492mn, up 17.8% YoY, attributable net income of RMB2,268mn, down 10.6% YoY, and attributable adjusted net income of RMB2,838mn, up 0.1% YoY.1H23 revenue impressively beat its previous guidance of low-teens growth, mainly attributable to the strong 59.7% YoY growth of non-COVID revenue.Despite the sizable capacity additions in 2022 (i.e., MFG7 in Ireland and MFG8 in Shijiazhuang, each with a capacity of 48k L) and the challenging macro environment, WuXi Bio maintained an industry-leading gross profit margin (GPM) of 41.9% in 1H23 vs 47.4% in 1H22 (adjusted GPM of 47.0% in 1H23 vs 53.4% in 1H22). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Biologics (2269 HK) – Impressive post-pandemic performance

<ul><li>We expect WuXi Bio’s revenue to grow by 11% YoY in 1H23E and attributable adjusted net income to stay flat in 1H23E, mainly due to the relatively high base in 1H22 and the reduced revenue from COVID-related projects.</li><li>In 5M23, the Company added 25 new projects into its pipeline, including 8 external projects under its “Win-the-Molecule” strategy. Despite the sizable capacity additions in 2022 (i.e., MFG7 in Ireland and MFG8 in Shijiazhuang, each with a capacity of 48k L), we forecast WuXi Bio to maintain a satisfying margin level thanks to effective cost controls through the continuous execution of WBS (WuXi Biologics Business System) which targets to improve gross profit margin (GMP) by 300bps in 2023.</li><li>WuXi Bio management maintained its full-year guidance unchanged with revenue growth of 30% YoY and attributable adjusted net income of 26% YoY for 2023E. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect WuXi Bio’s revenue to grow by 11% YoY in 1H23E and attributable adjusted net income to stay flat in 1H23E, mainly due to the relatively high base in 1H22 and the reduced revenue from COVID-related projects.In 5M23, the Company added 25 new projects into its pipeline, including 8 external projects under its “Win-the-Molecule” strategy. Despite the sizable capacity additions in 2022 (i.e., MFG7 in Ireland and MFG8 in Shijiazhuang, each with a capacity of 48k L), we forecast WuXi Bio to maintain a satisfying margin level thanks to effective cost controls through the continuous execution of WBS (WuXi Biologics Business System) which targets to improve gross profit margin (GMP) by 300bps in 2023.WuXi Bio management maintained its full-year guidance unchanged with revenue growth of 30% YoY and attributable adjusted net income of 26% YoY for 2023E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi Biologics (2269 HK) – 2023E growth outlook remains intact

China

WuXi Biologics (Cayman) Inc. is a leading open-access R&D capability and technology platform company serving the pharmaceutical, biotechnology, and medical device industries, with operations in China, U.S., and Iceland.  We provide a broad and integrated portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process.  Our services are designed to help our global partners in shortening the cycle and lowering the cost of drug and medical device R&D through cost-effective and efficient solutions. 

Wuxi Biologics (2269 HK)