＜Research＞Daiwa: WUXI APPTEC (02359.HK) 2Q24 Results in Line; Full-Yr Guidance Unchanged

　　Daiwa highlighted in a research report that WUXI APPTEC (02359.HK) +0.950 (+3.304%) Short selling $8.86M; Ratio 7.301% 's 2Q24 revenue fell 6.5% YoY, in line with market consensus. Net profit declined 27% YoY to RMB2.3 billion, 3% higher than market consensus. Adjusted non-IFRS net profit declined 10.7% YoY.

　　WUXI APPTEC's ATU division recorded a 19% drop in sales and an adjusted gross margin of -27.5%. The company attributed the performance mainly to its commercial projects still in accelerated construction, postponement and cancellation of some projects due to customers' pipeline prioritisation and funding issues, and impact of US Biosecure Act on new business.

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　　Daiwa also pointed out that WUXI APPTEC maintained its full-year targets for FY24, including revenue growth of 2.7% to 8.6% YoY, free cash flow of RMB4 billion to RMB5 billion, capital expenditure of RMB5 billion, and adjusted non-IFRS net profit margins similar to last year's level.

　　Taking into account the above factors, Daiwa rated WUXI APPTEC Buy.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-29 16:25.)

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