＜Research＞UBS: WUXI APPTEC (02359.HK) 1H24 Results Miss; Full-yr Target Unchanged

　　UBS highlighted in a report that WUXI APPTEC (02359.HK) +1.350 (+4.696%) Short selling $8.86M; Ratio 7.301% 's 1H24 revenue fell 8.6% YoY to RMB17.2 billion, slightly lower than the RMB17.3 billion forecast by the broker and the market. Net profit descended 20.2% YoY to RMB4.2 billion, in line with market consensus but weaker than UBS's forecast of RMB4.5 billion. Excluding Covid-related revenue, WUXI APPTEC's interim revenue dropped slightly by 0.7% YoY.

　　By region, revenue excluding Covid projects from the US market fell 1.2% YoY, and its share of total revenue declined by 4 ppts to 62%. Revenue from the China market grew by 2.8% YoY, increasing its revenue contribution by 3 ppts to 20%. According to UBS, despite lower contribution from the US and weaker-than-expected revenue and net profit for the period, WUXI APPTEC's order backlog growth and high growth rate of its new molecule business (TIDES) remained positive.

　　Related NewsBOCI: WUXI APPTEC (02359.HK) 1H24 Results in Line, Order Book on Hand Beats

　　The company has not adjusted its full-year growth guidance. UBS expected the market to remain focused on the progress of the US Biosecure Act, and is looking forward to more details from management at the results meeting.

　　UBS maintained WUXI APPTEC's Neutral rating and H-share target price of $40.1.

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

　　Related NewsCiti: WUXI APPTEC (02359.HK) 1H24 Results in Line with Forecasts

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