WuXi AppTec (02359) reported robust first-quarter 2026 results, with revenue from continuing operations rising 39.4% year on year (YoY) to RMB 9.65 billion. Adjusted non-IFRS net profit surged 71.7% YoY to RMB 4.60 billion, lifting the adjusted net margin by 9.2 percentage points to 37.0%. Total Group revenue, including discontinued activities, reached RMB 12.44 billion.
The margin expansion reflected a 54.9% YoY increase in adjusted non-IFRS gross profit to RMB 6.90 billion and sustained cost discipline. Adjusted operating cash flow rose 21.7% YoY to RMB 3.69 billion, while first-quarter capital expenditure fell to RMB 0.73 billion.
Segment performance remained the key driver:
• WuXi Chemistry delivered revenue of RMB 10.62 billion, up 43.7% YoY, supported by an 80.1% YoY jump in small-molecule development & manufacturing (D&M) revenue to RMB 6.93 billion. Segment adjusted gross margin improved 5.4 percentage points to 52.8%. • The TIDES (oligonucleotide and peptide) platform generated revenue of RMB 2.38 billion, up 6.1% YoY, with full-year growth still expected at roughly 40%. • WuXi Testing recorded revenue of RMB 1.13 billion, up 27.4% YoY, and expanded its adjusted gross margin by 10.8 percentage points to 35.5%, led by 34.8% growth in drug-safety evaluation services. • WuXi Biology’s revenue grew 10.1% YoY to RMB 0.67 billion; adjusted gross margin edged up to 36.7%.
Order visibility strengthened further. The backlog for continuing operations increased 23.6% YoY to RMB 59.77 billion as at 31 March 2026, reflecting steady conversion of discovery projects into late-stage development and commercial programs.
Management reaffirmed full-year 2026 targets: • Total revenue: RMB 51.30–53.00 billion, implying 18–22% YoY growth for continuing operations. • Capital expenditure: RMB 6.50–7.50 billion to support global capacity expansion. • Adjusted free cash flow (excluding tax effects of significant transactions): RMB 10.50–11.50 billion.
To reward shareholders, the board proposes a 30% payout ratio on 2025 earnings, translating into a final dividend of RMB 4.71 billion (after the RMB 1.03 billion interim payout already made). The company also plans to establish a 2026 H-share Incentive Trust of up to HKD 2.50 billion, executed via open-market share purchases, contingent on revenue milestones of RMB 51.30 billion and RMB 53.00 billion.
The company reiterated its focus on its integrated CRDMO model, proactive capacity planning—such as bringing the new Changzhou site online ahead of schedule—and continued operational efficiencies to navigate dynamic market conditions.
Comments