WuXi XDC Cayman, Inc. (2268) AI Stock Analysis

• Market Cap: HK$91.51B
• Dividend Yield: N/A
• Average Volume (3M): 6.66M
• Price to Earnings (P/E): 59.4
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 2,041
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.64
• Shares Outstanding: 1,255,241,000
• 10 Day Avg. Volume: 10,688,598
• 30 Day Avg. Volume: 6,656,062
• PEG Ratio: 0.13
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 8.51
• P/FCF Ratio: -43.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$86.92
• Price Target Upside: 22.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$80.00 ▲(12.91% Upside)

WuXi XDC Cayman, Inc. benefits from strong financial performance and positive technical indicators. However, the high P/E ratio and negative free cash flow are notable concerns. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for WuXi XDC's services, reflecting its competitive position and market expansion potential.

Profitability

High profitability margins suggest efficient operations and strong pricing power, supporting long-term financial health and reinvestment capacity.

Balance Sheet Health

Low leverage provides financial stability and flexibility, allowing WuXi XDC to invest in growth opportunities without significant debt constraints.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow can strain liquidity, limiting the company's ability to fund operations and growth initiatives without external financing.

Capital Expenditures

High capital expenditures, while potentially growth-oriented, can pressure cash reserves and necessitate careful financial management to avoid liquidity issues.

Cash Flow Conversion

While cash conversion is reasonable, it suggests room for improvement in translating earnings into cash, which is crucial for sustaining operations and investments.

WuXi XDC Cayman, Inc. Business Overview & Revenue Model

Company Description

WuXi XDC Cayman Inc., an investment holding company, operates as a contract research, development, and manufacturing organization in China, North America, Europe, and internationally. It engages in the discovery, research, development, and manufacture of antibody drug conjugates, bioconjugates, monoclonal antibody intermediates, and payload-linkers associated with bioconjugates. The company was founded in 2013 and is headquartered in Wuxi, China. WuXi XDC Cayman Inc. operates as a subsidiary of WuXi Biologics (Cayman) Inc.

How the Company Makes Money

WuXi XDC generates revenue primarily through its contract development and manufacturing services, which are provided to pharmaceutical and biotechnology companies. The company charges fees for various services including research and development, clinical trial management, and commercial production. Key revenue streams include project-based contracts, retainer agreements, and milestone payments associated with the development and commercialization of client products. Additionally, WuXi XDC may engage in strategic partnerships and collaborations with other firms to enhance its service offerings, which could provide additional revenue opportunities. Factors contributing to its earnings include the growing demand for outsourced drug development services, increased investment in biopharmaceutical innovation, and a robust portfolio of established client relationships.

WuXi XDC Cayman, Inc. Financial Statement Overview

Summary

WuXi XDC Cayman, Inc. shows strong revenue and profit growth with efficient operations and a robust equity position. However, negative free cash flow due to significant capital expenditures poses potential liquidity challenges.

Income Statement

WuXi XDC Cayman, Inc. has demonstrated impressive revenue growth, with a 90.8% increase from 2023 to 2024 and a substantial gross profit margin of 30.6% in 2024. The net profit margin stands at a robust 26.4%, indicating strong profitability. EBIT and EBITDA margins are also strong at 23.4% and 32.9%, respectively, underscoring efficient operations.

Balance Sheet

The company has a solid equity position with a debt-to-equity ratio of 0.07, indicating low leverage. The return on equity is strong at 16.1%, reflecting effective use of shareholder funds. An equity ratio of 72.8% suggests a stable financial foundation with a substantial portion of assets funded by equity.

Cash Flow

Operating cash flow has increased, yet the free cash flow remains negative at -$787.95 million due to significant capital expenditures. However, the operating cash flow to net income ratio of 0.67 reflects reasonable cash conversion from earnings, while the free cash flow to net income ratio is negative, indicating pressure on cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.09B	4.05B	2.12B	990.42M	311.13M	96.35M
Gross Profit	1.68B	1.24B	559.56M	261.08M	113.49M	8.08M
EBITDA	1.42B	1.33B	420.28M	151.75M	77.37M	7.10M
Net Income	1.33B	1.07B	283.54M	155.73M	54.93M	26.30M
Balance Sheet
Total Assets	10.62B	9.12B	6.74B	2.50B	879.75M	408.47M
Cash, Cash Equivalents and Short-Term Investments	4.54B	3.97B	4.05B	734.97M	26.32M	28.39M
Total Debt	1.04B	496.43M	2.84M	77.18M	24.59M	0.00
Total Liabilities	3.18B	2.48B	1.28B	1.02B	858.87M	32.79M
Stockholders Equity	7.44B	6.64B	5.45B	1.48B	20.88M	375.68M
Cash Flow
Free Cash Flow	-99.81M	-787.95M	-206.51M	50.43M	7.23M	-32.03M
Operating Cash Flow	1.54B	717.22M	332.85M	251.82M	59.14M	20.85M
Investing Cash Flow	-5.00B	-3.33B	-91.23M	-1.28B	-51.59M	-52.42M
Financing Cash Flow	967.91M	475.36M	3.52B	1.33B	22.34M	69.12M

WuXi XDC Cayman, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2268, the sentiment is Positive. The current price of 70.85 is above the 20-day moving average (MA) of 67.44, above the 50-day MA of 67.76, and above the 200-day MA of 56.42, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 75.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2268.

WuXi XDC Cayman, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2268	73 Outperform	HK$91.51B	59.41	19.62%	―	―	―
2359	69 Neutral	HK$340.20B	21.45	25.65%	1.84%	11.55%	64.46%
3347	64 Neutral	HK$55.29B	68.50	2.72%	0.80%	-3.81%	-34.76%
6127	61 Neutral	HK$33.23B	78.39	2.74%	0.15%	-21.76%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

WuXi XDC Cayman, Inc. Corporate Events

WuXi XDC Cayman Inc. Secures Shareholder Approval for Strategic Agreements

WuXi XDC Cayman Inc. announced the successful passing of all proposed resolutions at its extraordinary general meeting held on December 12, 2025. These resolutions included the approval of revised service fees and new master services agreements with WuXi Biologics and WuXi AppTec, which are set to enhance the company’s operational framework and strategic partnerships. The unanimous approval by shareholders indicates strong support for the company’s future plans and collaborations, potentially strengthening its position in the biotechnology sector.

The most recent analyst rating on (HK:2268) stock is a Buy with a HK$90.00 price target. To see the full list of analyst forecasts on WuXi XDC Cayman, Inc. stock, see the HK:2268 Stock Forecast page.

WuXi XDC Cayman Inc. Announces Extraordinary General Meeting for Strategic Resolutions

WuXi XDC Cayman Inc. has announced an extraordinary general meeting to be held on December 12, 2025, to discuss and approve several resolutions related to service agreements with WuXi Biologics and WuXi AppTec. These resolutions include revised maximum service fees and new master services agreements, which are expected to impact the company’s operational framework and strategic partnerships.

The most recent analyst rating on (HK:2268) stock is a Hold with a HK$63.30 price target. To see the full list of analyst forecasts on WuXi XDC Cayman, Inc. stock, see the HK:2268 Stock Forecast page.

WuXi XDC Cayman Inc. Updates on Continuing Connected Transactions

WuXi XDC Cayman Inc., a company incorporated in the Cayman Islands, has announced revisions to its annual caps for relevant Continuing Connected Transactions (CCT) agreements, the renewal of existing CCT agreements, and the introduction of new CCT agreements. The company has provided supplemental information regarding its pricing policies for the Conjugation Discovery Services Agreement, ensuring that service fees are determined through arm’s length negotiation and are in line with market rates. This move is intended to ensure that transactions are conducted on normal commercial terms and are in the interests of the company and its shareholders.

The most recent analyst rating on (HK:2268) stock is a Hold with a HK$63.30 price target. To see the full list of analyst forecasts on WuXi XDC Cayman, Inc. stock, see the HK:2268 Stock Forecast page.

WuXi XDC Announces EGM for Key Service Agreement Approvals

WuXi XDC Cayman Inc. has announced the closure of its register of members in anticipation of an extraordinary general meeting (EGM) scheduled for December 12, 2025. This meeting will allow independent shareholders to vote on the revision and renewal of key service agreements related to antibodies and payload-linkers, which are significant for the company’s ongoing operations and strategic positioning in the biotechnology sector.

The most recent analyst rating on (HK:2268) stock is a Hold with a HK$63.30 price target. To see the full list of analyst forecasts on WuXi XDC Cayman, Inc. stock, see the HK:2268 Stock Forecast page.

WuXi XDC Completes Share Subscription Transaction

WuXi XDC Cayman Inc. has completed a connected transaction involving the subscription of new shares under a specific mandate. On October 22, 2025, WuXi Biologics successfully subscribed to 24,134,000 new shares at a price of HK$58.85 per share, resulting in net proceeds of approximately HK$1,414.47 million. This transaction has increased WuXi Biologics’ shareholding in the company from 49.75% to 50.72%, slightly altering the company’s shareholding structure.

The most recent analyst rating on (HK:2268) stock is a Hold with a HK$63.30 price target. To see the full list of analyst forecasts on WuXi XDC Cayman, Inc. stock, see the HK:2268 Stock Forecast page.