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WuXi XDC Cayman, Inc. (HK:2268)
:2268
Hong Kong Market

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

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HK:2268

WuXi XDC Cayman, Inc.

(2268)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
HK$80.00
▲(13.31% 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. (2268) vs. iShares MSCI Hong Kong ETF (EWH)

WuXi XDC Cayman, Inc. Business Overview & Revenue Model

Company DescriptionWuXi 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 MoneyWuXi 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
88
Very Positive
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
82
Very Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.09B4.05B2.12B990.42M311.13M96.35M
Gross Profit1.68B1.24B559.56M261.08M113.49M8.08M
EBITDA1.42B1.33B420.28M151.75M77.37M7.10M
Net Income1.33B1.07B283.54M155.73M54.93M26.30M
Balance Sheet
Total Assets10.62B9.12B6.74B2.50B879.75M408.47M
Cash, Cash Equivalents and Short-Term Investments4.54B3.97B4.05B734.97M26.32M28.39M
Total Debt1.04B496.43M2.84M77.18M24.59M0.00
Total Liabilities3.18B2.48B1.28B1.02B858.87M32.79M
Stockholders Equity7.44B6.64B5.45B1.48B20.88M375.68M
Cash Flow
Free Cash Flow-99.81M-787.95M-206.51M50.43M7.23M-32.03M
Operating Cash Flow1.54B717.22M332.85M251.82M59.14M20.85M
Investing Cash Flow-5.00B-3.33B-91.23M-1.28B-51.59M-52.42M
Financing Cash Flow967.91M475.36M3.52B1.33B22.34M69.12M

WuXi XDC Cayman, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price70.60
Price Trends
50DMA
70.26
Negative
100DMA
66.69
Negative
200DMA
53.12
Positive
Market Momentum
MACD
-0.27
Negative
RSI
45.26
Neutral
STOCH
69.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2268, the sentiment is Negative. The current price of 70.6 is above the 20-day moving average (MA) of 67.38, above the 50-day MA of 70.26, and above the 200-day MA of 53.12, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2268.

WuXi XDC Cayman, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$88.15B58.9519.62%
71
Outperform
HK$297.96B17.9225.65%1.73%11.55%64.46%
61
Neutral
€48.92B56.342.72%0.82%-3.81%-34.76%
56
Neutral
HK$26.01B59.922.74%0.15%-21.76%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2268
WuXi XDC Cayman, Inc.
66.30
35.10
112.50%
HK:3347
Hangzhou Tigermed Consulting Co., Ltd. Class H
39.70
6.17
18.40%
HK:2359
WuXi AppTec Co., Ltd. Class H
105.10
50.38
92.07%
HK:6127
JOINN Laboratories (China) Co., Ltd. Class H
21.28
12.24
135.40%

WuXi XDC Cayman, Inc. Corporate Events

WuXi XDC Cayman Inc. Announces Extraordinary General Meeting for Strategic Resolutions
Nov 25, 2025

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.

WuXi XDC Cayman Inc. Updates on Continuing Connected Transactions
Nov 25, 2025

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.

WuXi XDC Announces EGM for Key Service Agreement Approvals
Nov 25, 2025

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.

WuXi XDC Completes Share Subscription Transaction
Oct 22, 2025

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.

WuXi XDC Cayman Inc. Approves New Share Issuance in EGM
Oct 9, 2025

WuXi XDC Cayman Inc. announced the successful passing of a resolution at their Extraordinary General Meeting held on October 9, 2025. The resolution involved a subscription agreement with WuXi Biologic (Cayman) Inc. for the issuance of 24,134,000 new shares at HK$58.85 per share, which was unanimously approved by the shareholders. This agreement is expected to strengthen WuXi XDC’s capital base and enhance its strategic positioning in the market.

WuXi XDC Cayman, Inc. Revises Annual Caps and Renews Agreements Amidst Strong Growth
Sep 22, 2025

WuXi XDC Cayman, Inc. has announced revisions to its annual caps for existing connected transactions (CCTs) and plans to renew these agreements for an additional three years, reflecting its strong financial performance and anticipated demand. The company also proposes new CCTs to maximize its manufacturing capacity, subject to regulatory requirements, indicating a strategic move to sustain its growth trajectory and strengthen its market position.

WuXi XDC Cayman Inc. Announces Extraordinary General Meeting for Share Issuance Approval
Sep 21, 2025

WuXi XDC Cayman Inc. has announced an extraordinary general meeting to approve a subscription agreement with WuXi Biologic (Cayman) Inc. The agreement involves issuing 24,134,000 new shares at HK$58.85 each, which is expected to enhance the company’s capital structure and support its growth initiatives.

WuXi XDC Cayman Inc. Announces Register Closure Ahead of EGM
Sep 19, 2025

WuXi XDC Cayman Inc. has announced the closure of its register of members in anticipation of an Extraordinary General Meeting (EGM) scheduled for October 9, 2025. This meeting will allow independent shareholders to consider and potentially approve a Subscription Agreement and related transactions. The register will be closed from October 6 to October 9, 2025, during which no share transfers will be registered, ensuring that only eligible shareholders can attend and vote at the EGM.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 11, 2025