Wuxi Biologics (Cayman) (2269) AI Stock Analysis

• Market Cap: HK$116.17B
• Dividend Yield: N/A
• Average Volume (3M): 47.57M
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.74
• Revenue Growth: 7.52%
• EPS Growth: -1.92%
• Country: HK
• Employees: 12,575
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): 0.25
• Shares Outstanding: 4,069,133,500
• 10 Day Avg. Volume: 47,643,050
• 30 Day Avg. Volume: 47,574,528
• PEG Ratio: 1.62
• Price to Book (P/B): 6.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -674.95
• 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$28.57
• Price Target Upside: 0.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: HK$32.00 ▲(12.08%Upside)

Wuxi Biologics achieves a solid overall score driven by strong financial performance and positive technical indicators. However, the relatively high P/E ratio suggests the stock may be overvalued, requiring continued strong earnings growth to sustain its price. The absence of earnings call analysis and corporate events does not affect the score significantly.

Positive Factors

Customer Demand

There is a sustained robust customer demand, with the company's backlog growing to US$18.5bn, and a record increase in new projects, reinforcing its competitive position.

Operational Expansion

WuXi Biologics has expanded its services overseas, reducing reliance on China and increasing its global footprint.

Revenue Growth

WuXi Biologics reported impressive results with a 9.6% increase in revenue and a 9.0% rise in adjusted net profit, indicating strong company performance.

Negative Factors

Long-term Business Risk

The Biosecure Act poses a long-term risk to more than 50% of WuXi Biologics' business in the US.

Market Sentiment

The bill has triggered negative market sentiment on Chinese CXOs, with the share prices of all Chinese CXOs correcting even for those companies without cell and gene therapy exposure.

Regulatory Risks

The proposed US Biosecure Act poses regulatory headwinds, potentially banning US companies from dealing with WuXi Biologics and affecting more than 50% of the company's business.

Wuxi Biologics (Cayman) Business Overview & Revenue Model

Company Description

Wuxi Biologics (Cayman) Inc. is a leading global open-access biologics technology platform company, providing end-to-end solutions for biologics discovery, development, and manufacturing. Headquartered in Wuxi, China, the company operates in the biotechnology and pharmaceutical sectors, offering a comprehensive range of services to its clients, including monoclonal antibodies, bispecific antibodies, fusion proteins, and other biologics. Wuxi Biologics caters to a diverse clientele, including multinational pharmaceutical companies, biotechnology companies, and research institutions worldwide.

How the Company Makes Money

Wuxi Biologics generates revenue through its comprehensive suite of biologics services, which includes discovery, development, and manufacturing services across the biologics supply chain. Its key revenue streams include fees for contract research and development services, contract manufacturing services, and technology licensing. The company engages in strategic partnerships and collaborations with global pharmaceutical and biotech companies to enhance its service offerings and expand its client base. Additionally, Wuxi Biologics benefits from long-term contracts and repeat business from existing clients, which contribute significantly to its earnings.

Wuxi Biologics (Cayman) Financial Statement Overview

Summary

Wuxi Biologics shows strong revenue and profit growth with efficient cost management and a stable capital structure. The balance sheet is solid with low leverage, and cash flow management is robust. However, there are slight concerns about free cash flow fluctuations and increasing liabilities.

Income Statement

Wuxi Biologics has demonstrated strong revenue growth with a compound annual growth rate of over 20% from 2019 to 2024. The gross profit margin consistently exceeds 40%, indicating efficient cost management. The net profit margin has remained stable around 18% to 20%, showcasing solid profitability. EBIT and EBITDA margins are healthy, reflecting strong operational performance. Overall, the income statement highlights robust growth and profitability with minimal weaknesses.

Balance Sheet

The balance sheet of Wuxi Biologics is solid with a low debt-to-equity ratio of approximately 0.12, indicating conservative leverage. The equity ratio is strong, consistently above 70%, suggesting a stable capital structure. Return on equity is impressive, consistently above 8%, reflecting efficient use of shareholders' funds. However, the slight increase in total liabilities over time could be monitored for potential risk.

Cash Flow

Cash flow statements reveal positive trends with free cash flow turning positive in 2024 after previous years of negative figures. Operating cash flow has increased steadily, showing robust cash generation from operations. The free cash flow to net income ratio improved significantly, indicating enhanced cash efficiency. However, the variability in free cash flow over the years suggests some fluctuations in capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.68B	17.03B	15.27B	10.29B	5.61B
Gross Profit	7.65B	6.83B	6.72B	4.83B	2.53B
EBITDA	6.43B	5.50B	6.22B	4.51B	2.31B
Net Income	3.36B	3.40B	4.42B	3.39B	1.69B
Balance Sheet
Total Assets	56.98B	56.58B	49.56B	44.03B	28.96B
Cash, Cash Equivalents and Short-Term Investments	10.71B	11.24B	8.71B	11.13B	8.48B
Total Debt	4.94B	4.56B	4.42B	4.30B	3.33B
Total Liabilities	11.50B	12.56B	13.35B	11.33B	8.06B
Stockholders Equity	41.82B	40.33B	35.05B	32.28B	20.56B
Cash Flow
Free Cash Flow	1.29B	437.20M	-326.72M	-3.09B	-4.14B
Operating Cash Flow	5.22B	4.67B	5.54B	3.43B	1.88B
Investing Cash Flow	-3.94B	-3.23B	-5.91B	-9.60B	-7.22B
Financing Cash Flow	-2.75B	1.96B	-2.59B	8.21B	6.57B

Wuxi Biologics (Cayman) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2269, the sentiment is Positive. The current price of 28.55 is above the 20-day moving average (MA) of 25.79, above the 50-day MA of 25.14, and above the 200-day MA of 20.94, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 89.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2269.

Wuxi Biologics (Cayman) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2269	77 Outperform	HK$116.17B	32.20	8.17%	―	7.52%	-1.92%
1530	69 Neutral	$75.23B	33.52	14.19%	1.59%	14.36%	33.22%
1177	68 Neutral	$123.40B	65.03	6.14%	1.16%	7.63%	-24.23%
1801	61 Neutral	HK$152.22B	―	-0.72%	―	49.33%	90.96%
Sector *	60 Neutral	HK$17.01B	5.47	-7.44%	3.79%	11.55%	-28.15%
1877	59 Neutral	HK$39.34B	―	-19.78%	―	25.96%	39.58%
9926	58 Neutral	HK$126.29B	―	-8.98%	―	-54.66%	-123.11%

Wuxi Biologics (Cayman) Corporate Events

WuXi Biologics Announces Share Placement by Substantial Shareholder

WuXi Biologics (Cayman) Inc. announced that its substantial shareholder, WuXi Biologics Holdings Limited, has entered into a block trade agreement with Morgan Stanley & Co. International PLC to place 82,940,000 existing shares, representing approximately 2.04% of the company’s total issued share capital. This transaction will reduce the shareholding of Biologics Holdings from 14.36% to 12.32%, although it will remain a substantial shareholder. The announcement advises shareholders and potential investors to exercise caution as the placing may or may not proceed.

The most recent analyst rating on (HK:2269) stock is a Hold with a HK$23.40 price target. To see the full list of analyst forecasts on Wuxi Biologics (Cayman) stock, see the HK:2269 Stock Forecast page.

WuXi Biologics Announces AGM Results and Board Changes

WuXi Biologics (Cayman) Inc. announced the results of its Annual General Meeting held on June 6, 2025, where all proposed resolutions were approved by shareholders. Significant changes in the board include the retirement of Dr. Weichang Zhou and the appointment of Dr. Sherry Xuejun Gu as an executive director and member of the Strategy Committee, along with Dr. Jue Chen joining the Nomination Committee. These changes are expected to influence the company’s strategic direction and governance structure.

The most recent analyst rating on (HK:2269) stock is a Hold with a HK$23.40 price target. To see the full list of analyst forecasts on Wuxi Biologics (Cayman) stock, see the HK:2269 Stock Forecast page.

WuXi Biologics Announces Board Composition and Roles

WuXi Biologics (Cayman) Inc. has announced the composition of its board of directors and their roles within the company. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to various committees such as Audit, Remuneration, Nomination, Strategy, and Environmental, Social and Governance. This announcement reflects the company’s commitment to strong governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:2269) stock is a Buy with a HK$30.94 price target. To see the full list of analyst forecasts on Wuxi Biologics (Cayman) stock, see the HK:2269 Stock Forecast page.

Wuxi Biologics Grants Restricted Shares to Motivate Employee

Wuxi Biologics has announced the grant of 64,117 Restricted Shares under its Restricted Share Award Scheme to an independent third-party employee. This initiative is designed to motivate the grantee by offering a personal stake in the company, aligning with Wuxi Biologics’ customary practice of equity-based remuneration. The shares will vest over a five-year period, with a clawback mechanism in place for specific circumstances, ensuring the company’s interests are protected.

The most recent analyst rating on (HK:2269) stock is a Buy with a HK$30.94 price target. To see the full list of analyst forecasts on Wuxi Biologics (Cayman) stock, see the HK:2269 Stock Forecast page.

Wuxi Biologics Announces 2025 Annual General Meeting Agenda

Wuxi Biologics (Cayman) Inc. announced its Annual General Meeting to be held on June 6, 2025, in Shanghai, China. Key agenda items include the reception of audited financial statements for 2024, re-election and appointment of directors, authorization of directors’ remuneration, and re-appointment of auditors. Additionally, a resolution will be considered to grant directors the mandate to issue and allot shares, not exceeding 10% of the total issued shares, under specified conditions. This meeting is significant for stakeholders as it addresses corporate governance and strategic decisions impacting the company’s future operations.

The most recent analyst rating on (HK:2269) stock is a Buy with a HK$30.94 price target. To see the full list of analyst forecasts on Wuxi Biologics (Cayman) stock, see the HK:2269 Stock Forecast page.