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Wuxi Biologics (Cayman) Inc. (HK:2269)
:2269

Wuxi Biologics (Cayman) (2269) AI Stock Analysis

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HK

Wuxi Biologics (Cayman)

(OTC:2269)

Rating:74Outperform
Price Target:
HK$26.00
▲(3.38%Upside)
Wuxi Biologics demonstrates strong financial performance with robust growth and profitability, which is the primary driver of its score. Technical indicators show neutral momentum, while its valuation reflects a premium on expected growth. The lack of earnings call data and corporate events did not impact this analysis.
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.
Financial Performance
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
Market Dependency
The Biosecure Act poses a long-term risk to more than 50% of WuXi Biologics' business in the US.
Regulatory Risk
The Biosecure Act is a huge headwind for WuXi Biologics, potentially banning US companies from dealing with them by 2032.

Wuxi Biologics (Cayman) (2269) vs. iShares MSCI Hong Kong ETF (EWH)

Wuxi Biologics (Cayman) Business Overview & Revenue Model

Company DescriptionWuXi Biologics (Cayman) Inc. provides end-to-end solutions and services for biologics discovery, development and manufacturing in the People's Republic of China, North America, Europe, and internationally. The company also engages in the provision of consultation services in relation to the biopharmaceutical technology, international sales contracting services, testing and development of testing technologies, sales and marketing services, and biologics clinical and manufacturing services; production and sale of medicals; vaccine CDMO and related business; and material supplier activities. WuXi Biologics (Cayman) Inc. has strategic partnership with ImmuneOncia Therapeutics, Legochem Biosciences Inc, Worg Pharma, OncoC4, and Exelixis Inc. The company was incorporated in 2014 and is headquartered in Wuxi, China.
How the Company Makes MoneyWuxi 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
87
Very Positive
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
82
Very Positive
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
79
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.68B17.03B15.27B10.29B5.61B
Gross Profit7.65B6.83B6.72B4.83B2.53B
EBITDA6.43B5.50B6.22B4.51B2.31B
Net Income3.36B3.40B4.42B3.39B1.69B
Balance Sheet
Total Assets56.98B56.58B49.56B44.03B28.96B
Cash, Cash Equivalents and Short-Term Investments10.71B11.24B8.71B11.13B8.48B
Total Debt4.94B4.56B4.42B4.30B3.33B
Total Liabilities11.50B12.56B13.35B11.33B8.06B
Stockholders Equity41.82B40.33B35.05B32.28B20.56B
Cash Flow
Free Cash Flow1.29B437.20M-326.72M-3.09B-4.14B
Operating Cash Flow5.22B4.67B5.54B3.43B1.88B
Investing Cash Flow-3.94B-3.23B-5.91B-9.60B-7.22B
Financing Cash Flow-2.75B1.96B-2.59B8.21B6.57B

Wuxi Biologics (Cayman) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.15
Price Trends
50DMA
24.09
Positive
100DMA
23.80
Positive
200DMA
19.97
Positive
Market Momentum
MACD
0.21
Positive
RSI
50.86
Neutral
STOCH
46.90
Neutral
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 25.15 is below the 20-day moving average (MA) of 25.52, above the 50-day MA of 24.09, and above the 200-day MA of 19.97, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 46.90 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$102.33B28.378.17%7.52%-1.92%
65
Neutral
¥345.58B10.59-2.88%2.67%11.80%-6.84%
$12.07B49.576.14%1.52%
$16.27B-0.72%
$6.94B24.2114.19%0.15%
55
Neutral
HK$83.03B-8.98%-54.66%-123.11%
51
Neutral
HK$33.78B-19.78%25.96%39.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2269
Wuxi Biologics (Cayman)
25.15
13.97
124.96%
SBMFF
Sino Biopharmaceutical
0.67
0.33
97.06%
IVBXF
Innovent Biologics
10.08
5.37
114.01%
TRSBF
3SBio
2.90
2.08
253.66%
HK:9926
Akeso, Inc.
92.50
55.35
148.99%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
20.90
9.42
82.06%

Wuxi Biologics (Cayman) Corporate Events

WuXi Biologics Announces Share Placement by Substantial Shareholder
Jun 15, 2025

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
Jun 6, 2025

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
Jun 6, 2025

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
Jun 5, 2025

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
May 15, 2025

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.

WuXi Biologics Announces Hong Kong Address Change and Completes Vaccine Facility Transaction
Apr 1, 2025

WuXi Biologics (Cayman) Inc. has announced a change in its principal place of business in Hong Kong, effective April 1, 2025. Additionally, the company has completed an asset transaction related to its Vaccines Ireland Facility, with a total consideration of approximately US$499.63 million. This transaction is expected to enhance WuXi Biologics’ capabilities in vaccine production, potentially strengthening its position in the global biologics market.

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: May 29, 2025