Wuxi Biologics (Cayman) (2269) AI Stock Analysis

• Market Cap: $100.29B
• Dividend Yield: N/A
• Average Volume (3M): 34.76M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.75
• Revenue Growth: 7.52%
• EPS Growth: -1.92%
• Country: HK
• Employees: 12,575
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): 0.89
• Shares Outstanding: 4,068,680,700
• 10 Day Avg. Volume: 36,773,019
• 30 Day Avg. Volume: 34,755,481
• PEG Ratio: -1.61
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -255.55
• 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: $31.93
• Price Target Upside: 29.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: HK$26.00 ▲(5.48%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

Competitive Position

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.

Market Expansion

The company has expanded its services overseas, reducing reliance on China and increasing its global footprint.

Negative Factors

Future Operations Uncertainty

There is a higher likelihood of the Biosecure Act being implemented due to a shift in political power, which adds uncertainty to WuXi Biologics' future operations in the US market.

Market Sentiment

Despite strong demand for antibody-drug conjugates, the potential passing of the Biosecure Act is causing negative market sentiment, leading to a decline in share prices for Chinese CXOs.

Regulatory Risks

The Biosecure Act is a huge headwind for WuXi Biologics, potentially banning US companies from dealing with them by 2032.

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 showcases impressive financial health with strong revenue and profit growth, efficient cost management, and a stable capital structure. The low leverage and solid cash flow management are strengths, although fluctuations in free cash flow and a gradual increase in liabilities are potential risks.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.12B	18.68B	17.03B	15.27B	10.29B	5.61B
	Gross Profit
6.62B	7.65B	6.83B	6.72B	4.83B	2.53B
	EBIT
3.47B	4.97B	3.95B	6.16B	3.86B	1.76B
	EBITDA
4.60B	6.43B	5.50B	6.22B	4.51B	2.31B
	Net Income Common Stockholders
2.63B	3.36B	3.40B	4.42B	3.39B	1.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
169.10M	10.71B	11.24B	8.71B	11.13B	8.48B
	Total Assets
1.98B	56.98B	56.58B	49.56B	44.03B	28.96B
	Total Debt
1.13B	4.94B	4.56B	4.42B	4.30B	3.33B
	Net Debt
960.34M	-3.34B	-5.11B	-1.97B	-4.71B	-3.76B
	Total Liabilities
1.71B	11.50B	12.56B	13.35B	11.33B	8.06B
	Stockholders Equity
270.47M	41.82B	40.33B	35.05B	32.28B	20.56B
Cash Flow		Free Cash Flow
-346.67M	1.29B	437.20M	-326.72M	-3.09B	-4.14B
	Operating Cash Flow
3.64B	5.22B	4.67B	5.54B	3.43B	1.88B
	Investing Cash Flow
-2.00B	-3.94B	-3.23B	-5.91B	-9.60B	-7.22B
	Financing Cash Flow
-495.00M	-2.75B	1.96B	-2.59B	8.21B	6.57B

Wuxi Biologics (Cayman) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.65
• 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:2269, the sentiment is Positive. The current price of 24.65 is above the 20-day moving average (MA) of 24.17, above the 50-day MA of 23.43, and above the 200-day MA of 18.88, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1530	76 Outperform	$48.45B	21.60	14.19%	1.44%	14.36%	33.22%
2269	74 Outperform	$100.29B	27.80	8.17%	―	7.52%	-1.92%
1177	66 Neutral	HK$81.38B	42.88	6.14%	1.32%	7.63%	-24.23%
1801	61 Neutral	HK$120.81B	―	-0.72%	―	49.33%	90.96%
1877	54 Neutral	HK$32.35B	―	-19.78%	―	25.96%	39.58%
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
9926	50 Neutral	HK$73.83B	―	-8.98%	―	-54.66%	-123.11%

Wuxi Biologics (Cayman) Corporate Events

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.

WuXi Biologics Announces Hong Kong Address Change and Completes Vaccine Facility Transaction

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.

Wuxi Biologics Grants Over 25 Million Restricted Shares to Employees

Wuxi Biologics has announced the approval of a grant of 25,520,857 restricted shares under its Restricted Share Award Scheme, aimed at motivating employees and aligning their interests with the company’s growth. The shares will vest over a period of five years, with a clawback mechanism in place for certain conditions, ensuring the scheme supports long-term engagement and performance.

Wuxi Biologics Reports Robust 2024 Financial Performance Amid Project Expansion

Wuxi Biologics reported strong financial results for 2024, with a 9.6% increase in revenue and a 10.5% rise in net profit, despite a challenging macroeconomic environment. The company added 151 new integrated projects, reaching a total of 817, and saw significant growth in late-phase and non-COVID commercial manufacturing projects. This expansion, particularly through the ‘Win-the-Molecule’ strategy, positions Wuxi Biologics for future revenue growth and strengthens its market presence.

WuXi Biologics to Present 2024 Annual Results via Conference Calls

WuXi Biologics has announced it will hold conference calls on March 26, 2025, to present its 2024 annual financial results and business operations. The company aims to provide shareholders and potential investors with a deeper understanding of its performance and strategic direction. The presentation will be available in both Chinese and English, ensuring equal and timely access to information for all stakeholders. However, the company advises caution as the presentation may contain forward-looking statements subject to risks and uncertainties.