Wuxi Biologics (Cayman) (2269) AI Stock Analysis

• Market Cap: $155.34B
• Dividend Yield: N/A
• Average Volume (3M): 32.67M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.66
• Revenue Growth: 16.90%
• EPS Growth: 63.11%
• Country: HK
• Employees: 12,575
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.61
• Shares Outstanding: 4,133,579,000
• 10 Day Avg. Volume: 33,789,006
• 30 Day Avg. Volume: 32,668,415
• PEG Ratio: 0.00
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 3.60
• P/FCF Ratio: 52.28
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 5.17
• Enterprise Value/Gross Profit: 12.12
• Enterprise Value/Ebitda: 14.01
• 1Y Price Target: $38.61
• Price Target Upside: -2.93% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$40.00 ▲(0.55% Upside)

Wuxi Biologics' strong financial performance is a significant positive factor, showcasing robust growth and a stable financial position. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Sustained Revenue Growth

A >20% CAGR from 2019–2024 signals durable demand for CDMO services and successful client acquisition. Persistent top-line expansion supports scale economics, long-term contracts, and reinvestment capacity, strengthening competitive position over multi-quarter horizons.

Healthy Profitability Margins

Consistently high gross margins (>40%) and stable net margins (~18–20%) indicate structural pricing power and operational efficiency in biologics manufacturing. Strong margins enhance cash generation, fund capex/R&D, and provide resilience against pricing or cost cycles over the medium term.

Conservative Capital Structure

Debt-to-equity ~0.12 and equity ratio >70% reflect a conservative balance sheet, lowering refinancing and covenant risk. This financial flexibility supports strategic capex, capacity buildouts, or selective M&A without stressing solvency, enhancing long-term operational resilience.

Negative Factors

Free Cash Flow Variability

While FCF turned positive in 2024, historical variability and capex-driven swings reduce predictability of internal funding. Irregular free cash can force reliance on external capital for large investments, complicating steady deleveraging, shareholder distributions, or discretionary strategic spending.

Rising Total Liabilities

A gradual increase in total liabilities, even from a low base, warrants monitoring; if liabilities grow faster than cash generation it can erode the conservative leverage profile, constrain financial flexibility, and elevate interest or covenant risks during industry slowdowns.

Limited Income Appeal (No Dividend)

No dividend yield means returns are driven mainly by growth and capital appreciation. For long-term investors seeking income or total-return predictability, this increases dependence on sustained high growth and may necessitate future payouts or buybacks to broaden investor base.

Wuxi Biologics (Cayman) Business Overview & Revenue Model

Company Description

WuXi 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 Money

Wuxi Biologics generates revenue primarily through its contract development and manufacturing organization (CDMO) services, which include process development, clinical and commercial manufacturing of biologics. The company typically enters into long-term contracts with clients, providing steady revenue streams from service fees and milestone payments. Key revenue streams also include upfront fees for services, royalties from product sales, and income from collaborations and partnerships with pharmaceutical firms. Significant partnerships with major pharmaceutical companies and biotech firms further bolster its earnings, as these collaborations often lead to increased demand for its services and shared revenue opportunities.

Wuxi Biologics (Cayman) Financial Statement Overview

Summary

Wuxi Biologics demonstrates strong financial health with robust revenue and profit growth, efficient cost management, and a stable capital structure. The low debt-to-equity ratio and positive cash flow trends further enhance its financial position, despite some fluctuations in free cash flow and a gradual increase in 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.05B	18.68B	17.03B	15.27B	10.29B	5.61B
Gross Profit	8.55B	7.65B	6.83B	6.72B	4.83B	2.53B
EBITDA	7.41B	6.43B	5.50B	6.22B	4.51B	2.31B
Net Income	4.20B	3.36B	3.40B	4.42B	3.39B	1.69B
Balance Sheet
Total Assets	60.44B	56.98B	56.58B	49.56B	44.03B	28.96B
Cash, Cash Equivalents and Short-Term Investments	12.54B	10.71B	11.24B	8.71B	11.13B	8.48B
Total Debt	5.11B	4.94B	4.56B	4.42B	4.30B	3.33B
Total Liabilities	11.37B	11.50B	12.56B	13.35B	11.33B	8.06B
Stockholders Equity	44.95B	41.82B	40.33B	35.05B	32.28B	20.56B
Cash Flow
Free Cash Flow	1.76B	1.29B	437.20M	-326.72M	-3.09B	-4.14B
Operating Cash Flow	5.72B	5.22B	4.67B	5.54B	3.43B	1.88B
Investing Cash Flow	-4.10B	-3.94B	-3.23B	-5.91B	-9.60B	-7.22B
Financing Cash Flow	-2.36B	-2.75B	1.96B	-2.59B	8.21B	6.57B

Wuxi Biologics (Cayman) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 39.78 is above the 20-day moving average (MA) of 33.92, above the 50-day MA of 33.35, and above the 200-day MA of 30.41, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 76.65 is Negative, neither overbought nor oversold. The STOCH value of 93.95 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
1530	68 Neutral	HK$68.78B	26.48	15.34%	0.95%	7.51%	44.09%
2269	63 Neutral	$155.34B	35.69	9.79%	―	16.90%	63.11%
1801	61 Neutral	$155.16B	120.29	8.41%	―	52.78%	―
1177	54 Neutral	HK$122.51B	30.96	11.72%	1.40%	13.69%	50.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9926	43 Neutral	HK$116.16B	-118.47	-14.40%	―	33.46%	-7.60%
1877	38 Underperform	HK$39.59B	-23.45	-15.06%	―	38.56%	48.26%

Wuxi Biologics (Cayman) Corporate Events

WuXi Biologics Highlights Strong 2025 Pipeline and Growth Ahead of J.P. Morgan Healthcare Conference

WuXi Biologics announced that it will present at the 44th Annual J.P. Morgan Healthcare Conference on 14 January 2026, using the forum to share detailed information on its business operations and recent performance with global investors. The company reported strong operational and financial momentum in 2025, adding 209 new projects to reach a total of 945, including 74 phase III and 25 commercial manufacturing programs, and achieving record upfront and total payments on its research platform with new contracts carrying potential milestones exceeding USD4 billion. With roughly two-thirds of new projects centered on bispecifics, multispecifics and ADCs, and a solid execution record in process performance qualification—28 PPQs completed in 2025 and 34 already secured for 2026—the company signals continued growth prospects and reinforced positioning in high-value biologics outsourcing, while cautioning investors to exercise care in interpreting the disclosed information.

The most recent analyst rating on (HK:2269) stock is a Buy with a HK$37.36 price target. To see the full list of analyst forecasts on Wuxi Biologics (Cayman) stock, see the HK:2269 Stock Forecast page.