WuXi AppTec Co., Ltd. Class H (2359) AI Stock Analysis

• Market Cap: HK$297.96B
• Dividend Yield: 1.73%
• Average Volume (3M): 6.08M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.54
• Revenue Growth: 11.55%
• EPS Growth: 64.46%
• Country: HK
• Employees: 39,414
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.35
• Shares Outstanding: 510,476,900
• 10 Day Avg. Volume: 5,559,442
• 30 Day Avg. Volume: 6,076,831
• PEG Ratio: 13.17
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 3.92
• P/FCF Ratio: 18.29
• 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$134.81
• Price Target Upside: 28.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$114.00 ▲(8.47% Upside)

WuXi AppTec Co., Ltd. Class H demonstrates strong financial performance with solid profitability and a stable balance sheet, which are the most significant factors contributing to the score. The technical analysis suggests a neutral to slightly bearish outlook, while the valuation indicates the stock is fairly priced. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Raising revenue guidance indicates strong business momentum and confidence in sustained growth, driven by expanding market opportunities and effective execution.

Backlog Growth

A growing backlog reflects strong demand for services, providing revenue visibility and supporting long-term financial stability.

Profitability

Significant profit growth highlights operational efficiency and effective cost management, enhancing the company's financial health and shareholder value.

Negative Factors

Testing Revenue Decline

Declining testing revenue suggests challenges in maintaining growth in this segment, potentially impacting overall revenue diversification and stability.

China Market Challenges

Challenges in the China market could limit growth potential and expose the company to regional economic fluctuations, affecting long-term performance.

Exchange Rate Impact

Exchange rate fluctuations can impact profitability and financial results, introducing uncertainty and potential volatility in earnings.

WuXi AppTec Co., Ltd. Class H Business Overview & Revenue Model

Company Description

WuXi AppTec Co., Ltd., an investment holding company, provides research, development, and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates through six segments: WuXi Chemistry, WuXi Testing, WuXi Biology, WuXi ATU, WuXi DDSU, and Others. It offers contract research, development, and manufacturing organization services for new drug development from discovery to commercial covering various categories for various synthetic molecular modalities, including small molecules, oligonucleotides, peptides, and complex conjugates; and biology services and solutions that support stand-alone and integrated projects from target discovery to candidate selection and into the clinic. The company also provides seamless drug and medical device testing services from preclinical testing to clinical trials; an integrated end-to-end solution to accelerate time to market for cell and gene therapies; drug discovery services to pharmaceutical and biotech customers; and clinical research services. WuXi AppTec Co., Ltd. was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

WuXi AppTec generates revenue through multiple streams, primarily by offering contract research and manufacturing services (CRAMS) to pharmaceutical and biotechnology companies. These services include drug discovery, preclinical and clinical development, and commercial manufacturing. The company typically charges fees based on the scope and complexity of the services provided. Significant partnerships with major pharmaceutical firms enhance its earnings by securing long-term contracts and collaborations, which also help diversify its client base. Additionally, WuXi AppTec may earn revenue through licensing agreements and collaborations in drug development, further strengthening its financial position.

WuXi AppTec Co., Ltd. Class H Financial Statement Overview

Summary

WuXi AppTec Co., Ltd. Class H presents a robust financial profile with strong profitability, a solid balance sheet, and healthy cash flow generation. The company has a strong gross profit margin of 43.77% and a net profit margin of 32.18%. The balance sheet is stable with a low debt-to-equity ratio of 0.12 and a strong ROE of 23.34%. Cash flow metrics are healthy, with a free cash flow growth rate of 9.12%.

Income Statement

WuXi AppTec Co., Ltd. Class H has demonstrated strong financial performance with consistent revenue growth and robust profitability metrics. The TTM (Trailing-Twelve-Months) data shows a healthy gross profit margin of 43.77% and a net profit margin of 32.18%, indicating efficient cost management and strong bottom-line performance. The EBIT and EBITDA margins are also impressive at 38.70% and 40.60% respectively, reflecting operational efficiency. The revenue growth rate of 4.61% in the TTM period suggests steady expansion, although it is slightly lower compared to previous years.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.12, indicating conservative leverage and financial stability. The return on equity (ROE) is strong at 23.34%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 71.47%, reflecting a strong equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with manageable debt levels and strong equity.

Cash Flow

WuXi AppTec Co., Ltd. Class H exhibits healthy cash flow metrics with a free cash flow growth rate of 9.12% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.72, suggesting good cash conversion from earnings. The free cash flow to net income ratio of 0.69 further supports the company's ability to generate cash relative to its net income. The cash flow position is strong, although there is room for improvement in converting operating cash flow into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.80B	39.24B	40.34B	39.35B	22.90B	16.54B
Gross Profit	18.74B	16.28B	16.57B	14.68B	8.31B	6.28B
EBITDA	17.74B	14.54B	14.17B	12.42B	7.37B	4.51B
Net Income	13.77B	9.45B	9.61B	8.81B	5.10B	2.96B
Balance Sheet
Total Assets	83.82B	80.33B	73.67B	64.69B	55.13B	46.29B
Cash, Cash Equivalents and Short-Term Investments	24.43B	19.56B	14.56B	7.99B	8.77B	14.85B
Total Debt	7.29B	4.75B	5.45B	5.87B	4.28B	4.29B
Total Liabilities	23.41B	21.24B	18.15B	17.76B	16.37B	13.57B
Stockholders Equity	59.91B	58.63B	55.12B	46.59B	38.49B	32.49B
Cash Flow
Free Cash Flow	10.28B	8.40B	7.87B	650.34M	-2.35B	942.69M
Operating Cash Flow	14.87B	12.41B	13.39B	10.62B	4.59B	3.97B
Investing Cash Flow	-1.73B	-5.52B	-7.56B	-9.69B	-4.84B	-8.78B
Financing Cash Flow	-5.30B	-3.83B	-3.94B	-1.28B	-1.72B	9.89B

WuXi AppTec Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.10
• 50DMA: Negative
• 100DMA: Negative
• 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:2359, the sentiment is Positive. The current price of 105.1 is above the 20-day moving average (MA) of 103.84, below the 50-day MA of 106.36, and above the 200-day MA of 87.06, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2359.

WuXi AppTec Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3692	73 Outperform	HK$216.05B	41.10	16.09%	0.85%	8.68%	0.82%
2268	73 Outperform	HK$88.15B	58.95	19.62%	―	―	―
2359	71 Outperform	HK$297.96B	17.92	25.65%	1.73%	11.55%	64.46%
3759	67 Neutral	HK$53.07B	22.99	10.94%	0.98%	13.79%	-18.95%
2269	63 Neutral	$130.61B	28.53	9.79%	―	16.90%	63.11%
3347	61 Neutral	€48.92B	56.34	2.72%	0.82%	-3.81%	-34.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

WuXi AppTec Co., Ltd. Class H Corporate Events

WuXi AppTec Releases 2025 Third Quarterly Report

WuXi AppTec Co., Ltd. has released its unaudited third quarterly report for 2025, prepared in accordance with PRC Accounting Standards and International Financial Reporting Standards. The report, which adheres to the regulatory requirements of the Hong Kong Stock Exchange, emphasizes the company’s commitment to transparency and accuracy in its financial disclosures. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance, impacting its market positioning and investor relations.

WuXi AppTec Sells Subsidiaries to Focus on Core CRDMO Business

WuXi AppTec Co., Ltd. has entered into a sale and purchase agreement with Hillhouse Investment Management to sell its subsidiaries, WuXi Clinical Development Services and WuXi MedKey Med-Tech Development, for cash consideration. This transaction aligns with WuXi AppTec’s strategy to focus on its core CRDMO business, providing financial support to enhance global capabilities. The transaction, which does not constitute a major or connected transaction under Hong Kong and Shanghai Stock Exchange rules, is expected to accelerate the company’s development in serving its customers more effectively.

WuXi AppTec Schedules Board Meeting to Review Q3 Financial Results

WuXi AppTec Co., Ltd. has announced that its board of directors will convene on October 24, 2025, to review and approve the company’s third-quarter financial results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

WuXi AppTec Sells Stake in WuXi XDC to Boost Global Operations

WuXi AppTec Co., Ltd. announced the disposal of 30,300,000 shares in WuXi XDC Cayman Inc., representing approximately 2.47% of WuXi XDC’s total issued share capital, for approximately HK$2.346 billion. The proceeds from this transaction will be used to enhance global production capacity and capabilities, attract talent, and strengthen the company’s integrated CRDMO business model, with the net realized investment gains significantly impacting the company’s net profit for 2025.

WuXi AppTec Announces Key Governance Changes Post-EGM

WuXi AppTec Co., Ltd. recently held an extraordinary general meeting where key resolutions were passed, including the cancellation of the supervisory committee and amendments to the articles of association. The meeting saw participation from a significant number of shareholders, with 51.9894% of the total shares with voting rights represented, indicating strong shareholder engagement in the company’s governance matters.