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WuXi AppTec Co., Ltd. Class H
(2359)
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Rating:80Outperform
Price Target:
HK$163.00
▲(32.63% Upside)
Action:Reiterated
Date:06/25/26
The score is driven primarily by strong financial performance (very high margins/returns and low leverage). Technicals add support with price above major moving averages and positive MACD, though momentum indicators are getting elevated. Valuation is reasonable with a mid-teens P/E and a modest dividend yield.
Positive Factors
Integrated end-to-end platform
WuXi’s integrated R&D-to-manufacturing platform creates customer stickiness and cross-selling opportunities. Capturing work across multiple program stages raises lifetime revenue per client, smooths utilization of labs/capacity, and supports durable service demand as pipelines advance.
Negative Factors
Uneven and modest revenue growth
Top-line growth remains modest and inconsistent versus earlier years, which can limit scaling benefits and leave margins sensitive to client project timing. Reliance on program progression means revenue can lag, constraining durable upside absent steady new bookings.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated end-to-end platform
WuXi’s integrated R&D-to-manufacturing platform creates customer stickiness and cross-selling opportunities. Capturing work across multiple program stages raises lifetime revenue per client, smooths utilization of labs/capacity, and supports durable service demand as pipelines advance.
Read all positive factors
WuXi AppTec Co., Ltd. Class H (2359) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$422.21B
Dividend Yield1.84%
Average Volume (3M)6.08M
Price to Earnings (P/E)17.0
Beta (1Y)1.49
Revenue Growth19.90%
EPS Growth86.59%
CountryHK
Employees33,834
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)7.03
Shares Outstanding510,476,900
10 Day Avg. Volume5,559,442
30 Day Avg. Volume6,076,831
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)3.18
Price to Sales (P/S)5.57
P/FCF Ratio21.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$168.20Price Target Upside36.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)6.99
Revenue Forecast (FY)HK$61.42B
WuXi AppTec Co., Ltd. Class H Business Overview & Revenue Model
Company Description
WuXi AppTec Co., Ltd. operates as an investment holding enterprise, delivering extensive research, development, and manufacturing services. These services primarily aid in the discovery, advancement, and production of small molecule pharmaceutical...
How the Company Makes Money
WuXi AppTec makes money primarily by providing contract research, development, and manufacturing-related services to external customers and charging service fees under project-based contracts and longer-term, ongoing service arrangements. (1) Fee-...
WuXi AppTec Co., Ltd. Class H Earnings Call Summary
Earnings Call Date:Mar 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strong financial and operational performance for 2025 with record revenue, expanding margins, robust cash flow and a large, growing backlog. Rapid capacity expansion (especially TIDES) and strong U.S. demand underpin an ambitious 2026 guidance and generous shareholder returns. Key near-term risks noted include regional timing-related revenue variability (Europe & China), margin pressure in Testing and Biology from pricing dynamics, rising inventory/working capital needs, FX and raw-material/geopolitical exposure, and concentration risk around peptides/GLP-1 and new modalities. On balance, the positive operational and financial momentum, clear guidance and capacity-backed backlog materially outweigh the outlined challenges.Positive Updates
Record Revenue and Continuing Operations Growth
Total revenue reached RMB 45.46 billion in 2025; revenue from continuing operations grew 21.4% YoY to RMB 43.42 billion, beating full-year guidance.
Negative Updates
Softness in Europe and China (Timing-Related)
Management reported declines in Europe and China revenue driven mainly by project delivery timing and backlog conversion fluctuations, causing regional mix shifts despite overall growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Continuing Operations Growth
Total revenue reached RMB 45.46 billion in 2025; revenue from continuing operations grew 21.4% YoY to RMB 43.42 billion, beating full-year guidance.
Read all positive updates
Company Guidance
WuXi AppTec guided 2026 total revenue of RMB 51.3–53.0 billion (continuing‑operations growth of 18%–22% YoY; midpoint ≈20%), with CapEx of RMB 6.5–7.5 billion and expected adjusted free cash flow of RMB 10.5–11.5 billion; management said it expects to maintain a stable adjusted non‑IFRS net‑profit margin in 2026 (after 2025 adjusted non‑IFRS net profit of RMB 14.96 billion and margin of 32.9%). They noted ~70% of the year‑end backlog (RMB 58 billion continuing operations) is expected to convert in 2026 (≈RMB 42 billion), implying roughly RMB 9–11 billion of incremental new orders will be required to hit guidance. The Board proposed a record RMB 5.7 billion cash distribution (30% payout; RMB 4.71 billion for 2025 dividend plus an interim RMB 1.0 billion in 2026) and an H‑share incentive trust of up to HKD 1.5 billion (plus HKD 1.0 billion if revenue ≥ RMB 53.0 billion), while continuing to prioritize CDMO and TIDES capacity expansion amid monitored FX and commodity risks.WuXi AppTec Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.22B | 45.46B | 39.24B | 40.34B | 39.35B | 22.90B |
| Gross Profit | 23.76B | 21.65B | 16.28B | 16.57B | 14.68B | 8.31B |
| EBITDA | 25.31B | 27.69B | 14.54B | 14.17B | 12.42B | 7.37B |
| Net Income | 20.13B | 19.15B | 9.45B | 9.61B | 8.81B | 5.10B |
Balance Sheet | ||||||
| Total Assets | 107.41B | 103.12B | 80.33B | 73.67B | 64.69B | 55.13B |
| Cash, Cash Equivalents and Short-Term Investments | 43.38B | 40.94B | 19.56B | 14.56B | 7.99B | 8.77B |
| Total Debt | 8.21B | 8.26B | 4.75B | 5.45B | 5.87B | 4.28B |
| Total Liabilities | 22.64B | 22.87B | 21.24B | 18.15B | 17.76B | 16.37B |
| Stockholders Equity | 84.22B | 79.71B | 58.63B | 55.12B | 46.59B | 38.49B |
Cash Flow | ||||||
| Free Cash Flow | 11.75B | 11.67B | 8.40B | 7.87B | 650.34M | -2.35B |
| Operating Cash Flow | 17.75B | 17.20B | 12.41B | 13.39B | 10.62B | 4.59B |
| Investing Cash Flow | -9.63B | -1.95B | -5.52B | -7.56B | -9.69B | -4.84B |
| Financing Cash Flow | -261.46M | 1.12B | -3.83B | -3.94B | -1.28B | -1.72B |
WuXi AppTec Co., Ltd. Class H Technical Analysis
Positive
122.90
Price Trends
134.63
Positive
125.92
Positive
116.35
Positive
Market Momentum
6.50
Negative
61.48
Neutral
45.27
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 122.9 is below the 20-day moving average (MA) of 142.32, below the 50-day MA of 134.63, and above the 200-day MA of 116.35, indicating a bullish trend. The MACD of 6.50 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 45.27 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$422.21B | 16.96 | 27.31% | 1.84% | 19.90% | 86.59% | |
71 Outperform | HK$66.87B | 53.16 | 6.34% | 1.57% | 18.78% | 12.65% | |
64 Neutral | HK$157.29B | 27.12 | 10.64% | ― | 16.79% | 47.14% | |
62 Neutral | HK$41.44B | 51.58 | 3.69% | 0.80% | 10.65% | 134.38% | |
61 Neutral | HK$64.97B | 35.50 | 11.22% | 1.04% | 16.83% | -8.65% | |
54 Neutral | HK$30.13B | -7.26 | -12.72% | ― | 60.96% | -117.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:2359
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Asymchem Laboratories (Tianjin) Co., Ltd. Class H
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WuXi AppTec Co., Ltd. Class H Corporate Events
WuXi AppTec Completes HK$2.5 Billion H-Share Buyback for 2026 Incentive Scheme
Jun 17, 2026
WuXi AppTec has completed the acquisition of H shares worth HK$2.5 billion under its 2026 H Share Award and Trust Scheme, repurchasing 20,148,900 H shares, or about 0.68% of its total issued share capital, as treasury stock. These shares will late...
WuXi AppTec Sues U.S. Defense Department Over “Chinese Military Company” Label
Jun 11, 2026
WuXi AppTec has initiated legal action in the United States to contest its recent designation as a “Chinese military company” by the U.S. Department of Defense under Section 1260H. The company argues the designation is erroneous, lacks...
WuXi AppTec to Repurchase A Shares for 2026 Employee Stock Plan
Jun 9, 2026
WuXi AppTec has secured shareholder and board approvals to launch a share repurchase of its A shares in 2026, under an existing mandate that allows the company to buy back up to 10% of its total issued share capital. The buyback will be conducted ...
WuXi AppTec Grants 2025 H-Share Awards Using Only On-Market Stock
Jun 9, 2026
WuXi AppTec has confirmed that all awards under its 2025 H Share Award and Trust Scheme will be sourced exclusively from existing H shares acquired on the market by a trustee with company funds, rather than from treasury shares. This decision remo...
WuXi AppTec Disputes U.S. Pentagon Move to List It as Chinese Military Company
Jun 9, 2026
WuXi AppTec has rejected its inclusion by the U.S. Department of Defense on an updated Section 1260H list of designated Chinese military companies, calling the move a clear mistake and pledging immediate action to challenge and correct the designa...
WuXi AppTec Completes RMB6.78 Billion Zero‑Coupon Convertible Bond Issue
May 21, 2026
WuXi AppTec has completed the issuance of RMB6.78 billion zero‑coupon, U.S. dollar‑settled convertible bonds due 2027, following the fulfillment of all conditions under its subscription agreement. The Hong Kong‑listed company pla...
WuXi AppTec to Raise Over US$1 Billion via Premium-Priced Convertible Bonds
May 15, 2026
WuXi AppTec plans to issue RMB6.78 billion of U.S. dollar-settled zero coupon convertible bonds due 2027, under a subscription agreement signed with a syndicate of managers after market close on May 14, 2026. The bonds are convertible into H share...
WuXi AppTec Updates Final Dividend Timetable and Tax Arrangements for Shareholders
Apr 29, 2026
WuXi AppTec has updated its timetable for the payment of its final cash dividend for the financial year ended 31 December 2025, declaring RMB 15.7927 per 10 shares, equivalent to HKD 18.028 per 10 shares for Hong Kong shareholders based on a speci...
WuXi AppTec Publishes Voluntary Q1 2026 Results Presentation With Investor Caution
Apr 29, 2026
WuXi AppTec has voluntarily released a full presentation of its first-quarter 2026 financial results and business operations to give shareholders and potential investors a more comprehensive view of its performance. The company cautions that the m...
WuXi AppTec Updates Timetable for 2025 Profit Distribution to H Shareholders
Apr 29, 2026
WuXi AppTec Co., Ltd., a China-based pharmaceutical and life-sciences services provider listed in Hong Kong, serves global healthcare and biopharma clients with a broad range of RD and related services. Its H shares are traded on the Hong Kong Sto...
WuXi AppTec Confirms AGM and Share Class Meeting Results, Governance Changes and Dividend
Apr 28, 2026
WuXi AppTec reported the poll results of its 2025 annual general meeting and the first 2026 class meetings for both A and H shareholders, all held in Shanghai on April 28, 2026. Voting was conducted on-site and online via the Shanghai Stock Exchan...
WuXi AppTec Sets Final 2025 Dividend and Details Cross-Border Tax Treatment
Apr 28, 2026
WuXi AppTec has announced a final cash dividend of RMB 15.7927 per 10 shares for the financial year ended 31 December 2025, following shareholder approval at its 2025 annual general meeting on 28 April 2026. For H-share investors in Hong Kong, the...
WuXi AppTec Sets Out Board and Committee Structure
Apr 28, 2026
WuXi AppTec Co., Ltd. has announced the current composition of its board of directors, detailing a mix of executive, non-executive and independent non-executive directors, with Ge Li serving as chairman and chief executive officer. The board struc...
WuXi AppTec Confirms Board and Executive Line-Up for Fourth Term
Apr 28, 2026
WuXi AppTec has confirmed a broad slate of board and senior management decisions at the first meeting of its fourth board session, effective April 28, 2026. The company re-elected founder Dr. Ge Li as chairman, and re-appointed him as president an...
WuXi AppTec Files Unaudited First-Quarter 2026 Report Under PRC and IFRS Standards
Apr 27, 2026
WuXi AppTec Co., Ltd. has released its unaudited first quarterly report for the 2026 financial year, prepared under PRC Accounting Standards for Business Enterprises or IFRS Accounting Standards, in line with Hong Kong listing and securities regul...
WuXi AppTec Sets Board Meeting to Approve First-Quarter 2026 Results
Apr 13, 2026
WuXi AppTec Co., Ltd. announced that its board of directors will convene on April 27, 2026 to review and approve the Group’s first-quarter results for the period ended March 31, 2026. The board meeting will also authorize the publication of ...
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.