WuXi AppTec Co., Ltd. Class H (HK:2359)
:2359
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WuXi AppTec Co., Ltd. Class H
(2359)
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Rating:80Outperform
Price Target:
HK$135.00
â–²(8.09% Upside)
Action:UpgradedDate:04/01/26
The score is led by strong financial performance (profitability and balance sheet strength) and supportive earnings-call guidance/backlog visibility. Technicals are positive but somewhat stretched near term (high stochastic), while valuation is only moderate with a modest dividend yield.
Positive Factors
Conservative balance sheet and low leverage
WuXi’s low reported leverage and large equity base provide durable financial flexibility to fund multi-year capacity buildouts, sustain a 30% payout policy, and absorb cyclical cash swings. This conservatism supports investment in CDMO/TIDES capex and shields operations from episodic funding stress.
Negative Factors
Top-line volatility and forecasting uncertainty
Revenue has shown material year-to-year swings driven by timing of project deliveries and regional variability. This structural variability increases forecasting risk for multi-quarter planning, complicates capacity planning and working-capital management, and can amplify margin and cash flow volatility despite underlying demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and low leverage
WuXi’s low reported leverage and large equity base provide durable financial flexibility to fund multi-year capacity buildouts, sustain a 30% payout policy, and absorb cyclical cash swings. This conservatism supports investment in CDMO/TIDES capex and shields operations from episodic funding stress.
Read all positive factors
WuXi AppTec Co., Ltd. Class H (2359) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$337.15B
Dividend Yield1.84%
Average Volume (3M)6.08M
Price to Earnings (P/E)13.2
Beta (1Y)1.60
Revenue Growth11.55%
EPS Growth64.46%
CountryHK
Employees39,414
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)2.87
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$152.04Price Target Upside21.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)6.63
Revenue Forecast (FY)HK$59.55B
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 Asi...
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:Apr 28, 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
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 45.46B | 39.24B | 40.34B | 39.35B | 22.90B |
| Gross Profit | 21.65B | 16.28B | 16.57B | 14.68B | 8.31B |
| EBITDA | 27.69B | 14.54B | 14.17B | 12.42B | 7.37B |
| Net Income | 19.15B | 9.45B | 9.61B | 8.81B | 5.10B |
Balance Sheet | |||||
| Total Assets | 103.12B | 80.33B | 73.67B | 64.69B | 55.13B |
| Cash, Cash Equivalents and Short-Term Investments | 40.94B | 19.56B | 14.56B | 7.99B | 8.77B |
| Total Debt | 8.26B | 4.75B | 5.45B | 5.87B | 4.28B |
| Total Liabilities | 22.87B | 21.24B | 18.15B | 17.76B | 16.37B |
| Stockholders Equity | 79.71B | 58.63B | 55.12B | 46.59B | 38.49B |
Cash Flow | |||||
| Free Cash Flow | 11.67B | 8.40B | 7.87B | 650.34M | -2.35B |
| Operating Cash Flow | 17.20B | 12.41B | 13.39B | 10.62B | 4.59B |
| Investing Cash Flow | -1.95B | -5.52B | -7.56B | -9.69B | -4.84B |
| Financing Cash Flow | 1.12B | -3.83B | -3.94B | -1.28B | -1.72B |
WuXi AppTec Co., Ltd. Class H Technical Analysis
Positive
124.90
Price Trends
114.56
Positive
109.94
Positive
105.26
Positive
Market Momentum
1.76
Negative
65.14
Neutral
92.91
Negative
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 124.9 is above the 20-day moving average (MA) of 111.70, above the 50-day MA of 114.56, and above the 200-day MA of 105.26, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.91 is Negative, 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$337.15B | 13.23 | 23.81% | 1.84% | 11.55% | 64.46% | |
78 Outperform | HK$238.33B | 12.89 | 16.09% | 0.97% | 8.68% | 0.82% | |
73 Outperform | HK$76.93B | 46.00 | 19.62% | ― | ― | ― | |
63 Neutral | HK$144.73B | 11.12 | 10.55% | ― | 16.90% | 63.11% | |
63 Neutral | HK$57.11B | 18.63 | 11.48% | 1.04% | 14.50% | -19.24% | |
58 Neutral | HK$47.82B | 37.05 | 2.95% | 0.80% | -3.81% | -34.76% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:2359
WuXi AppTec Co., Ltd. Class H
124.90
75.20
151.31%
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91.36%
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42.70
18.40
75.70%
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Pharmaron Beijing Co., Ltd. Class H
20.98
9.36
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Hansoh Pharmaceutical Group Company Limited
39.36
18.94
92.75%
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WuXi XDC Cayman, Inc.
61.15
31.35
105.20%
WuXi AppTec Co., Ltd. Class H Corporate Events
WuXi AppTec Sets 2025 AGM to Vote on Dividends, Board Slate and FX Hedging
Mar 24, 2026
WuXi AppTec has convened its 2025 Annual General Meeting for April 28, 2026 in Shanghai, where shareholders will review the 2025 board work report and vote on the annual profit distribution plan and authorization for a mid-year dividend scheme. Th...
WuXi AppTec Seeks H Shareholder Approval for Direct Buyback and 10% Repurchase Mandate
Mar 24, 2026
WuXi AppTec has convened its first 2026 H Share Class Meeting in Shanghai, to be held immediately after its 2025 annual general meeting and the corresponding A share class meeting, to seek H shareholders’ approval on key share-related resolu...
WuXi AppTec Doubles Profit and Lifts Dividend on Strong 2025 Results
Mar 23, 2026
WuXi AppTec reported strong financial results for the year ended December 31, 2025, with revenue rising 15.8% year on year to RMB45,456.2 million and gross profit jumping 33.5% to RMB21,379.1 million, lifting gross margin to 47.0%. Net profit attr...
WuXi AppTec Proposes Registered Capital Increase After Bond Conversions
Mar 23, 2026
WuXi AppTec Co., Ltd. has proposed an increase in its registered capital following the conversion of its outstanding U.S.$500 million zero coupon guaranteed convertible bonds due 2025 into H shares. The company’s total share capital would ri...
WuXi AppTec Proposes 2026 H Share Award and Trust Scheme to Align Pay With Growth
Mar 23, 2026
WuXi AppTec plans to introduce a 2026 H Share Award and Trust Scheme, subject to shareholder approval at the 2025 annual general meeting, to grant equity awards to selected participants over a ten-year period funded by internal resources. The sche...
WuXi AppTec Tightens Governance of 2025 H Share Award Scheme With Treasury Share Option
Mar 23, 2026
WuXi AppTec plans to amend its 2025 H Share Award and Trust Scheme so that awards can also be satisfied with Treasury H Shares, in addition to H shares acquired on market, effectively turning the plan into a share scheme that can involve the grant...
WuXi AppTec Moves to Renew Board as Director Terms Near Expiry
Mar 23, 2026
WuXi AppTec has proposed the re-election of its current executive and non-executive directors as the term of the third session of its board approaches expiry in May 2026. The company plans to seek shareholder approval at the 2025 annual general me...
WuXi AppTec Tightens Governance With Updated Remuneration Committee Mandate
Mar 23, 2026
WuXi AppTec has revised the terms of reference for its Remuneration and Appraisal Committee, a specialized body under the board of directors responsible for setting performance evaluation standards and remuneration policies for directors and senio...
WuXi AppTec Proposes RMB 4.7 Billion Final Dividend for 2025
Mar 23, 2026
WuXi AppTec Co., Ltd. has proposed a final cash dividend of RMB 15.7927 per 10 shares for the financial year ended 31 December 2025, amounting to a planned aggregate payout of about RMB 4.71 billion based on its current issued share capital. The p...
WuXi AppTec Schedules Board Meeting to Approve 2025 Annual Results and Consider Final Dividend
Mar 9, 2026
WuXi AppTec Co., Ltd. has announced that its board of directors will convene a meeting on March 23, 2026 to review and approve the group’s audited financial results for the year ended December 31, 2025. The board will also consider whether t...
WuXi AppTec Flags Strong 2025 Earnings Surge on CRDMO Growth and Investment Gains
Jan 12, 2026
WuXi AppTec issued a positive profit alert, indicating it expects significant year-on-year growth in both revenue and earnings for the financial year ending 31 December 2025, based on preliminary figures prepared under Chinese accounting standards...
WuXi AppTec Grants Additional H Share Awards to 24 Managers Without Diluting Shareholders
Jan 7, 2026
WuXi AppTec has made a further grant of 126,240 existing H shares under its 2024 H Share Award and Trust Scheme to 24 independent senior, mid-level and basic-level managers, representing about 0.0247% of its issued H shares and 0.0042% of its tota...
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.