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

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HK:2359

WuXi AppTec Co., Ltd. Class H

(2359)

Rating:83Outperform
Price Target:
HK$120.00
▲(11.84% Upside)
WuXi AppTec Co., Ltd. Class H receives a strong overall score due to its robust financial performance and positive earnings call outlook. The technical indicators support a bullish trend, although the valuation suggests the stock is fairly priced. The positive earnings call, with increased guidance and strong business performance, significantly boosts the score.

WuXi AppTec Co., Ltd. Class H (2359) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionWuXi AppTec Co., Ltd. Class H (2359) is a leading global pharmaceutical and biotechnology company based in China, providing a broad range of services to support the life sciences sector. The company operates primarily in two segments: WuXi PharmaTech, which offers integrated services for drug discovery, development, and manufacturing, and WuXi Biologics, specializing in biologics solutions for drug development. WuXi AppTec's core services include laboratory services, preclinical and clinical development, and commercial manufacturing, catering to pharmaceutical and biotechnology companies worldwide.
How the Company Makes MoneyWuXi AppTec generates revenue through a diversified business model that includes service fees for its drug discovery, development, and manufacturing services. Key revenue streams include laboratory testing services, preclinical and clinical trial management, and contract manufacturing for drug products. The company has established significant partnerships with major pharmaceutical firms, biotechnology companies, and academic institutions, which contribute to recurring revenue through long-term contracts and collaborations. Additionally, WuXi AppTec benefits from the growing demand for outsourced services in the pharmaceutical industry, driven by the need for cost-effective and efficient drug development processes.

WuXi AppTec Co., Ltd. Class H Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: 8.99%|
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook for WuXi AppTec, with significant growth in revenue and profits, an increase in full-year guidance, and strong performance in the TIDES business. However, there were challenges noted, such as a decline in China revenue and flat performance in the testing segment. Overall, the positive elements, particularly the record growth and increased guidance, suggest a strong performance outlook.
Q2-2025 Updates
Positive Updates
Record Revenue and Profit Growth
WuXi AppTec reported total revenue of RMB 20.80 billion for the first half of 2025, with revenue from continuing operations growing 24.2% year-over-year. Adjusted non-IFRS net profit grew 44.4% year-over-year to RMB 6.31 billion.
Increased Full-Year Revenue Guidance
WuXi AppTec raised its full-year revenue growth guidance by 2 to 3 percentage points to a range of 13% to 17%.
Strong Backlog Growth
The company achieved a record backlog of RMB 56.69 billion, growing 37.2% year-over-year.
TIDES Business Surge
The TIDES business achieved revenue of RMB 5.03 billion in the first half, representing a strong growth of 141% year-over-year.
Sustainability Milestones
WuXi AppTec achieved the highest AAA rating from MSCI and had its emissions reduction targets validated by SBTi.
Cash Flow and Dividend Distribution
Operating cash flow reached RMB 7.07 billion, growing 49.1% year-over-year. The company also distributed around RMB 3.84 billion in cash dividends.
Negative Updates
Decline in China Revenue
Revenue from China experienced some decline, although specific figures were not provided.
Flat Testing Revenue
WuXi Testing revenue slightly declined to RMB 2.69 billion in the first half of the year, with lab testing services revenue almost flat year-over-year.
Challenges in Early-Stage Demand
The company noted a stabilized but not increasing demand in early-stage projects due to ongoing challenges in biotech funding.
Impact of Market Pricing on Margins
The adjusted non-IFRS gross profit margin declined in the testing business due to market pricing impact.
Company Guidance
During WuXi AppTec's second half earnings call, management provided updated guidance for the fiscal year 2025. The company raised its full-year revenue growth guidance by 2 to 3 percentage points, now expecting a growth range of 13% to 17%. For the first half of 2025, WuXi AppTec reported total revenue of RMB 20.80 billion, with revenue from continuing operations growing by 24.2% year-over-year to RMB 20.4 billion. The adjusted non-IFRS net profit increased by 44.4% year-over-year to RMB 6.31 billion, with a non-IFRS net profit margin of 30.4%. Additionally, the backlog for continuing operations reached a record RMB 56.69 billion, marking a 37.2% year-over-year growth. The company also highlighted the strong performance of its WuXi TIDES business, which achieved a revenue of RMB 5.03 billion in the first half, showing a year-over-year growth of 121.6%. Furthermore, the management discussed the company's commitment to sustainability, achieving the highest AAA rating from MSCI, and outlined plans for further capacity expansion with an expected CapEx of RMB 7 billion to RMB 8 billion for 2025.

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

Summary
WuXi AppTec Co., Ltd. Class H demonstrates strong financial performance with robust profitability metrics, a solid balance sheet, and healthy cash flow generation. The company maintains a strong equity base and effective cost management, although revenue growth has moderated slightly.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue42.80B39.24B40.34B39.35B22.90B16.54B
Gross Profit18.74B16.28B16.57B14.68B8.31B6.28B
EBITDA17.74B14.54B14.17B12.42B7.37B4.51B
Net Income13.77B9.45B9.61B8.81B5.10B2.96B
Balance Sheet
Total Assets83.82B80.33B73.67B64.69B55.13B46.29B
Cash, Cash Equivalents and Short-Term Investments24.43B19.56B14.56B7.99B8.77B14.85B
Total Debt7.29B4.75B5.45B5.87B4.28B4.29B
Total Liabilities23.41B21.24B18.15B17.76B16.37B13.57B
Stockholders Equity59.91B58.63B55.12B46.59B38.49B32.49B
Cash Flow
Free Cash Flow10.28B8.40B7.87B650.34M-2.35B942.69M
Operating Cash Flow14.87B12.41B13.39B10.62B4.59B3.97B
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-1.72B9.89B

WuXi AppTec Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price107.30
Price Trends
50DMA
88.35
Positive
100DMA
74.97
Positive
200DMA
64.97
Positive
Market Momentum
MACD
5.00
Positive
RSI
65.77
Neutral
STOCH
87.21
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 107.3 is above the 20-day moving average (MA) of 101.64, above the 50-day MA of 88.35, and above the 200-day MA of 64.97, indicating a bullish trend. The MACD of 5.00 indicates Positive momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 87.21 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

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
HK$302.46B21.1723.23%0.35%6.94%42.86%
73
Outperform
$125.45B34.768.17%7.52%-1.92%
69
Neutral
HK$223.49B47.0216.09%0.93%19.29%31.35%
67
Neutral
€54.80B19.8614.15%1.06%9.43%23.72%
67
Neutral
HK$75.40B64.6917.75%
65
Neutral
HK$59.56B139.471.58%0.56%-11.12%-80.33%
47
Neutral
C$213.29M-1.44-30.58%3.10%19.48%-0.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2359
WuXi AppTec Co., Ltd. Class H
107.60
74.79
227.95%
HK:3692
Hansoh Pharmaceutical Group Company Limited
37.30
19.07
104.61%
HK:3759
Pharmaron Beijing Co., Ltd. Class H
22.26
13.20
145.72%
HK:2269
Wuxi Biologics (Cayman)
30.94
19.18
163.10%
HK:3347
Hangzhou Tigermed Consulting Co., Ltd. Class H
58.40
26.61
83.69%
HK:2268
WuXi XDC Cayman, Inc.
62.25
43.21
226.94%

WuXi AppTec Co., Ltd. Class H Corporate Events

WuXi AppTec Completes HK$7.65 Billion H Share Placement to Fuel Global Expansion
Aug 7, 2025

WuXi AppTec Co., Ltd. announced the successful completion of placing 73,800,000 new H shares under a General Mandate, raising net proceeds of HK$7.65 billion. The funds will primarily be used to accelerate global expansion and capacity construction, with a smaller portion allocated for general corporate purposes, reflecting the company’s strategic focus on growth and strengthening its market position.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Announces Board Composition and Committee Structures
Jul 31, 2025

WuXi AppTec Co., Ltd. has announced the composition of its board of directors and their respective roles, highlighting a diverse mix of executive, non-executive, and independent directors. The announcement also details the structure of four key board committees, indicating a strategic focus on audit, remuneration, strategy, and nomination, which may enhance corporate governance and operational efficiency.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Announces New H Shares Placement Under General Mandate
Jul 30, 2025

WuXi AppTec Co., Ltd. has announced a placing agreement to issue 73,800,000 new H shares, representing a significant percentage of its existing issued shares. This move is aimed at raising capital through professional, institutional, and other independent investors, and the shares will be issued under a general mandate without requiring further shareholder approval. The completion of the placing is contingent upon certain conditions and the rights of the placing agents, and there is no guarantee that it will proceed as planned.

The most recent analyst rating on (HK:2359) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Adjusts Share Repurchase Price Limit Amid Rising Share Value
Jul 29, 2025

WuXi AppTec Co., Ltd. has announced an adjustment to the upper limit of the price for its 2025 First Share Repurchase Plan. The company has decided to increase the upper limit to RMB114.15 per share, reflecting confidence in its future development and the value of its shares. This adjustment comes in response to the rising price of the company’s A Shares, ensuring the smooth implementation of the repurchase plan. As of July 28, 2025, WuXi AppTec has repurchased 6,514,425 A Shares, utilizing approximately RMB497 million.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Announces Key Leadership Changes in Governance Roles
Jul 28, 2025

WuXi AppTec Co., Ltd. announced significant changes in its company secretary and authorized representatives. Mr. Yuanzhou Zhang has resigned from his roles, and Ms. Min Han has been appointed to replace him, effective July 28, 2025. Ms. Han brings over a decade of experience in financial institutions and corporate governance. Additionally, Ms. Christine Shaohua Lu-Wong will replace Mr. Edward Hu as an authorized representative following his retirement on July 31, 2025. These changes are expected to strengthen the company’s governance and operational efficiency.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Reports Robust Financial Growth in H1 2025
Jul 28, 2025

WuXi AppTec Co., Ltd. announced its unaudited interim results for the first half of 2025, showcasing significant financial growth. The company reported a 20.6% increase in revenue and a 95.5% rise in net profit attributable to owners compared to the previous year. The gross profit margin also improved to 43.8%. Additionally, the Board declared a mid-year dividend, reflecting the company’s strong performance and commitment to returning value to shareholders.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Announces 2025 Mid-Year Dividend Distribution
Jul 28, 2025

WuXi AppTec Co., Ltd. has announced the approval and declaration of a mid-year dividend distribution for 2025, following authorization from shareholders at the 2024 AGM. The dividend amounts to RMB3.5000 per 10 shares, with a total distribution of RMB1,003,083,788.00, subject to adjustments based on share capital changes. This dividend distribution reflects the company’s commitment to returning value to its shareholders and may influence its market positioning by enhancing investor confidence.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Announces 2025 Mid-Year Dividend Distribution
Jul 28, 2025

WuXi AppTec Co., Ltd. has announced the payment of its 2025 mid-year dividend distribution, declaring an interim ordinary dividend of RMB 3.5 per 10 shares for the financial year ending December 31, 2025. The dividend will be paid in Hong Kong dollars at a rate of HKD 3.8463 per 10 shares, with the ex-dividend date set for September 8, 2025, and payment scheduled for September 26, 2025. The company will withhold and pay income taxes on behalf of non-resident enterprise shareholders and investors from various stock exchanges, with tax rates varying between 10% and 20%. This announcement reflects WuXi AppTec’s ongoing commitment to shareholder returns and may impact investor sentiment and market positioning.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Schedules Board Meeting to Review Interim Results
Jul 14, 2025

WuXi AppTec Co., Ltd. has announced that its board of directors will meet on July 28, 2025, to review and approve the unaudited interim results for the first half of the year ending June 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.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Projects Significant Profit Growth for H1 2025
Jul 10, 2025

WuXi AppTec Co., Ltd. has issued a positive profit alert, anticipating a significant increase in revenue and net profit for the first half of 2025 compared to the same period in 2024. The company expects a revenue of approximately RMB20,799.28 million, marking a 20.64% year-over-year increase, and a net profit attributable to owners of approximately RMB8,560.88 million, a 101.92% increase, driven by operational efficiencies and a gain from the sale of shares in an associate.

The most recent analyst rating on (HK:2359) stock is a Buy with a HK$71.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Completes HK$1 Billion H Share Acquisition for Employee Incentive Scheme
Jun 30, 2025

WuXi AppTec Co., Ltd. has announced the completion of its acquisition of H Shares worth HK$1 billion under the 2025 H Share Award and Trust Scheme. This acquisition is part of a broader strategy to incentivize core employees by using these shares as award shares, contingent upon the company achieving a revenue target of RMB43 billion for 2025. The scheme aims to align employee interests with company performance without diluting existing shareholder interests, although there remains uncertainty about meeting the revenue conditions.

The most recent analyst rating on (HK:2359) stock is a Buy with a HK$70.40 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Completes 2025 Second Share Repurchase Plan
Jun 23, 2025

WuXi AppTec Co., Ltd. announced the completion of its 2025 Second Share Repurchase Plan, which involved repurchasing and canceling A shares to safeguard company value and shareholder interests. The plan, which utilized RMB1 billion in funds, was executed without deviation from its original disclosure and will not materially impact the company’s operations, financials, or listing status.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Completes HK$1.5 Billion H Share Acquisition for Employee Incentive Scheme
Jun 13, 2025

WuXi AppTec Co., Ltd. announced the completion of the acquisition of H Shares worth HK$1.5 billion under the 2025 H Share Award and Trust Scheme. This acquisition, which represents approximately 0.73% of the company’s total issued share capital, aims to incentivize core employees by granting them Award Shares upon meeting specific revenue targets. The move is part of WuXi AppTec’s strategy to align employee interests with company performance, although there remains uncertainty about meeting the revenue conditions required for the grant.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Adjusts Conversion Price of Convertible Bonds
May 23, 2025

WuXi AppTec Co., Ltd. announced an adjustment to the conversion price of its $500 million zero coupon guaranteed convertible bonds due 2025. The conversion price has been adjusted from HK$80.02 to HK$78.28 per H Share following the approval of the 2024 Profit Distribution and the 2025 Special Dividend Distribution. This adjustment will result in an increase in the number of H Shares issuable upon full conversion of the bonds, enhancing the company’s share capital and potentially impacting its market positioning.

The most recent analyst rating on (HK:2359) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Announces Grant of H Share Awards Under 2024 Scheme
May 21, 2025

WuXi AppTec Co., Ltd. has announced the grant of 27,274,870 H Share Awards under its 2024 H Share Award and Trust Scheme to 3,985 selected participants. This grant, representing approximately 7.0464% of the total issued H Shares, is aimed at incentivizing both connected and independent participants, without causing any dilution effect on existing shareholders. The board considers this grant to be fair and in the best interest of the company and its shareholders.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

WuXi AppTec Adjusts Share Repurchase Price Limits Amid Dividend Distributions
May 14, 2025

WuXi AppTec Co., Ltd. announced adjustments to the upper limit of the price for its A Share repurchase plans following the implementation of its 2024 Profit Distribution and 2025 Special Dividend Distribution. The company plans to repurchase A Shares through two separate plans in 2025, each with a budget of RMB1 billion, aiming to cancel and reduce registered capital. The adjustments in the share repurchase price limits are in response to the company’s dividend distributions, ensuring compliance with relevant regulations. This move is expected to impact the company’s capital structure and provide returns to shareholders.

The most recent analyst rating on (HK:2359) stock is a Hold with a HK$51.00 price target. To see the full list of analyst forecasts on WuXi AppTec Co., Ltd. Class H stock, see the HK:2359 Stock Forecast page.

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.Date of analysis: Aug 06, 2025