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WuXi AppTec Co., Ltd. Class H (HK:2359)
:2359
Hong Kong Market

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

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HK

WuXi AppTec Co., Ltd. Class H

(2359)

78Outperform
WuXi AppTec's overall stock score is driven by strong financial performance and positive earnings call highlights. The company demonstrates robust profitability and efficient operations with a stable balance sheet. The technical analysis shows moderate momentum, while the valuation suggests a balanced risk-reward profile. Despite some challenges, the optimistic outlook from the earnings call supports a favorable stock rating.

WuXi AppTec Co., Ltd. Class H (2359) vs. S&P 500 (SPY)

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

Company DescriptionWuXi AppTec Co., Ltd. Class H (2359) is a global pharmaceutical, biotechnology, and medical device open-access capability and technology platform company. It provides a wide range of services, including drug discovery, development, and manufacturing, to support the research and development needs of the life sciences industry. The company operates across various sectors, including pharmaceuticals, biologics, and cell and gene therapies, offering integrated solutions to streamline the development process for its clients.
How the Company Makes MoneyWuXi AppTec makes money primarily through its comprehensive suite of services aimed at supporting the pharmaceutical and biotech industries. The company's revenue model is based on providing contracted research and manufacturing services to its clients, which include pharmaceutical and biotechnology companies globally. Key revenue streams include drug discovery services, development and testing services, and manufacturing of small molecules, biologics, and other therapeutic entities. WuXi AppTec benefits from significant partnerships and collaborations with major industry players, enabling it to access a wide client base and drive recurring revenue. The company's earnings are bolstered by its ability to deliver integrated solutions that cover the entire spectrum of drug development, from initial discovery through to commercial manufacturing.

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

Summary
WuXi AppTec exhibits a strong financial profile characterized by robust profitability, efficient operations, and a stable balance sheet. The company effectively manages its leverage while delivering consistent returns to equity holders. Although cash flow generation is strong, there is potential to enhance free cash flow stability. The overall financial health of the company is commendable, with minor areas for improvement in revenue consistency and cash flow predictability.
Income Statement
85
Very Positive
WuXi AppTec demonstrates solid profitability with a strong gross profit margin and consistent net profit margin. Revenue growth has been robust over recent years, although there was a slight decline in 2024. The company maintains healthy EBIT and EBITDA margins, reflecting effective cost management and operational efficiency. Overall, the income statement reflects a strong financial position with minor fluctuations in revenue.
Balance Sheet
80
Positive
The balance sheet indicates a strong equity position, with a favorable equity ratio suggesting financial stability. The debt-to-equity ratio is quite low, indicating prudent leverage management. Return on equity has been consistently high, signaling efficient use of shareholders' funds. Overall, the balance sheet reflects a robust financial structure with low risk of financial distress.
Cash Flow
75
Positive
WuXi AppTec generates strong operating cash flow, consistently exceeding net income, which highlights effective cash conversion. Free cash flow growth has been positive but somewhat volatile. The company's ability to convert net income into free cash flow is generally strong, although there are periods of lower free cash flow relative to net income. Overall, the cash flow position is solid but shows room for improvement in free cash flow consistency.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
40.91B39.24B40.34B39.35B22.90B16.54B
Gross Profit
17.31B16.28B16.57B14.68B8.31B6.28B
EBIT
13.56B11.58B11.87B10.65B6.04B3.39B
EBITDA
13.95B14.54B14.17B12.42B7.37B4.51B
Net Income Common Stockholders
11.18B9.45B9.61B8.81B5.10B2.96B
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.23B19.56B14.56B7.99B8.77B14.85B
Total Assets
74.94B80.33B73.67B64.69B55.13B46.29B
Total Debt
7.09B4.75B5.45B5.87B4.28B4.29B
Net Debt
-8.63B―-8.31B-2.12B-3.95B-5.94B
Total Liabilities
18.89B21.24B18.15B17.76B16.37B13.57B
Stockholders Equity
55.64B58.63B55.12B46.59B38.49B32.49B
Cash FlowFree Cash Flow
6.99B8.40B7.87B650.34M―942.69M
Operating Cash Flow
2.71B12.41B13.39B10.62B4.59B3.97B
Investing Cash Flow
2.20B―-7.56B―――
Financing Cash Flow
3.31B―-3.94B――9.89B

WuXi AppTec Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price63.80
Price Trends
50DMA
60.15
Positive
100DMA
57.92
Positive
200DMA
50.62
Positive
Market Momentum
MACD
1.29
Negative
RSI
59.31
Neutral
STOCH
65.96
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 63.8 is above the 20-day moving average (MA) of 58.25, above the 50-day MA of 60.15, and above the 200-day MA of 50.62, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 65.96 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$95.66B26.568.17%―7.52%-1.92%
78
Outperform
HK$186.18B15.6621.68%1.70%-0.45%6.17%
76
Outperform
$66.23B14.4113.20%5.99%-9.60%-27.18%
66
Neutral
HK$72.47B36.766.14%1.55%7.63%-24.23%
62
Neutral
€31.10B8.56
5.60%――
52
Neutral
$5.15B3.05-44.13%2.84%16.42%-0.48%
24
Underperform
HK$1.12B―
―-74.76%33.57%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2359
WuXi AppTec Co., Ltd. Class H
63.20
24.93
65.14%
HK:1177
Sino Biopharmaceutical
4.05
1.02
33.75%
HK:2269
Wuxi Biologics (Cayman)
23.55
9.49
67.50%
HK:3320
China Resources Pharmaceutical Group Ltd.
4.95
-0.95
-16.14%
HK:0993
Huarong International Financial Holdings Limited
0.13
0.07
128.07%
HK:1093
CSPC Pharmaceutical Group
5.89
-0.42
-6.70%

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

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 12.11%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, profit increases, and significant backlog expansion, particularly in the WuXi Chemistry and TIDES businesses. However, there were challenges in testing and biology revenue, pricing pressures, and geographic revenue declines in China, as well as the impact of global tariffs. Despite these challenges, the overall sentiment remains cautiously optimistic with a focus on continued growth and resilience.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue achieved RMB9.65 billion, representing a 21% year-over-year growth, with revenue from continuing operations growing 23.1% year-over-year.
Significant Profit Increase
Adjusted non-IFRS net profit grew 40% year-over-year to RMB2.68 billion, and the company achieved an adjusted IFRS gross profit margin of 41.9%.
Record Backlog
Achieved a record backlog for continuing operations of RMB52.33 billion, growing 47.1% year-over-year.
WuXi Chemistry Expansion
WuXi Chemistry revenue grew 32.9% year-over-year to RMB7.39 billion, with a gross profit margin increase of 4.2 percentage points to 47.5%.
TIDES Business Surge
WuXi Heights achieved revenue of RMB2.24 billion in the first quarter, representing 187.6% growth year-over-year, with a TIDES backlog growth of 105.5%.
Global Expansion Efforts
Significant revenue growth in regions like the U.S. (28.4% year-over-year) and Europe (26.2% year-over-year).
Negative Updates
Testing and Biology Revenue Decline
WuXi Testing revenue was down 4% year-over-year to RMB1.29 billion, with lab testing revenue declining by 4.9%.
Geographic Revenue Decline in China
Revenue from China showed a slight decline, highlighting regional challenges.
Pricing and Margin Pressure
Market impact led to declines in pricing and adjusted non-IFRS gross profit margins for certain segments, including a decline in drug safety evaluation service revenue by 7.8%.
Impact of Global Tariffs
Tariffs have emerged as a systemic challenge, affecting procurement costs and potentially impacting profit margins.
Company Guidance
During the first quarter of 2025, WuXi AppTec achieved a 23.1% year-over-year increase in revenue from continuing operations, totaling RMB9.39 billion, while the company's total revenue grew 21% to RMB9.65 billion. The adjusted non-IFRS net profit rose by 40% year-over-year to RMB2.68 billion. The company's record backlog for continuing operations reached RMB52.33 billion, reflecting a 47.1% year-over-year increase. Revenue from the U.S. market grew 28.4% year-over-year, with Europe and other regions also showing growth. WuXi Chemistry's revenue increased by 32.9% to RMB7.39 billion, with an adjusted gross profit margin improvement of 4.2 percentage points to 47.5%. The WuXi Heights new modality business experienced a significant growth of 187.6% year-over-year. Despite these positive results, WuXi AppTec maintained its full-year guidance, expecting a 10% to 15% revenue growth, targeting RMB41.5 billion to RMB43 billion. The company also plans a CapEx of RMB7 billion to RMB8 billion and aims for free cash flow of RMB4 billion to RMB5 billion.

WuXi AppTec Co., Ltd. Class H Corporate Events

WuXi AppTec Announces AGM Results and Dividend Payments
Apr 29, 2025

WuXi AppTec Co., Ltd. announced the results of its 2024 Annual General Meeting and the 2025 First A and H Share Class Meetings, which were held on April 29, 2025. The company also declared the payment of a final and special dividend and approved amendments to its Articles of Association. These developments are significant as they reflect the company’s ongoing commitment to shareholder engagement and corporate governance, potentially impacting its market position and investor relations positively.

WuXi AppTec Finalizes 2024 Cash Dividend Payment
Apr 29, 2025

WuXi AppTec Co., Ltd. has announced a finalized cash dividend payment for the financial year ending December 31, 2024. The dividend, amounting to RMB 9.8169 per 10 shares, will be paid in Hong Kong dollars at a rate of HKD 10.5677 per 10 shares, with an exchange rate of RMB 1 to HKD 1.07648. The ex-dividend date is set for May 15, 2025, and the payment date is June 5, 2025. The announcement includes details on withholding tax rates applicable to different types of shareholders, with non-resident enterprises subject to a 10% tax rate and domestic individual investors facing a 20% tax rate.

WuXi AppTec Announces 2025 Special Dividend Distribution
Apr 29, 2025

WuXi AppTec Co., Ltd. has announced a special cash dividend distribution for the year 2025, with a declared dividend of RMB 3.5 per 10 shares. The dividend will be paid in Hong Kong dollars at a rate of HKD 3.7677 per 10 shares, with the payment date set for June 5, 2025. The company has outlined specific withholding tax rates applicable to different types of shareholders, including non-resident enterprises and domestic individual investors, which could impact the net dividend received by these stakeholders.

WuXi AppTec Releases 2025 First Quarterly Report
Apr 28, 2025

WuXi AppTec Co., Ltd. has released its first quarterly report for the financial year 2025, prepared in accordance with the PRC Accounting Standards and International Financial Reporting Standards. The report, which has not been audited, assures stakeholders of the truthfulness, accuracy, and completeness of its contents, as warranted by the company’s senior management. This announcement underscores the company’s commitment to transparency and accountability in its financial reporting, which is crucial for maintaining trust with investors and stakeholders.

WuXi AppTec Schedules Board Meeting to Review Q1 2025 Results
Apr 14, 2025

WuXi AppTec Co., Ltd. has announced that its Board of Directors will convene on April 28, 2025, to review and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market positioning.

WuXi AppTec Announces Second A Share Repurchase Plan for 2025
Apr 8, 2025

WuXi AppTec Co., Ltd. has announced its plan to repurchase A shares for the second time in 2025, following a significant 20% decrease in share price over 20 consecutive trading days. This move, approved by the company’s board, aims to safeguard the company’s value, protect shareholder interests, and align the market price of its shares with their intrinsic value by using self-owned or self-raised funds. The repurchase plan reflects the company’s strategic response to market fluctuations and is designed to enhance investor confidence.

WuXi AppTec Sells Shares in WuXi XDC to Boost Global Operations
Apr 2, 2025

WuXi AppTec Co., Ltd. announced the disposal of 50,800,000 shares in WuXi XDC Cayman Inc., representing about 4.23% of WuXi XDC’s total issued share capital, for approximately HK$2.178 billion. The proceeds from this transaction will be used to enhance global production capabilities and strengthen the company’s CRDMO model, with the disposal expected to significantly impact the company’s net profit for the first half of 2025.

WuXi AppTec Announces Retirement of Key Executive
Mar 30, 2025

WuXi AppTec Co., Ltd. announced the upcoming retirement of Mr. Edward Hu, the vice chairman of the Board and Global Chief Investment Officer, effective July 31, 2025. Mr. Hu has been with the company for 18 years and will continue to serve as an adviser post-retirement. His departure is not expected to impact the company’s operations or board functionality.

WuXi AppTec Announces 2024 AGM with Key Resolutions
Mar 25, 2025

WuXi AppTec Co., Ltd. has announced its Annual General Meeting (AGM) for 2024, scheduled to take place on April 29, 2025, in Shanghai, China. The AGM will address several key resolutions, including the approval of the 2024 financial and work reports, a profit distribution plan, and a special dividend for 2025. Additionally, the meeting will discuss the re-appointment of auditors, foreign exchange hedging limits, and the adoption of a new H Share Award and Trust Scheme for 2025. These resolutions aim to strengthen the company’s financial management and reward system, potentially impacting its operational efficiency and shareholder value.

WuXi AppTec Announces 2025 H Share Class Meeting for Share Repurchase Mandate
Mar 25, 2025

WuXi AppTec Co., Ltd. has announced the convening of its 2025 First H Share Class Meeting, scheduled for April 29, 2025, in Shanghai, China. The primary agenda is to consider a special resolution granting the Board of Directors a mandate to repurchase up to 10% of the company’s A and H shares, subject to regulatory approvals and certain conditions. This move could potentially impact the company’s share value and market positioning, reflecting a strategic decision to manage its capital structure and shareholder value.

WuXi AppTec Finalizes Dividend Payment Timetable for 2024
Mar 25, 2025

WuXi AppTec Co., Ltd. has announced a finalized timetable for its cash dividend payment, declaring a final ordinary dividend of RMB 9.8169 per 10 shares for the financial year ending December 31, 2024. The company has outlined the withholding tax rates applicable to various types of shareholders and emphasized its obligation to withhold taxes on behalf of non-resident enterprise shareholders. This announcement reflects WuXi AppTec’s commitment to returning value to its shareholders while maintaining compliance with tax regulations, potentially impacting investor decisions and the company’s financial positioning.

WuXi AppTec Announces Special Dividend Distribution
Mar 25, 2025

WuXi AppTec Co., Ltd. has announced a special cash dividend distribution of RMB 3.5 per 10 shares, which amounts to a total of RMB 1,010,797,403.70 based on the company’s total issued share capital as of March 17, 2025. This decision reflects the company’s financial strategy and commitment to rewarding its shareholders. The announcement also outlines the withholding tax arrangements for different categories of shareholders, including non-resident enterprises and domestic individual investors, with tax rates varying from 10% to 20%. The finalized timetable for the dividend payment indicates the company’s operational readiness and transparency in its financial dealings.

WuXi AppTec Announces Change in Accounting Policy to Enhance Financial Reporting
Mar 17, 2025

WuXi AppTec Co., Ltd. has announced a change in its accounting policy to better reflect its main business operations and growth drivers. The company’s reportable segments have been restructured to focus on WuXi Chemistry, WuXi Testing, WuXi Biology, and other non-core businesses, which is expected to streamline operations and provide more relevant financial reporting.

WuXi AppTec Announces 2024 Annual Results and Dividend Proposal
Mar 17, 2025

WuXi AppTec Co., Ltd. announced its annual results for the year ended December 31, 2024, including a proposed final cash dividend of RMB 9.8169 per 10 shares, subject to shareholder approval at the upcoming AGM. The total dividend amounting to RMB 2,835,113,437.82 is expected to be distributed by June 30, 2025, reflecting the company’s commitment to returning value to its shareholders.

WuXi AppTec Announces Special Dividend for 2025
Mar 17, 2025

WuXi AppTec Co., Ltd. has announced a special cash dividend distribution of RMB 3.5 per 10 shares, amounting to a total of RMB 1,010,797,403.70, subject to shareholder approval at the upcoming AGM. This move reflects the company’s robust financial health and commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.

WuXi AppTec Reports 2024 Financial Results and Announces Dividend Plans
Mar 17, 2025

WuXi AppTec Co., Ltd. announced its annual results for the year ended December 31, 2024, reporting a slight decline in revenue and net profit compared to the previous year. Despite the decrease in financial performance, the company has proposed a final dividend and a special dividend distribution to appreciate shareholder support during strategic adjustments in challenging times, subject to shareholder approval at the forthcoming AGM.

WuXi AppTec Announces Capital Adjustment and Article Amendments
Mar 17, 2025

WuXi AppTec Co., Ltd. has announced a proposed change in its registered capital and amendments to its Articles of Association following the completion of share option exercises and share repurchases. The company’s registered capital will decrease from RMB2,933,336,997 to RMB2,887,992,582, reflecting the cancellation of repurchased shares. These changes are part of the company’s strategic financial adjustments and may impact its capital structure and shareholder composition.

WuXi AppTec Proposes 2025 H Share Award Scheme to Enhance Talent Retention
Mar 17, 2025

WuXi AppTec Co., Ltd. has announced the proposed adoption of the 2025 H Share Award and Trust Scheme, aimed at attracting, motivating, and retaining skilled personnel by offering equity incentives aligned with company performance. The scheme, pending shareholder approval at the 2024 AGM, seeks to modernize remuneration practices and align management and shareholder interests, supporting the company’s long-term growth and operational goals.

WuXi AppTec Announces 2025 A Share Repurchase Plan
Mar 17, 2025

WuXi AppTec Co., Ltd. has announced a plan to repurchase its RMB-denominated ordinary shares (A Shares) through bidding on the Shanghai Stock Exchange in 2025. This initiative aims to safeguard shareholder interests, enhance investor confidence, and align the market price of its shares with their intrinsic value. The repurchase, funded by the company’s own and raised funds, will lead to a reduction in registered capital. The plan requires shareholder approval and will be implemented over a period not exceeding twelve months, with provisions for early termination if certain conditions are met.

WuXi AppTec Completes Strategic Subsidiary Share Sale
Mar 10, 2025

WuXi AppTec Co., Ltd. has announced the completion of a significant transaction involving its subsidiaries, WuXi ATU (Ireland) Holding Limited and WuXi ATU (Hong Kong) Limited, which have sold their shares in WuXi Advanced Therapies Inc. and Oxford Genetics Limited to Altaris LLC. This transaction, valued at up to $150 million, includes a guarantee by WuXi AppTec International Holdings Limited for potential indemnity obligations, reflecting the company’s strategic focus on optimizing its operations and maintaining its commitment to providing uninterrupted cell therapy services.

WuXi AppTec Schedules Board Meeting to Discuss 2024 Financial Results
Mar 3, 2025

WuXi AppTec Co., Ltd. has announced that its board of directors will meet on March 17, 2025, to review and approve the company’s final financial results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address other business matters. This announcement is significant as it will provide insights into the company’s financial health and potential shareholder returns, impacting stakeholders’ expectations and the company’s market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.