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WuXi AppTec Co., Ltd. Class H
(2359)
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Rating:75Outperform
Price Target:
HK$214.00
â–²(4.80% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by strong financial performance (high profitability, low leverage, and strong ROE), partially offset by weaker near-term technical momentum (below key short-term moving averages and negative MACD). Valuation is supportive with a reasonable P/E and a modest dividend yield.
Positive Factors
Strong Revenue and Margin Performance
The company combines positive top-line growth with exceptionally high profitability, indicating strong economics across its CRDMO services. Expanded net margins versus 2023–2024 suggest operating leverage or a better mix, supporting internally funded investment and durable earnings potential.
Negative Factors
Uneven Revenue Growth
Although TTM revenue growth is positive, the prior downturn shows that demand and customer activity can vary materially across the cycle. Uneven growth makes it harder to assume that current momentum will persist and could reduce operating leverage if revenue expansion moderates.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Margin Performance
The company combines positive top-line growth with exceptionally high profitability, indicating strong economics across its CRDMO services. Expanded net margins versus 2023–2024 suggest operating leverage or a better mix, supporting internally funded investment and durable earnings potential.
Read all positive factors
WuXi AppTec Co., Ltd. Class H (2359) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$506.60B
Dividend Yield1.29%
Average Volume (3M)5.50M
Price to Earnings (P/E)15.5
Beta (1Y)1.13
Revenue Growth38.26%
EPS Growth84.56%
CountryHK
Employees33,834
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)9.06
Shares Outstanding561,623,840
10 Day Avg. Volume7,644,454
30 Day Avg. Volume5,496,883
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$221.14Price Target Upside8.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)9.5
Revenue Forecast (FY)HK$70.05B
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...
WuXi AppTec Co., Ltd. Class H Earnings Call Summary
Earnings Call Date:Mar 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 22, 2027
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
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.07B | 45.46B | 39.24B | 40.34B | 39.35B | 22.90B |
| Gross Profit | 30.85B | 21.65B | 16.28B | 16.57B | 14.68B | 8.31B |
| EBITDA | 32.93B | 27.69B | 14.54B | 14.17B | 12.42B | 7.37B |
| Net Income | 26.42B | 19.15B | 9.45B | 9.61B | 8.81B | 5.10B |
Balance Sheet | ||||||
| Total Assets | 125.16B | 103.12B | 80.33B | 73.67B | 64.69B | 55.13B |
| Cash, Cash Equivalents and Short-Term Investments | 53.48B | 40.94B | 19.56B | 14.56B | 7.99B | 8.77B |
| Total Debt | 8.38B | 8.26B | 4.75B | 5.45B | 5.87B | 4.28B |
| Total Liabilities | 27.70B | 22.87B | 21.24B | 18.15B | 17.76B | 16.37B |
| Stockholders Equity | 96.85B | 79.71B | 58.63B | 55.12B | 46.59B | 38.49B |
Cash Flow | ||||||
| Free Cash Flow | 15.93B | 11.67B | 8.40B | 7.87B | 650.34M | -2.35B |
| Operating Cash Flow | 22.98B | 17.20B | 12.41B | 13.39B | 10.62B | 4.59B |
| Investing Cash Flow | -16.24B | -1.95B | -5.52B | -7.56B | -9.69B | -4.84B |
| Financing Cash Flow | -1.78B | 1.12B | -3.83B | -3.94B | -1.28B | -1.72B |
WuXi AppTec Co., Ltd. Class H Technical Analysis
Negative
204.20
Price Trends
199.51
Negative
178.84
Positive
149.16
Positive
Market Momentum
-4.10
Positive
37.38
Neutral
42.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2359, the sentiment is Negative. The current price of 204.2 is above the 20-day moving average (MA) of 199.71, above the 50-day MA of 199.51, and above the 200-day MA of 149.16, indicating a neutral trend. The MACD of -4.10 indicates Positive momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 42.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$506.60B | 15.47 | 30.77% | 1.29% | 38.26% | 84.56% | |
72 Outperform | HK$183.11B | 31.19 | 10.51% | ― | 21.93% | 21.94% | |
64 Neutral | HK$79.58B | -14.95 | -16.23% | 0.35% | 53.48% | -120.02% | |
58 Neutral | HK$54.78B | 40.79 | 6.66% | 1.44% | 23.95% | 18.73% | |
55 Neutral | HK$42.54B | -76.42 | -2.00% | 0.38% | 16.21% | -82.18% | |
53 Neutral | HK$80.45B | 41.79 | 10.93% | 0.85% | 24.21% | 19.72% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:2359
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Hangzhou Tigermed Consulting Co., Ltd. Class H
37.92
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Asymchem Laboratories (Tianjin) Co., Ltd. Class H
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22.99%
WuXi AppTec Co., Ltd. Class H Corporate Events
WuXi AppTec Posts Strong 2026 Q3 Growth as Core CRDMO Business Expands
Oct 26, 2026
WuXi AppTec has released its unaudited third-quarter report for 2026, prepared under IFRS Accounting Standards, detailing strong growth across its core business segments. The update underscores the company’s expanding role as a key RD and ma...
WuXi AppTec Sets October Board Meeting to Approve Q3 2026 Results
Oct 12, 2026
WuXi AppTec Co., Ltd., a China-based contract research and manufacturing service provider to the global pharmaceutical and biotech sectors, operates through a network of subsidiaries that deliver integrated support across drug discovery and develo...
WuXi AppTec Shareholders Back Governance Changes at Extraordinary Meeting
Sep 29, 2026
WuXi AppTec reported the poll results from its extraordinary general meeting held on September 29, 2026, in Shanghai, where shareholders voted on amendments to the company’s Articles of Association. The meeting was conducted both on-site and...
WuXi AppTec Completes Full Conversion and Delists 2027 Convertible Bonds
Sep 23, 2026
WuXi AppTec Co., Ltd. announced that its RMB6.78 billion U.S. dollar-settled zero coupon convertible bonds due 2027 have been fully converted into H shares. As a result, there are no outstanding bonds remaining, and the planned early redemption of...
WuXi AppTec Accommodates Late Bond Conversions Ahead of 2026 Early Redemption
Sep 21, 2026
WuXi AppTec has issued RMB6,780,000,000 U.S. dollar-settled zero coupon convertible bonds due 2027 linked to its H shares, using this instrument as part of its broader capital markets strategy. The bonds allow holders to convert into H shares, pro...
WuXi AppTec Sets Early Redemption Timeline for 2027 Convertible Bonds
Aug 28, 2026
WuXi AppTec has moved to redeem early its RMB6.78 billion U.S. dollar-settled zero coupon convertible bonds due 2027, of which RMB1.807 billion has already been converted, leaving RMB4.973 billion outstanding. The company has notified bondholders,...
WuXi AppTec Sells HK$3.92 Billion Stake in WuXi XDC to Bolster Core CRDMO Business
Aug 27, 2026
WuXi AppTec has sold 53,524,000 shares in its listed affiliate WuXi XDC Cayman Inc. via a block trade, representing about 4.23% of WuXi XDC’s issued share capital and generating proceeds of approximately HK$3.92 billion. The divested stake h...
WuXi AppTec Contains Cyber Breach in DNA-Encoded Library Platform
Aug 24, 2026
WuXi AppTec announced that its Biology business recently suffered a cybersecurity incident involving unauthorized access to certain data on its DNA-encoded library platform, which hosts specialized chemical compound libraries used in early-stage d...
WuXi AppTec Calls EGM to Approve Employee Stock Plan and Governance Changes
Aug 10, 2026
WuXi AppTec has called an extraordinary general meeting in Shanghai on September 29, 2026, for shareholders to vote on a series of governance and incentive measures. The agenda includes adoption of an A Share Employee Stock Ownership Plan, related...
WuXi AppTec Wins U.S. Court Injunction Against Pentagon 1260H Listing
Aug 9, 2026
WuXi AppTec has obtained a preliminary injunction from the U.S. District Court for the District of Columbia suspending the enforcement of its designation on the U.S. Department of Defense’s 1260H list. The company had filed a lawsuit challen...
WuXi AppTec Announces 2026 Mid-Year Cash Dividend and Tax Arrangements
Aug 3, 2026
WuXi AppTec Co., Ltd. has declared an interim mid-year cash dividend for the first half of 2026, set at RMB 5.1 per 10 shares for the year ending 31 December 2026, with Hong Kong shareholders receiving HKD 5.89 per 10 shares based on a specified e...
WuXi AppTec Posts Strong First-Half 2026 Results and Raises Shareholder Payout
Aug 3, 2026
WuXi AppTec reported strong unaudited interim results for the six months ended June 30, 2026, with revenue climbing 38.9% year-on-year to RMB 28.90 billion and gross profit surging 68.8% to RMB 15.38 billion. The company’s gross profit margi...
WuXi AppTec Declares RMB1.51 Billion Mid-Year Dividend for 2026
Aug 3, 2026
WuXi AppTec has declared a mid-year cash dividend for 2026, underscoring management’s confidence in the company’s future development and its solid financial position. The board approved a distribution of RMB5.10 for every 10 shares, sh...
WuXi AppTec Moves to Update Articles for Uncertificated Securities Regime
Aug 3, 2026
WuXi AppTec’s board has approved proposed amendments to its Articles of Association and an authorization framework allowing the general meeting to delegate to the board, and further to the chairman or authorized persons, the power to handle ...
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.