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WuXi AppTec Co., Ltd. Class H
(2359)
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Rating:80Outperform
Price Target:
HK$221.00
▲(8.23% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by very strong financial performance (high margins, strong ROE, and low leverage), partially tempered by moderate cash conversion and some growth volatility. Technically, the uptrend is strong but appears overbought (high RSI/Stoch), adding near-term risk. Valuation is broadly fair (P/E ~18) with a modest dividend yield.
Positive Factors
High and durable profitability
Sustained gross and net margins near 52% and 40% indicate structural pricing power and operating leverage across services. High margins support reinvestment, buffer project cyclicality, and enable above-average returns even if revenue growth moderates.
Negative Factors
Revenue growth volatility and 2024 dip
Project-based CRDMO revenues are naturally lumpy; the 2024 revenue dip highlights visibility challenges for planning and capacity utilization. Persistent volatility complicates forecasting, capital allocation and could weigh on sustained investment or hiring decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
High and durable profitability
Sustained gross and net margins near 52% and 40% indicate structural pricing power and operating leverage across services. High margins support reinvestment, buffer project cyclicality, and enable above-average returns even if revenue growth moderates.
Read all positive factors
WuXi AppTec Co., Ltd. Class H (2359) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$542.04B
Dividend Yield1.25%
Average Volume (3M)6.88M
Price to Earnings (P/E)20.4
Beta (1Y)1.50
Revenue Growth29.92%
EPS Growth65.54%
CountryHK
Employees33,834
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)7.52
Shares Outstanding550,436,400
10 Day Avg. Volume4,858,130
30 Day Avg. Volume6,875,538
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$211.13Price Target Upside3.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)8.9
Revenue Forecast (FY)HK$69.88B
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 primarily makes money by charging pharmaceutical and biotechnology customers service fees under contract-based projects across the drug R&D and manufacturing value chain. Key revenue streams typically include: (1) research and discover...
WuXi AppTec Co., Ltd. Class H Earnings Call Summary
Earnings Call Date:Mar 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 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
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.47B | 45.46B | 39.24B | 40.34B | 39.35B | 22.90B |
| Gross Profit | 27.74B | 21.65B | 16.28B | 16.57B | 14.68B | 8.31B |
| EBITDA | 27.35B | 27.69B | 14.54B | 14.17B | 12.42B | 7.37B |
| Net Income | 21.62B | 19.15B | 9.45B | 9.61B | 8.81B | 5.10B |
Balance Sheet | ||||||
| Total Assets | 116.24B | 103.12B | 80.33B | 73.67B | 64.69B | 55.13B |
| Cash, Cash Equivalents and Short-Term Investments | 46.63B | 40.94B | 19.56B | 14.56B | 7.99B | 8.77B |
| Total Debt | 15.11B | 8.26B | 4.75B | 5.45B | 5.87B | 4.28B |
| Total Liabilities | 32.37B | 22.87B | 21.24B | 18.15B | 17.76B | 16.37B |
| Stockholders Equity | 83.32B | 79.71B | 58.63B | 55.12B | 46.59B | 38.49B |
Cash Flow | ||||||
| Free Cash Flow | 13.22B | 11.67B | 8.40B | 7.87B | 650.34M | -2.35B |
| Operating Cash Flow | 19.61B | 17.20B | 12.41B | 13.39B | 10.62B | 4.59B |
| Investing Cash Flow | -14.75B | -1.95B | -5.52B | -7.56B | -9.69B | -4.84B |
| Financing Cash Flow | 5.08B | 1.12B | -3.83B | -3.94B | -1.28B | -1.72B |
WuXi AppTec Co., Ltd. Class H Technical Analysis
Positive
204.20
Price Trends
177.48
Positive
153.61
Positive
131.78
Positive
Market Momentum
3.86
Positive
53.90
Neutral
38.98
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 204.2 is above the 20-day moving average (MA) of 197.94, above the 50-day MA of 177.48, and above the 200-day MA of 131.78, indicating a neutral trend. The MACD of 3.86 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 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$542.04B | 20.44 | 27.24% | 1.25% | 29.92% | 65.54% | |
74 Outperform | HK$202.98B | 33.60 | 10.51% | ― | 21.93% | 21.94% | |
68 Neutral | HK$71.01B | 58.74 | 5.86% | 1.08% | 16.62% | >-0.01% | |
65 Neutral | HK$73.73B | -13.67 | -16.23% | 0.35% | 53.48% | -120.02% | |
63 Neutral | HK$48.54B | 672.63 | 0.44% | 0.35% | 16.21% | -82.18% | |
61 Neutral | HK$80.94B | 42.84 | 10.96% | 0.81% | 20.39% | 26.48% | |
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 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 ...
WuXi AppTec Sets August Board Meeting to Review Interim Results and Dividend Plan
Jul 20, 2026
WuXi AppTec Co., Ltd. has scheduled a board meeting for August 3, 2026 to review and approve the unaudited interim results for the six months ended June 30, 2026. The board will also consider the publication of these mid-year figures and evaluate ...
WuXi AppTec Revamps Hong Kong Company Secretarial and Process Agent Roles
Jul 1, 2026
WuXi AppTec announced a change in its Hong Kong company secretarial and process agent arrangements, reflecting routine adjustments in its corporate governance structure. The move underscores the company’s ongoing compliance with Hong Kong li...
WuXi AppTec Completes RMB1 Billion A-Share Buyback for Employee Plan
Jun 26, 2026
WuXi AppTec has completed a 2026 share repurchase program of its A shares, funded with RMB1 billion of self-owned capital and conducted via bidding for an employee stock ownership plan. The move underscores the company’s use of buybacks as a...
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...
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.