WuXi XDC Cayman Valuation

Q: What is the Fair Price of 2268 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2268 (HK$24.55) is trading below our estimate of [[fair value]] (HK$38.19)

Is 2268 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2268 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2268 (HK$24.55) is trading below our estimate of fair value (HK$38.19)

Significantly Below Fair Value: 2268 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2268?

Key metric: As 2268 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2268. This is calculated by dividing 2268's market cap by their current earnings.
What is 2268's PE Ratio?
PE Ratio	46.1x
Earnings	CN¥594.55m
Market Cap	CN¥27.38b

2268 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.6x
Enterprise Value/EBITDA	36.7x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

How does 2268's PE Ratio compare to its peers?

The above table shows the PE ratio for 2268 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20x
2269 WuXi Biologics (Cayman)	20.9x	17.9%	HK$59.1b
1521 Frontage Holdings	45.2x	64.8%	HK$2.1b
3320 China Resources Pharmaceutical Group	8x	7.3%	HK$32.5b
3933 United Laboratories International Holdings	5.7x	3.9%	HK$17.9b
2268 WuXi XDC Cayman	46.1x	27.5%	HK$29.4b

Price-To-Earnings vs Peers: 2268 is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

How does 2268's PE Ratio compare vs other companies in the Asian Life Sciences Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2268 is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the Asian Life Sciences industry average (31.9x).

Price to Earnings Ratio vs Fair Ratio

What is 2268's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2268 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	46.1x
Fair PE Ratio	16.7x

Price-To-Earnings vs Fair Ratio: 2268 is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2268 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$24.55	HK$30.27 +23.3%	19.2%	HK$42.37	HK$17.93	n/a	12
Nov ’25	HK$22.60	HK$30.43 +34.6%	20.0%	HK$42.98	HK$18.00	n/a	12
Oct ’25	HK$23.35	HK$30.44 +30.4%	19.7%	HK$43.62	HK$18.05	n/a	12
Sep ’25	HK$20.05	HK$30.16 +50.4%	19.5%	HK$43.15	HK$18.01	n/a	12
Aug ’25	HK$17.90	HK$30.73 +71.7%	19.9%	HK$40.69	HK$18.00	n/a	12
Jul ’25	HK$17.30	HK$30.97 +79.0%	19.8%	HK$40.66	HK$18.00	n/a	12
Jun ’25	HK$15.32	HK$31.12 +103.2%	19.8%	HK$40.88	HK$18.00	n/a	12
May ’25	HK$21.90	HK$30.98 +41.5%	20.7%	HK$40.86	HK$18.00	n/a	11
Apr ’25	HK$18.30	HK$29.48 +61.1%	22.6%	HK$40.94	HK$17.99	n/a	11
Mar ’25	n/a	HK$40.23 0%	6.4%	HK$47.38	HK$37.00	n/a	11
Feb ’25	n/a	HK$40.28 0%	6.4%	HK$47.46	HK$37.00	n/a	11
Jan ’25	n/a	HK$39.57 0%	11.5%	HK$47.72	HK$28.49	n/a	10

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

3SBio

HK$13.0b

An investment holding company, develops, produces markets, and sells biopharmaceutical products in Mainland China and internationally.

1530

HK$5.52

-4.3%

-26.2%

China Shineway Pharmaceutical Group

HK$6.1b

An investment holding company, engages in the research and development, manufacture, and trade of Chinese medicines in the People’s Republic of China and Hong Kong.

2877

HK$8.13

-3.3%

n/a

Consun Pharmaceutical Group

HK$6.8b

Researches and develops, manufactures, and sells Chinese medicines and medical contrast medium products in the People’s Republic of China.

1681

HK$8.22

-2.1%

74.9%