WuXi Biologics (Cayman) (SZSC:2269) - Share price, News & Analysis

Q: What is the Fair Price of 2269 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2269 (HK$71.8) is trading below our estimate of [[fair value]] (HK$93.35)

2269 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

2269 Stock Overview

Rewards

Trading at 23.1% below our estimate of its fair value

Earnings are forecast to grow 23.38% per year

Earnings grew by 100.6% over the past year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Significant insider selling over the past 3 months

WuXi Biologics (Cayman) Competitors

Frontage Holdings

SEHK:1521

HK$6.5b

Viva Biotech Holdings

SEHK:1873

HK$5.2b

Austar Lifesciences

SEHK:6118

HK$1.3b

Samsung BiologicsLtd

KOSE:A207940

₩55.6t

Price History & Performance

Summary of all time highs, changes and price drops for WuXi Biologics (Cayman)
Historical stock prices
Current Share Price	HK$71.80
52 Week High	HK$143.00
52 Week Low	HK$40.30
Beta	1.14
1 Month Change	25.97%
3 Month Change	3.24%
1 Year Change	-47.97%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-6.63%

Shareholder Returns

	2269	HK Life Sciences	HK Market
7D	-6.3%	-6.0%	0.5%
1Y	-48.0%	-46.7%	-20.3%

Return vs Industry: 2269 underperformed the Hong Kong Life Sciences industry which returned -46.7% over the past year.

Return vs Market: 2269 underperformed the Hong Kong Market which returned -20.3% over the past year.

Price Volatility

Is 2269's price volatile compared to industry and market?
2269 volatility
2269 Average Weekly Movement	9.9%
Life Sciences Industry Average Movement	8.7%
Market Average Movement	6.9%
10% most volatile stocks in HK Market	13.7%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 2269 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 2269's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
2014	9,864	Chris Chen	https://www.wuxibiologics.com

WuXi Biologics (Cayman) Inc. provides end-to-end solutions and services for biologics discovery, development and manufacturing in the People’s Republic of China, North America, Europe, and internationally. The company also engages in the provision of consultation services in relation to the biopharmaceutical technology, international sales contracting services, testing and development of testing technologies, sales and marketing services, and biologics clinical and manufacturing services; production and sale of medicals; vaccine CDMO and related business; and material supplier activities. WuXi Biologics (Cayman) Inc. has strategic partnership with ImmuneOncia Therapeutics, Legochem Biosciences Inc, Worg Pharma, OncoC4, and Exelixis Inc. The company was incorporated in 2014 and is headquartered in Wuxi, China.

WuXi Biologics (Cayman) Fundamentals Summary

How do WuXi Biologics (Cayman)'s earnings and revenue compare to its market cap?
2269 fundamental statistics
Market Cap	CN¥258.71b
Earnings (TTM)	CN¥3.39b
Revenue (TTM)	CN¥10.29b

76.4x

P/E Ratio

25.1x

P/S Ratio

Is 2269 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2269 income statement (TTM)
Revenue	CN¥10.29b
Cost of Revenue	CN¥5.49b
Gross Profit	CN¥4.80b
Other Expenses	CN¥1.42b
Earnings	CN¥3.39b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.80
Gross Margin	46.69%
Net Profit Margin	32.93%
Debt/Equity Ratio	8.4%

How did 2269 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 2269 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2269?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2269. This is calculated by dividing 2269's market cap by their current preferred multiple.
What is 2269's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥258.71b

2269 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	24.5x
Enterprise Value/EBITDA	69.6x
PEG Ratio	3.3x

Price to Earnings Ratio vs Peers

How does 2269's PE Ratio compare to its peers?

2269 PE Ratio vs Peers

The above table shows the PE ratio for 2269 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	46x
1521 Frontage Holdings	46.7x	28.0%	HK$6.5b
1873 Viva Biotech Holdings	15.8x	36.0%	HK$5.2b
6118 Austar Lifesciences	4x	n/a	HK$1.3b
A207940 Samsung BiologicsLtd	117.4x	12.7%	₩55.6t
2269 WuXi Biologics (Cayman)	76.4x	23.4%	HK$302.9b

Forward PE

Price-To-Earnings vs Peers: 2269 is expensive based on its Price-To-Earnings Ratio (76.4x) compared to the peer average (45x).

Price to Earnings Ratio vs Industry

How does 2269's PE Ratio compare vs other companies in the Asian Life Sciences Industry?

Price-To-Earnings vs Industry: 2269 is expensive based on its Price-To-Earnings Ratio (76.4x) compared to the Hong Kong Life Sciences industry average (15.4x)

Price to Earnings Ratio vs Fair Ratio

What is 2269'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.

2269 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	76.4x
Fair PE Ratio	25.4x

Price-To-Earnings vs Fair Ratio: 2269 is expensive based on its Price-To-Earnings Ratio (76.4x) compared to the estimated Fair Price-To-Earnings Ratio (25.4x).

Share Price vs Fair Value

What is the Fair Price of 2269 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2269 (HK$71.8) is trading below our estimate of fair value (HK$93.35)

Significantly Below Fair Value: 2269 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 2269 is poor value based on its PEG Ratio (3.3x)

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Future Growth

How is WuXi Biologics (Cayman) forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2269's forecast earnings growth (23.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 2269's earnings (23.4% per year) are forecast to grow faster than the Hong Kong market (16.5% per year).

High Growth Earnings: 2269's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2269's revenue (23.8% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 2269's revenue (23.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2269's Return on Equity is forecast to be low in 3 years time (17.3%).

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Past Performance

How has WuXi Biologics (Cayman) performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

53.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2269 has a high level of non-cash earnings.

Growing Profit Margin: 2269's current net profit margins (32.9%) are higher than last year (30.1%).

Past Earnings Growth Analysis

Earnings Trend: 2269's earnings have grown significantly by 53.8% per year over the past 5 years.

Accelerating Growth: 2269's earnings growth over the past year (100.6%) exceeds its 5-year average (53.8% per year).

Earnings vs Industry: 2269 earnings growth over the past year (100.6%) exceeded the Life Sciences industry 45.8%.

Return on Equity

High ROE: 2269's Return on Equity (10.7%) is considered low.

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Financial Health

How is WuXi Biologics (Cayman)'s financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2269's short term assets (CN¥19.5B) exceed its short term liabilities (CN¥8.3B).

Long Term Liabilities: 2269's short term assets (CN¥19.5B) exceed its long term liabilities (CN¥3.1B).

Debt to Equity History and Analysis

Debt Level: 2269 has more cash than its total debt.

Reducing Debt: 2269's debt to equity ratio has reduced from 351.5% to 8.4% over the past 5 years.

Debt Coverage: 2269's debt is well covered by operating cash flow (124.2%).

Interest Coverage: 2269 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is WuXi Biologics (Cayman) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.07%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2269's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2269's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2269's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2269's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2269 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure

CEO

Chris Chen (49 yo)

6.5yrs

Tenure

CN¥50,794,000

Compensation

Dr. Zhisheng Chen, also known as Chris, has been the Chief Executive Officer & Executive Director at WuXi Biologics (Cayman) Inc. since January 01, 2016 and since February 27, 2014 respectively. Dr. Chen i...

CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD7.58M) is above average for companies of similar size in the Hong Kong market ($USD1.06M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 2269's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: 2269's board of directors are considered experienced (5.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 2269 insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31