UOB Kay Hian Private Limited
Date of Report: Thursday, 21 August 2025
WuXi Biologics (Cayman) Delivers Robust 1H25 Results, Raises Growth Guidance for 2025
Overview: Leading Biologics CDMO Accelerates Growth Momentum
WuXi Biologics (Cayman) Inc. (2269 HK), a premier biologics outsourcing service provider, has posted impressive results for the first half of 2025. The company continues its rapid expansion with strong financial performance, increased project wins, and a clear vision for global capacity growth. UOB Kay Hian maintains its BUY rating, upgrading the target price to HK\$38.00, reflecting high confidence in WuXi Bio’s future prospects.
Stock Profile and Recent Performance Highlights
- Share Price: HK\$30.62
- Target Price: HK\$38.00 (previously HK\$33.00)
- Upside: +24.1%
- Market Cap: HK\$124.6 billion (approx. US\$16 billion)
- Shares Issued: 4,070.5 million
- Sector: Health Care
- 52-week High/Low: HK\$35.6 / HK\$10.14
- Major Shareholder: WuXi Biologics Holdings (12.3%)
- FY25E NAV/Share: RMB 11.53
- FY25E Net Cash/Share: RMB 1.22
- Price Performance:
- 1 Month: +7.3%
- 3 Months: +26.8%
- 6 Months: +30.6%
- 1 Year: +156.9%
- YTD: +74.4%
1H25 Financial Results: Satisfactory Performance and Upbeat Guidance
WuXi Biologics delivered strong 1H25 results, exceeding consensus expectations. Revenue surged 16.1% year-over-year to RMB 9.95 billion, propelled by a significant increase in new integrated projects and expansion of Phase 3 and commercial-stage projects. Adjusted net profit rose 6.2% year-over-year to RMB 2.39 billion.
| Metric |
1H25 |
1H24 |
YoY Change |
| Revenue (RMBm) |
9,953.2 |
8,574.2 |
+16.1% |
| Gross Profit (RMBm) |
4,252.9 |
3,350.0 |
+27.0% |
| Selling Expenses (RMBm) |
270.1 |
223.1 |
+21.1% |
| G&A Expenses (RMBm) |
781.1 |
773.0 |
+1.1% |
| R&D Expenses (RMBm) |
343.5 |
344.1 |
-0.2% |
| Operating Profit (EBIT) (RMBm) |
3,236.3 |
1,884.5 |
+71.7% |
| Net Profit (RMBm) |
2,339.3 |
1,499.1 |
+56.0% |
| Adjusted Net Profit (RMBm) |
2,388.8 |
2,250.3 |
+6.2% |
| Gross Profit Margin |
42.7% |
39.1% |
+3.7ppt |
| Net Profit Margin |
23.5% |
17.5% |
+6.0ppt |
| Adjusted Net Margin |
24.0% |
26.2% |
-2.2ppt |
Regional Revenue Breakdown: North America Leads Growth
- North America: 60.5% of 1H25 revenue, up 20.1% YoY
- Europe: 19.8% of revenue, up 5.7% YoY
- China: 13.0% of revenue, down 8.5% YoY (would be a single-digit increase if excluding out-licensing impact)
- Rest of World: Revenue more than doubled, driven by Japan and Korea
Project Pipeline Expansion and Market Share Gains
- 86 new projects secured in 1H25 (total projects: 864 as of end-June 2025)
- WuXi Biologics won nine new projects from competitors, including two Phase 3 projects
- Current pipeline includes 67 Phase 3 and 24 commercial-stage projects fueling future revenue
- Management raises 2025 revenue growth guidance to 14-16% YoY (previously 12-15%)
- Anticipates even faster growth from 2026 onwards, as more projects reach commercialization
Profitability Enhancements and Margin Strength
- Gross profit margin rose 3.7ppt to 42.7% in 1H25, thanks to cost optimization, digitalization, and higher facility utilization
- Selling expenses increased 21.1% due to aggressive talent acquisition and global market expansion
- Administrative expenses remained flat YoY, reflecting operating efficiency improvements
- Further gross margin improvement expected as utilization of US and Singapore facilities ramps up in 2H25 and 2026
Global Capacity Expansion: Building for the Future
WuXi Biologics is intensifying its global footprint, especially in the US and Singapore. The company’s strategy focuses on strengthening local presence, enhancing client service, and supporting rising demand with increased production capacity.
| Region |
Facility Type |
Targeted Capacity (Litres) |
| U.S. |
Research (R), Development (D), Manufacturing (M) |
42,000 |
| Ireland |
Manufacturing (M) |
54,000 |
| Germany |
Manufacturing (M) |
24,000 |
| Singapore |
Development (D) and Manufacturing (M) |
120,000* |
| China |
Research (R), Development (D), Manufacturing (M) |
251,000 |
*Singapore capacity planned to expand to 240,000L in the next few years
- Capex in 1H25 reached RMB 1.9 billion; expected to hit RMB 5.3 billion in 2025 (vs RMB 3.9 billion in 2024)
- Cash reserves of RMB 11.6 billion (end-Jun 2025), supporting expansion plans and expected significant free cash flow in 2025
Financial Forecasts and Key Metrics
WuXi Biologics’ strong operational performance is reflected in its robust financial projections.
| Metric |
2024 |
2025F |
2026F |
2027F |
| Net Turnover (RMBm) |
18,675 |
21,495 |
25,233 |
28,766 |
| EBITDA (RMBm) |
6,039 |
8,042 |
9,722 |
11,188 |
| Operating Profit (RMBm) |
4,642 |
6,250 |
7,635 |
8,877 |
| Net Profit (Adj., RMBm) |
4,784 |
5,098 |
6,444 |
7,333 |
| EPS (Fen) |
113.2 |
121.8 |
154.0 |
175.2 |
| PE (x) |
24.8 |
23.1 |
18.3 |
16.1 |
| Net Margin (%) |
18.0 |
20.8 |
21.7 |
22.1 |
| ROE (%) |
8.2 |
10.1 |
10.9 |
11.1 |
| Net Debt/(Cash) to Equity (%) |
-13.5 |
-10.6 |
-15.1 |
-22.2 |
Earnings Revision and Risk Analysis
- Revenue growth forecast for 2025 revised upward from 13.6% to 15.1% YoY
- Gross margin assumption for 2025 adjusted from 42.5% to 42.9% reflecting production efficiency gains
- Risks to watch:
- Potential escalation of US-China tensions
- Slower-than-expected recovery in global biotech funding
- Operational risks in overseas expansion
Valuation and Recommendation
- BUY rating maintained with increased target price of HK\$38.00
- Valuation based on DCF model (WACC: 10.0%, terminal growth rate: 5%)
Key Takeaways for Investors
- WuXi Biologics continues to outperform with strong revenue and profit growth
- Robust project pipeline and market share gains underpin future prospects
- Global capacity expansion and margin improvement strategies are well underway
- Financial strength and operational efficiency support aggressive growth targets
- UOB Kay Hian’s upgraded BUY rating and higher price target reflect confidence in sustained momentum
