# WuXi AppTec (603259.SHG)

Canonical: https://gigainvestors.com/s/603259.SHG

Analysis as of: 2026-10-16T07:33:47.479Z. Financial observations: FY2014–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 154.50 per share; close as of 2026-10-15.

Estimated value: low CNY 64.32 per share, central CNY 85.45 per share, high CNY 97.75 per share. Buy at or below the central value CNY 85.45 per share. Valuation as of 2026-10-16T07:33:47.479Z; scenarios are not confidence intervals.

Expected annual return: 6.6% at the stated quote. About 6.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.19×

- FY2018: 0.27×

- FY2019: 0.18×

- FY2020: 0.20×

- FY2021: 0.26×

- FY2022: 0.27×

- FY2023: 0.31×

- FY2024: 0.35×

- FY2025: 0.37×

### moat: pass

- ROIC, median of available years: 21.7%

- ROIC, second-lowest year: 13.5%

- Typical minus recent gross margin: -4.3 pp

- Typical gross margin (annual median): 39.2%

- Recent gross margin (lower of latest and 3-year median): 43.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.9%

- ROIC including acquisitions, ten-year median: 15.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 58.3%

- FY2017: 28.1%

- FY2018: 22.4%

- FY2019: 11.6%

- FY2020: 13.5%

- FY2021: 15.4%

- FY2022: 21.1%

- FY2023: 20.9%

- FY2024: 26.7%

- FY2025: 29.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.85×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 44B

- Net income, five-year total: CNY 52B

- Return on incremental invested capital: 31.1%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.8 pp

- Working capital / revenue, final three-year average: 33.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.56×

- FY2022: 0.98×

- FY2023: 0.62×

- FY2024: 0.82×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 28.1% vs 26.7%

- Per-share earnings: 0.46 to 3.26 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.3%

- Ordinary dilution, 5-year annual growth: -3.0%

- Market cap gain: CNY 140B

- Cumulative retained earnings: CNY 41B

- Diluted shares, 10-year annual growth: 1.3%

- Diluted shares, 5-year annual growth: -3.0%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 27.8%

- Per-share value change: CNY 2.80

- Per-share value, starting three-year median: CNY 0.46

- Per-share value, ending three-year median: CNY 3.26

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 2.2%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 3.1B

- Cumulative net income, 10 years: CNY 61B

- ROIC, first three-year median: 28.1%

- ROIC, last three-year median: 26.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.46

- FY2017: CNY 0.55

- FY2018: CNY 0.92

- FY2019: CNY 0.67

- FY2020: CNY 1.06

- FY2021: CNY 1.64

- FY2022: CNY 2.84

- FY2023: CNY 3.20

- FY2024: CNY 3.26

- FY2025: CNY 7.99

### accounting: pass

- Sloan accruals: 1.5%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.92×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.4%

- FY2017: -4.5%

- FY2018: 2.7%

- FY2019: -3.6%

- FY2020: -2.2%

- FY2021: 0.9%

- FY2022: -2.8%

- FY2023: -5.1%

- FY2024: -3.7%

- FY2025: 1.5%

## Holders

## Price story

Price needs cash profits to grow 15.2% a year for ten years · sales +14.5%

Story as of 2026-10-16T09:59:57.767Z; price observation 2026-10-15.

Price needs cash profits to grow 15.2% a year for ten years

### Sales · FY2024–2025

sales +14.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 6.1B 

- FY2017: CNY 7.8B 

- FY2018: CNY 9.6B 

- FY2019: CNY 13B 

- FY2020: CNY 17B 

- FY2021: CNY 23B 

- FY2022: CNY 39B 

- FY2023: CNY 39B 

- FY2024: CNY 38B 

- FY2025: CNY 43B 

### Gross margin · FY2025

gross margin 48.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 40.7% 

- FY2017: 41.8% 

- FY2018: 39.4% 

- FY2019: 38.9% 

- FY2020: 37.9% 

- FY2021: 36.1% 

- FY2022: 37.2% 

- FY2023: 38.6% 

- FY2024: 43.5% 

- FY2025: 48.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are CNY 43.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2025: revenue 43420824000; grossProfit 20970503000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603259.SHG: WuXi AppTec Co., Ltd., an investment holding company, provides research and manufacturing services to discover, develop, and manufacture spectrum for small molecule drugs in the People's Republic of China, the United States, Europe, and internationally. The company operates through WuXi Chemistry, WuXi Testing, WuXi Biology, and Others segments. It offers contract research, development, and manufacturing organization (CDRMO) services for new drug development from discovery to commercial covering various categories for various synthetic molecular modalities, including small molecules, oligonucleotides, peptides, and complex conjugates; and biology services and solutions which support stand-alone and integrated projects from target discovery to candidate selection and into the clinic. The company also provides laboratory testing services, such as toxicology, DMPK, and bioanalytical services; clinical contract research organization services, including Phase I to Phase IV clinical development services, and bioequivalence for products including pharmaceuticals and biologics; and site management organization, patient recruitment, site start-up, and academic research organization. In addition, it offers services for biology; CDRMO platform for small molecules, oligonucleotides, and peptides; drug research and development testing; and clinical research services. WuXi AppTec Co., Ltd. was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

### Why customers stay

Margins ranged from 38.6% to 48.3% during 2023–25; it earns 21.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2023: grossProfit / revenue = 38.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2024: grossProfit / revenue = 43.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2025: grossProfit / revenue = 48.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); 10-year return on capital observations [[2016,0.5829353362352075],[2017,0.2808291673999071],[2018,0.22374106389331913],[2019,0.11601313884513346],[2020,0.1354614331066229],[2021,0.15425777491482418],[2022,0.2109066531735407],[2023,0.2086197719095806],[2024,0.26724077892524994],[2025,0.29277311473277384]]; median 0.21732385853342992. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 10.6% of cash earnings on expansion; earns 31.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2016: growth capex 566744580.9205788; upkeep 390939944.07942116; owner earnings 914390630.9205788. Growth capex / owner earnings = 0.6198057610782809.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2017: growth capex 763848742.9362111; upkeep 599432426.0637889; owner earnings 1030442309.9362111. Growth capex / owner earnings = 0.7412823945316227.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2018: growth capex 905633251.7863679; upkeep 1343261313.213632; owner earnings 1461666968.786368. Growth capex / owner earnings = 0.6195893258355023.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2019: growth capex 1688384940.0860586; upkeep 843413769.9139414; owner earnings 1702510638.0860586. Growth capex / owner earnings = 0.9917030192446374.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2020: growth capex 2014308676.161248; upkeep 1016726618.838752; owner earnings 2760763212.161248. Growth capex / owner earnings = 0.7296202250479705.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2021: growth capex 3839126710.625276; upkeep 3096959289.374724; owner earnings 2872607964.351276. Growth capex / owner earnings = 1.336460372688645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2022: growth capex 8471281000; upkeep 1494407000; owner earnings 8616949248.312. Growth capex / owner earnings = 0.9830951483971505.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2023: growth capex 0; upkeep 5516559000; owner earnings 5929937560.926001. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2024: growth capex 0; upkeep 4003493000; owner earnings 7794711814.276. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2025: growth capex 2024632000; upkeep 3513519000; owner earnings 19096627669.026. Growth capex / owner earnings = 0.10602039454766538.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); Incremental return on capital 0.310872519051507, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); Dividend observations: [[2016,46006812],[2017,40311030],[2018,83347333],[2019,730477417],[2020,638115045],[2021,912744000],[2022,1598433000],[2023,2755792000],[2024,3084877000],[2025,4875135000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); FY2025: cash repurchases 4289244000 CNY.

### Are managers owners

Insiders own 17.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603259.SHG SharesStats.PercentInsiders = 17.901 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15.2% yearly over ten years; actual growth was 70.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.479Z); Ten-year compound average after fade. Initial solved rate 0.20675149510919044. Price 154.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.03888083430354122 → FY2025 7.953627440039884. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2018-06: CNY 40.37 per share

- 2018-07: CNY 34.51 per share

- 2018-08: CNY 35.93 per share

- 2018-09: CNY 39.35 per share

- 2018-10: CNY 37.05 per share

- 2018-11: CNY 33.91 per share

- 2018-12: CNY 31.83 per share

- 2019-01: CNY 32.11 per share

- 2019-02: CNY 38.21 per share

- 2019-03: CNY 39.89 per share

- 2019-04: CNY 37.64 per share

- 2019-05: CNY 33.67 per share

- 2019-06: CNY 36.85 per share

- 2019-07: CNY 38.68 per share

- 2019-08: CNY 51.61 per share

- 2019-09: CNY 51.61 per share

- 2019-10: CNY 55.99 per share

- 2019-11: CNY 52.38 per share

- 2019-12: CNY 54.83 per share

- 2020-01: CNY 57.02 per share

- 2020-02: CNY 63.10 per share

- 2020-03: CNY 53.86 per share

- 2020-04: CNY 60.58 per share

- 2020-05: CNY 63.39 per share

- 2020-06: CNY 80.50 per share

- 2020-07: CNY 94.17 per share

- 2020-08: CNY 91.59 per share

- 2020-09: CNY 84.58 per share

- 2020-10: CNY 93.93 per share

- 2020-11: CNY 86.11 per share

- 2020-12: CNY 112.27 per share

- 2021-01: CNY 138.62 per share

- 2021-02: CNY 119.73 per share

- 2021-03: CNY 116.83 per share

- 2021-04: CNY 132.29 per share

- 2021-05: CNY 139.33 per share

- 2021-06: CNY 156.59 per share

- 2021-07: CNY 150.00 per share

- 2021-08: CNY 132.80 per share

- 2021-09: CNY 152.80 per share

- 2021-10: CNY 138.01 per share

- 2021-11: CNY 144.00 per share

- 2021-12: CNY 118.58 per share

- 2022-01: CNY 104.80 per share

- 2022-02: CNY 103.93 per share

- 2022-03: CNY 112.38 per share

- 2022-04: CNY 103.23 per share

- 2022-05: CNY 95.31 per share

- 2022-06: CNY 103.99 per share

- 2022-07: CNY 93.40 per share

- 2022-08: CNY 89.65 per share

- 2022-09: CNY 71.69 per share

- 2022-10: CNY 76.40 per share

- 2022-11: CNY 78.00 per share

- 2022-12: CNY 81.00 per share

- 2023-01: CNY 93.25 per share

- 2023-02: CNY 82.68 per share

- 2023-03: CNY 79.50 per share

- 2023-04: CNY 67.53 per share

- 2023-05: CNY 65.00 per share

- 2023-06: CNY 62.31 per share

- 2023-07: CNY 71.67 per share

- 2023-08: CNY 81.50 per share

- 2023-09: CNY 86.18 per share

- 2023-10: CNY 86.51 per share

- 2023-11: CNY 82.60 per share

- 2023-12: CNY 72.76 per share

- 2024-01: CNY 54.20 per share

- 2024-02: CNY 54.48 per share

- 2024-03: CNY 46.18 per share

- 2024-04: CNY 43.67 per share

- 2024-05: CNY 42.11 per share

- 2024-06: CNY 39.19 per share

- 2024-07: CNY 42.54 per share

- 2024-08: CNY 39.18 per share

- 2024-09: CNY 52.36 per share

- 2024-10: CNY 52.00 per share

- 2024-11: CNY 50.14 per share

- 2024-12: CNY 55.04 per share

- 2025-01: CNY 55.36 per share

- 2025-02: CNY 61.13 per share

- 2025-03: CNY 67.32 per share

- 2025-04: CNY 59.17 per share

- 2025-05: CNY 63.51 per share

- 2025-06: CNY 69.55 per share

- 2025-07: CNY 96.27 per share

- 2025-08: CNY 103.30 per share

- 2025-09: CNY 112.03 per share

- 2025-10: CNY 99.40 per share

- 2025-11: CNY 91.19 per share

- 2025-12: CNY 90.64 per share

- 2026-01: CNY 95.20 per share

- 2026-02: CNY 98.01 per share

- 2026-03: CNY 98.10 per share

- 2026-04: CNY 109.55 per share

- 2026-05: CNY 101.60 per share

- 2026-06: CNY 124.51 per share

- 2026-07: CNY 128.43 per share

- 2026-08: CNY 154.78 per share

- 2026-09: CNY 167.34 per share

- 2026-10: CNY 156.14 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 8.84 per share, central CNY 9.63 per share, high CNY 10.67 per share

- FY2019: low CNY 9.17 per share, central CNY 10.10 per share, high CNY 11.34 per share

- FY2020: low CNY 14.89 per share, central CNY 16.22 per share, high CNY 18.00 per share

- FY2021: low CNY 13.40 per share, central CNY 14.87 per share, high CNY 16.84 per share

- FY2022: low CNY 23.88 per share, central CNY 26.79 per share, high CNY 30.66 per share

- FY2023: low CNY 25.93 per share, central CNY 28.91 per share, high CNY 32.88 per share

- FY2024: low CNY 36.17 per share, central CNY 48.90 per share, high CNY 56.31 per share

- FY2025: low CNY 67.81 per share, central CNY 89.47 per share, high CNY 102.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:33.189Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.