WuXi Biologics (Cayman) Inc

02269: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$25.80	Fqjxg	Whcwfzj

WuXi Biologics Earnings and Guidance In Line; FVE Lowered to HKD 77, Shares Cheap

Jay Lee

Mar 24, 2023

No-moat WuXi Biologics reported full-year earnings and guidance for 2023 that was in line with our expectations. We lower our fair value estimate to HKD 77 (from HKD 90) to reflect lower long-term gross profit margins as we now believe a larger share of the company’s long-term business will be handled by facilities outside of China, which have higher operating costs. We think shares are undervalued by 35%, and this is our top pick among Chinese healthcare names.

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