Has WuXi Biologics (Cayman) Inc.'s (HKG:2269) Impressive Stock Performance Got Anything to Do With Its Fundamentals?

Simply Wall St.11-20

WuXi Biologics (Cayman) (HKG:2269) has had a great run on the share market with its stock up by a significant 34% over the last three months. As most would know, fundamentals are what usually guide ...

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As most would know, fundamentals are what usually guide ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/pharmaceuticals-biotech/hkg-2269/wuxi-biologics-cayman-shares/news/has-wuxi-biologics-cayman-incs-hkg2269-impressive-stock-perf-1\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Has WuXi Biologics (Cayman) Inc.'s (HKG:2269) Impressive Stock Performance Got Anything to Do With Its Fundamentals?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHas WuXi Biologics (Cayman) Inc.'s (HKG:2269) Impressive Stock Performance Got Anything to Do With Its Fundamentals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-20 06:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/pharmaceuticals-biotech/hkg-2269/wuxi-biologics-cayman-shares/news/has-wuxi-biologics-cayman-incs-hkg2269-impressive-stock-perf-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>WuXi Biologics (Cayman) (HKG:2269) has had a great run on the share market with its stock up by a significant 34% over the last three months.   As most would know, fundamentals are what usually guide ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/pharmaceuticals-biotech/hkg-2269/wuxi-biologics-cayman-shares/news/has-wuxi-biologics-cayman-incs-hkg2269-impressive-stock-perf-1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1589","symbol_name":"北水核心资产","start_time":0,"source_url":"https://simplywall.st/stocks/hk/pharmaceuticals-biotech/hkg-2269/wuxi-biologics-cayman-shares/news/has-wuxi-biologics-cayman-incs-hkg2269-impressive-stock-perf-1","article_id":"2484131482","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551728-choice1-main-header/1585186657000"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484131482","pubTimestamp":1732056556,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"WuXi Biologics (Cayman) (HKG:2269) has had a great run on the share market with its stock up by a significant 34% over...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1589":"北水核心资产","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU0417516738.SGD":"Allianz Hong Kong Equity AT Acc SGD","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","LU0856984785.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"ACH\" (SGDHDG) ACC","02269":"药明生物","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","SG9999002562.SGD":"LionGlobal Asia Pacific SGD","LU0819121731.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"AC\" (USD) ACC","SG9999002463.SGD":"LionGlobal China Growth SGD","LU1720050803.USD":"安联全方位中国股票基金","LU0456827905.SGD":"JPMorgan Funds - China A (acc) SGD","LU0572944931.SGD":"Janus Henderson Horizon China Opportunities A2 SGD","LU0307460666.USD":"EASTSPRING INVESTMENTS CHINA EQUITY \"A\" ACC","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU0823426308.USD":"法巴中国股票基金","LU0588546209.SGD":"Eastspring Investments - China Equity Fund AS SGD","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU1794554557.SGD":"Allianz All China Equity AT Acc H2-SGD","LU2039709279.SGD":"MANULIFE GF DRAGON GROWTH \"AA\" (SGDHDG) INC","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0456846285.SGD":"JPMorgan Funds - Greater China A (acc) SGD","LU0051755006.USD":"摩根大通中国A (dist)","LU1688375341.USD":"贝莱德中国灵活股票基金","LU0516423174.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (USD) ACC","LU0327786744.USD":"Janus Henderson Horizon China Opportunities A2 USD","BK1610":"ETF&股票定投概念","LU0326950275.SGD":"Schroder ISF China Opportunities A Acc SGD-H","BK1521":"挪威政府全球养老基金持仓","LU0181495838.USD":"施罗德新兴亚洲A Acc","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0043850808.USD":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","LU0823426480.USD":"法巴中国股票经典Dis","LU0052750758.USD":"富兰克林中国基金A Acc","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","LU0359201612.USD":"贝莱德中国基金A2","BK1141":"生命科学工具和服务","BK1576":"医药外包概念","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0039217434.USD":"HSBC GIF CHINESE EQUITY \"AD\" INC","LU0516422952.EUR":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (EUR) ACC","LU0140636845.USD":"施罗德大中华区股票A Acc"},"translate_title":"药明生物（开曼）股份有限公司（HKG：2269）令人印象深刻的股票表现与其基本面有关系吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"02269":1},"content_text":"WuXi Biologics (Cayman) (HKG:2269) has had a great run on the share market with its stock up by a significant 34% over the last three months.   As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement.      In this article, we decided to focus on WuXi Biologics (Cayman)'s  ROE.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.  See our latest analysis for WuXi Biologics (Cayman)  How To Calculate Return On Equity?  Return on equity can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for WuXi Biologics (Cayman) is:6.7% = CN¥3.0b ÷ CN¥45b (Based on the trailing twelve months to June 2024). The 'return' is the yearly profit.  One way to conceptualize this is that for each HK$1 of shareholders' capital it has, the company made HK$0.07 in profit.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  We now need to evaluate how much profit the company reinvests or \"retains\" for future growth which then gives us an idea about the growth potential of the company.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.  WuXi Biologics (Cayman)'s Earnings Growth And 6.7% ROE   At first glance, WuXi Biologics (Cayman)'s ROE doesn't look very promising.   However, its ROE is similar to the industry average of 7.7%, so we won't completely dismiss the company.   Moreover, we are quite pleased to see that WuXi Biologics (Cayman)'s net income grew significantly at a rate of 24% over the last five years.  Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth.  For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.     Next, on comparing WuXi Biologics (Cayman)'s net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 21% over the last few years.   SEHK:2269 Past Earnings Growth November 19th 2024 Earnings growth is an important metric to consider when valuing a stock.   The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    If you're wondering about WuXi Biologics (Cayman)'s's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is WuXi Biologics (Cayman) Efficiently Re-investing Its Profits?   WuXi Biologics (Cayman) doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.     Summary    In total, it does look like WuXi Biologics (Cayman) has some positive aspects to its business.      Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business.       Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates.     Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Valuation is complex, but we're here to simplify it.Discover if WuXi Biologics (Cayman) might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484131482"}