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WuXi AppTec Co., Ltd. (603259.SS)

Shanghai - Shanghai Delayed Price. Currency in CNY
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71.69-0.86 (-1.19%)
At close: 03:00PM CST
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Neutralpattern detected
Previous Close72.55
Bid71.69 x 0
Ask71.70 x 0
Day's Range71.10 - 73.17
52 Week Range68.75 - 156.80
Avg. Volume27,055,907
Market Cap207.69B
Beta (5Y Monthly)0.70
PE Ratio (TTM)41.18
Earnings DateN/A
Forward Dividend & Yield0.52 (0.54%)
Ex-Dividend DateJun 09, 2022
1y Target EstN/A
  • Moody's

    WuXi AppTec Co Ltd. -- Moody's upgrades WuXi AppTec's rating to Baa2; changes outlook to stable

    Rating Action: Moody's upgrades WuXi AppTec's rating to Baa2; changes outlook to stableGlobal Credit Research - 09 Dec 2021Hong Kong, December 09, 2021 -- Moody's Investors Service has upgraded WuXi AppTec Co Ltd.'s issuer rating to Baa2 from Baa3.At the same time, Moody's has also changed the rating outlook to stable from positive."The rating upgrade reflects WuXi AppTec's consistent track record of achieving strong growth in its business," says Shawn Xiong, a Moody's Assistant Vice President and Analyst. "It also reflects our expectation that WuXi AppTec's revenue and EBITDA growth will remain strong in the coming 12-18 months, supported by favorable demand prospects for contract research organization (CRO) services in China and globally.""In addition, we expect the company will maintain its low debt leverage and excellent liquidity given its disciplined financial management, while strongly growing its business," adds Xiong.RATINGS RATIONALEWuXi AppTec's Baa2 issuer rating reflects (1) its leading market position as a CRO with a full-service pharmaceutical research and development (R&D) service platform; (2) the sector's strong growth prospects in China; (3) the company's strong credit metrics; and (4) its excellent liquidity position.On the other hand, the rating is constrained by (1) the company's relatively small scale compared with larger global peers that Moody's rates; (2) Moody's expectation that the company will remain acquisitive; and (3) the company's sensitivity to the R&D budgets of its customers and research funding availability.Moody's expects WuXi AppTec's revenue to grow by around 35%-36% and its adjusted EBITDA margin to be in the range of 25%-26% for 2021.Demand prospects for CRO services remain favorable in China and globally over the next 12-18 months, underpinned by (1) the need for pharmaceutical companies to increase efficiency and reduce R&D costs; (2) the increasing number of biotech companies, many of which lack adequate internal infrastructure; (3) and the fact that the percentage of outsourced R&D activities remains lower in China than globally.As a result, Moody's expects that WuXi AppTec's revenue will grow around 25%-30% over the next 12-18 months, while its adjusted EBITDA margin should also remain around 25%-26%.