Jingu Finance | The CRO sector is strong, with Pharmaron (03759) up 13.48%, Wuxi Apptec (02359) up 11.96%, Wuxi Bio (02269) up 11.06%, Tigermed (03347) up 7.14%, Asymchem Laboratories (06821) up 6.92%, and Joinn Laboratories (06127) up 5%.
Kaiyuan Securities stated that as the USA cuts interest rates and the domestic innovative companies face a significant decline in profits, mainly due to increased expenditure. With the support of the pharmaceutical industry, the operating performance of CXO companies is expected to gradually bottom out and rebound. Valuations are at historical lows, so the bank recommends actively positioning in the CXO direction at the current level. In terms of specific directions, the bank recommends continuous high-growth ADC and polypeptide industry chains, leading domestic clinical CRO companies, platform-leading companies with lower valuations than peers, overseas business-oriented CDMO/CRO companies, and more diverse growth-oriented generic drug CRO companies.
