Zhong Guo Ji Jin Bao·2025-07-29 05:25Core Viewpoint - The pharmaceutical sector is experiencing a significant surge, particularly in the areas of CRO (Contract Research Organization) and innovative drugs, with many companies reporting strong mid-year earnings and profit forecasts [5][9]. Market Performance - The A-share market saw a mixed performance with the ChiNext index rising by 0.92%, while the Shanghai Composite Index and Shenzhen Component Index fell slightly by 0.08% and 0.04% respectively [2]. - The total trading volume in the Shanghai and Shenzhen markets exceeded 1.13 trillion yuan, an increase of 67 billion yuan compared to the previous day [2]. Sector Highlights - The pharmaceutical sector, including CRO, innovative drugs, weight loss drugs, and generic drugs, showed strong performance with CRO stocks rising by 5.7%, innovative drugs by 2.91%, weight loss drugs by 2.46%, and generic drugs by 2.17% [3][6]. - Conversely, the agricultural sector and several other industries such as daily chemicals, fertilizers, and petrochemicals experienced declines [2]. Individual Stock Performance - Notable individual stock performances included: - Zhaoyan New Drug rising by 16.31% - Microchip Biotech increasing by 13.29% - Jiuzhou Pharmaceutical hitting the daily limit [6]. - WuXi AppTec saw its H-shares rise by 10.56% and A-shares by 6.3%, following the announcement of a 20.64% year-on-year increase in revenue to 20.8 billion yuan and a 101.92% increase in net profit [8]. Earnings Forecasts - Many pharmaceutical companies are projecting strong earnings for the first half of 2025, with some expecting profit increases of over 400% [9]. - WuXi AppTec has adjusted its revenue growth forecast for its ongoing business from 10%-15% to 13%-17%, with total revenue expectations revised from 41.5 billion to 43.5 billion yuan [8].