CXO&科研试剂：低谷已过，复苏将至

Investment Rating - The report maintains a strong buy rating for the CXO and life science services sector, indicating a positive outlook for investment opportunities in this industry [1]. Core Views - The CXO and life science services sectors are crucial for pharmaceutical R&D and basic scientific research, driving innovation in medical technology. After a period of downturn due to various factors, the industry is expected to recover, with performance and valuation on the rise. The global interest rate cuts and a recovering investment market are likely to stabilize growth in R&D and production demands from large pharmaceutical and biotech companies [2][3]. - The CXO sector has shown signs of recovery, with revenue and gross margins increasing for two consecutive quarters. The capital expenditure in the industry has decreased since 2023, indicating a shift towards stable growth. The number of new orders and contract liabilities for CXO companies is also on the rise, suggesting a positive trend in the fundamentals of the sector [2][4][7]. Summary by Sections CXO Sector - The CXO sector's revenue for the first three quarters of 2024 totaled 67.03 billion yuan, reflecting a year-on-year decline of 7.5%. However, the revenue for Q3 2024 was 24.02 billion yuan, showing a slight year-on-year decrease of 0.4% but a quarter-on-quarter increase of 8.46% [4][5]. - The gross margin for the CXO sector was 38.83% for the first three quarters of 2024, down 3.55 percentage points year-on-year, but showing a quarterly recovery trend [7]. - Major CXO companies are expected to benefit from the recovery in the investment market, with CDMO services leading the way. The demand for clinical CRO services is anticipated to rebound as the domestic investment market recovers [3][39]. Life Science Services - The life science services sector, particularly the research reagent segment, has shown a revenue growth of 5.5% year-on-year for the first three quarters of 2024, with Q3 revenue remaining stable [8][10]. - The profitability of the research reagent sector is under pressure due to ongoing expenses, with net profit for the first three quarters of 2024 declining by 36.6% year-on-year [10][12]. - The report suggests that the research reagent industry may undergo consolidation through mergers and acquisitions, which could enhance market share and operational scale for companies with diverse product lines and strong brand recognition [41]. Investment Recommendations - Key beneficiaries in the CXO sector include companies like Tigermed, WuXi AppTec, and Kelun Pharmaceutical, which are expected to see improved performance as the market recovers [3][39]. - In the research reagent sector, companies such as Aladdin are highlighted as potential beneficiaries of the accelerating domestic substitution trend [41].