Investment Rating - The report assigns an "Overweight" rating to the pharmaceutical industry, indicating a positive outlook for investment opportunities [2]. Core Insights - The negative factors affecting the valuation of leading Chinese CXO companies have been eliminated following the failure to include the Biodefense Act in the National Defense Authorization Act (NDAA) [3]. - The financing and demand sides of the CXO industry are expected to continue improving, with a favorable environment for pharmaceutical investments anticipated in 2025 [4]. - The report highlights the growth potential of leading Contract Research Organizations (CROs) and recommends focusing on WuXi AppTec A, WuXi AppTec H, and WuXi Biologics [4]. Summary by Sections Industry Overview - The failure to include the Biodefense Act in the NDAA signifies the removal of short-term negative valuation factors for the CXO industry [3]. - The global pharmaceutical research and development sector is recovering, which is expected to enhance profit margins for leading CXO companies while maintaining long-term growth [4]. Financial Environment - The Federal Reserve's decision to lower the federal funds rate target range to 4.50% to 4.75% is anticipated to improve the investment environment for pharmaceuticals in 2025 [4]. - The rapid growth of peptide drugs represented by GLP-1 and the continuous expansion of the ADC market are expected to bring new business increments to the global CXO industry [4]. Recommended Companies - The report recommends the following companies for investment: - WuXi AppTec A (603259 CH) with a buy rating and a target price of RMB 66.31 [4]. - WuXi AppTec H (2359 HK) with a buy rating and a target price of HK 26.12 [4].
医药行业更新报告：影响中国CXO龙头企业估值负面因素消除
华兴证券·2024-12-10 06:14