WuXi AppTec(SH:603259) Xiangcai Securities·2025-12-21 14:33Investment Rating - The report maintains a "Buy" rating for the medical services industry [6][9] Core Insights - The medical services sector has shown resilience, with a slight increase in valuation despite overall market corrections, highlighting its value proposition [6][9] - The recent passage of the U.S. 2026 National Defense Authorization Act (NDAA) is expected to ease the immediate impact on the domestic biopharmaceutical industry, particularly for companies like WuXi AppTec and WuXi Biologics [5][61] Summary by Sections Industry Performance - The pharmaceutical and biological sector declined by 0.14%, ranking 22nd among 31 primary industries [1][11] - The medical services sub-sector index closed at 6344.37 points, up by 0.55% [22][23] Company Performance - Top-performing companies in the medical services sector include: - Meinian Health (+24.1%) - Baihua Pharmaceutical (+8.8%) - Dian Diagnostics (+8.1%) [2][27] - Underperforming companies include: - Nanhua Biological (-6.5%) - Medisyn (-5.2%) [2][27] Valuation Metrics - The current Price-to-Earnings (PE) ratio for the medical services sector is 32.03X, with a Price-to-Book (PB) ratio of 3.23X [3][29] - The PE ratio has increased by 0.29X from the previous week, while the PB ratio has risen by 0.03X [29] Investment Recommendations - The report suggests focusing on high-growth areas such as ADC CDMO and the peptide CDMO in the weight-loss drug supply chain, with specific companies like WuXi AppTec and Haoyuan Pharmaceutical highlighted [9][62] - It also recommends monitoring third-party testing laboratories and consumer healthcare sectors, particularly in ophthalmology and dentistry, with companies like Aier Eye Hospital and Dian Diagnostics [9][62]