长江证券指出，2025年以来，伴随着二级市场创新药估值重塑，医药企业A/H上市通道变宽，一级生物 医药投融资退出通道打通，一二级联动或带来中国生物医药投融资生态逐渐走向正循环。2025Q3中国 生物医药投融资金额17.6亿美元，为2022Q4以来新高，2025年11月中国生物医药投融资金额为4.2亿美 元，继续维持在不错水位。中国生物医药投融资或正处于触底回升。 （文章来源：每日经济新闻） 生物医药ETF（512290）跟踪的是CS生医指数（930726），该指数从沪深市场中选取涉及生物科技、制 药、医疗设备等业务的上市公司证券作为指数样本，以反映生物医药相关上市公司证券的整体表现。 CS生医指数聚焦于生物医药行业的创新与发展，成分股多为在研发、生产及销售等方面具有较强竞争 力的企业，全面展现了中国生物医药行业的市场动态和发展趋势。 ...

Group 1 - The core viewpoint is that China's biopharmaceutical investment and financing may be in a stage of bottoming out and recovery, with significant inflows into medical ETFs [1][2] - Medical ETF (159865) saw a net inflow of 25 million units, indicating strong capital interest in medical assets [2] - The State Council's approval of the "Full Chain Support for Innovative Drug Development Implementation Plan" in July 2024 is expected to enhance the investment environment for the biopharmaceutical industry [2] Group 2 - The biopharmaceutical investment amount in China reached $1.76 billion in Q3 2025, marking a new high since Q4 2022, with $590 million in October 2025, indicating a positive trend [2] - The medical ETF (159828) tracks the CSI Medical Index (399989), which includes listed companies in the medical and pharmaceutical retail sectors, reflecting the overall performance of related securities [2] - The index components are skewed towards small and mid-cap stocks, which exhibit higher growth potential and volatility characteristics [2]

Investment Rating - The investment rating for the industry is "Positive" and is maintained [11] Core Insights - The financing ecosystem for China's biopharmaceutical industry is gradually moving towards a positive cycle, driven by the influx of funds from A/H listings and capital increases of innovative drug companies, which is expected to improve the investment sentiment in innovative drug R&D [2][43] - The widening IPO channels for innovative drugs and the substantial fundraising from these listings are expected to enhance R&D investments [6][33] - The increase in the scale of capital increases by listed pharmaceutical companies is further strengthening their cash reserves [7][35] - The biopharmaceutical investment and financing amounts in China are likely at a turning point, showing signs of recovery [8][38] - The upfront payments from external business development (BD) have become a significant new source of funding for R&D, indicating a shift in funding dynamics [9][41] Summary by Sections Innovative Drug IPOs - The IPO channels for innovative drug companies have expanded, with a resurgence in the Hong Kong IPO market and the opening of the Sci-Tech Innovation Board for unprofitable companies, leading to a significant increase in fundraising [6][29][33] Capital Increases - There has been a notable increase in the scale of capital increases among listed pharmaceutical companies, particularly in the Hong Kong market, with the highest quarterly capital increase since 2019 recorded in Q3 2025 [7][35] Investment and Financing Trends - The investment and financing amounts in China's biopharmaceutical sector reached a new high of $1.76 billion in Q3 2025, indicating a potential recovery in the market [8][38] External Business Development Payments - The amount of upfront payments from external BD reached $1.85 billion in Q3 2025, surpassing the investment and financing amounts, highlighting its importance as a funding source for R&D [9][41]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The CDMO (Contract Development and Manufacturing Organization) business is showing improvement, with a positive trend in performance and a recovery in the industry [1][2] - The company reported a revenue of 1.381 billion yuan in Q2 2025, a year-on-year increase of 7.15%, and a net profit attributable to shareholders of 276 million yuan, up 15.70% year-on-year [1] - The company is well-positioned in the global biopharmaceutical supply chain, benefiting from the increasing demand for innovative drugs from China [1][2] Summary by Sections Financial Performance - In H1 2025, the CDMO segment achieved revenue of 2.29 billion yuan, a year-on-year increase of 16.3%, while the API (Active Pharmaceutical Ingredient) segment saw a revenue decline of 28.5% to 520 million yuan [2] - The gross profit margin for H1 2025 was 37.5%, an increase of 2.2 percentage points, and the net profit margin was 18.3%, up 1.1 percentage points [3] - The company’s domestic revenue was 580 million yuan, down 5.83% year-on-year, while overseas revenue was 2.29 billion yuan, up 6.62% year-on-year [3] Project Pipeline and Client Acquisition - The company has a robust project pipeline with 1,214 projects under contract, including 90 Phase III clinical projects and 38 commercial projects [2] - The company has introduced over ten new clients in the formulation CDMO business and has over 100 active formulation projects [2] Capacity Expansion and Strategic Initiatives - The company is advancing its global R&D capabilities and production capacity, with ongoing construction of a GMP production line for peptides expected to be operational by the end of 2025 [3] - The company is enhancing its international strategy to increase customer loyalty globally [3] Profit Forecast - The profit forecast for the company has been adjusted, with expected net profits of 949 million yuan, 1.041 billion yuan, and 1.184 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 56.5%, 9.8%, and 13.7% [3]

Summary of CXO Industry and Company Insights Industry Overview - The CXO sector demonstrated exceptional performance in the first half of 2025, with revenue growth of approximately 15% year-on-year and a scale growth exceeding 60% [1][5] - The CDMO industry benefited from increased capital expenditures and improved capacity utilization, leading to a non-GAAP net profit growth of 26%, significantly outpacing revenue growth [1][5] - The overseas CDMO companies saw a notable improvement in orders in the second and third quarters of the previous year, translating to a revenue growth of around 20% in the first half of this year [6] Key Insights - WuXi AppTec contributed over 40% of the CXO sector's revenue and more than 60% of its profits, serving as a major growth driver [1][5] - The gross profit margin for overseas businesses is significantly higher than domestic counterparts, with an increase in capacity utilization further enhancing profitability [6] - The trend of overseas biopharmaceutical investment and financing is negatively correlated with the Federal Reserve's interest rates, with a 20% increase in quarterly average investment amounts compared to 2021 [7][8] Domestic Market Dynamics - The domestic innovative drug R&D landscape is on an upward trend, with increased funding availability and improved channels for capital sourcing [9] - The resurgence of IPOs in the Hong Kong market reflects an improved capital environment, which is expected to sustain the growth of domestic innovative drug R&D [2][10] - The A-share market's allowance for unprofitable companies to list has significantly expanded the fundraising capabilities of pharmaceutical companies, enhancing their cash reserves [11] Financial Performance - The overall performance of the innovative drug industry chain, including CRO and life sciences services, showed approximately 10% revenue growth in both the first and second quarters of 2025, with profits exceeding revenue growth [3][4] - The CRO companies, such as Kanglong Chemical and Hongbo Pharmaceutical, returned to double-digit revenue growth in the first half of the year [16] - The clinical phase CRO companies experienced a smaller decline in performance compared to the preclinical phase, with improving orders and revenue expected to enhance overall industry performance in the latter half of the year [18] Investment Trends - The second quarter saw external BD upfront payments become a significant and reliable source of R&D funding, exceeding twice the amount of China's biopharmaceutical investment and financing [12] - The biopharmaceutical investment market in China showed signs of recovery, with significant improvements in funding levels observed in July and August [13] - The new BD business model has shifted focus towards early-stage clinical projects, increasing the proportion of early R&D investments compared to previous years [14][15] Conclusion - The CXO sector and innovative drug R&D in China are poised for growth, driven by improved capital conditions, increased funding sources, and a favorable investment environment. The performance of key players like WuXi AppTec highlights the potential for continued success in this dynamic industry [1][9][10]

Core Insights - The Shanghai biopharmaceutical industry is transitioning from "capital frenzy" to "capital rationality" as evidenced by the significant $162 million Series D financing of Jixing Pharmaceutical in 2024, despite a cooling global capital market [1][3][4] - The investment landscape in Shanghai reflects a resilient ecosystem, with high-quality projects still attracting capital, indicating a solid foundation for innovation and development [1][3] Industry Layout - Shanghai's biopharmaceutical industry is no longer limited to Zhangjiang, with the government promoting a "1+5+X" spatial planning strategy that includes a core area and several specialized industrial zones [2][3] - This multi-point distribution and differentiated development model enhances the overall structure of the biopharmaceutical sector in Shanghai [2] Financing Trends - After a peak period from 2019 to 2021, the financing landscape has returned to a more rational state, with a significant decline in the number and total amount of financing events in 2023 and 2024 [3][4] - In 2024, approximately 217 financing events were recorded, totaling around 18 billion yuan, with a notable drop in the number of IPOs and a shift towards early-stage investments [3][4] Sources of Capital - The funding landscape in Shanghai is diverse, with government funds acting as a stabilizing force, while social and industrial capital play a major role in driving investments [4][5] - In 2024, the Shanghai biopharmaceutical sector saw a significant increase in corporate venture capital investments compared to 2023 [4] Investment Focus - Innovation drugs remain the primary focus of investment in Shanghai's biopharmaceutical sector, particularly in areas such as oncology, metabolic diseases, and rare diseases [6] - Emerging fields like medical devices and digital healthcare are also gaining traction, indicating a diverse investment ecosystem [6] Exit Mechanisms - The IPO channel is no longer the sole exit strategy for investors, with mergers and acquisitions becoming increasingly important [7] - In 2025, Shanghai plans to establish a 10 billion yuan biopharmaceutical M&A fund to facilitate exit strategies beyond IPOs [7][9] Policy Support - Policies have been instrumental in shaping the capital ecosystem for Shanghai's biopharmaceutical industry, with recent initiatives aimed at fostering innovation and investment [8][9] - The introduction of various action plans and funding mechanisms is expected to enhance the investment environment and support the growth of the sector [9][10] Challenges and Solutions - The industry faces challenges such as funding structure imbalances, constrained exit channels, and mismatched funding cycles [11][12] - To address these issues, recommendations include establishing early-stage funds, improving exit pathways, and enhancing post-investment management [14]