Investment Rating - The industry rating is "Outperform the Market" [7] Core Insights - The report highlights a strong recovery in investment and financing activities in the CXO sector, with significant growth in both primary and secondary markets for biotech [4][18][23] - The JPM conference indicated a positive outlook for 2026, with companies expressing optimism about demand recovery and operational efficiency improvements [4][28] - The report emphasizes the importance of technological innovation in the pharmaceutical sector for 2026, focusing on innovative drugs and medical devices [5][32] Summary by Sections Investment Opportunities and Trends - Primary market financing for overseas biotech reached $8.72 billion in Q4 2025, showing a year-on-year decrease of 2.4% but a quarter-on-quarter increase of 21% [4][18] - In January 2026, primary market financing totaled $3.34 billion, indicating a strong recovery [4][18] - Secondary market financing for overseas biotech in Q4 2025 was $19.28 billion, a year-on-year increase of 111% and a quarter-on-quarter increase of 149.5% [4][23] - The report notes that companies like WuXi AppTec and Danaher exceeded performance expectations, with a general recovery in demand for Pharma and Biotech orders [4][28] Market Performance Review - The CITIC Pharmaceutical Index fell by 0.72% from January 12 to January 16, 2026, underperforming the CSI 300 Index by 0.2 percentage points [3][32] - The pharmaceutical sector has seen a 6.9% increase since the beginning of 2026, outperforming the CSI 300 Index by 4.7 percentage points [3][32] - The top-performing stocks during this period included Baolai Te (+48.8%), Hualan Biological Engineering (+32.7%), and Tianzhihang (+27.7%) [3][47] Company Performance and Recommendations - The report suggests focusing on companies such as WuXi AppTec, Beigene, and others for potential investment opportunities in 2026 [5][54] - The report outlines a strategy for innovative drugs, emphasizing revenue realization, unexpected business development, and cutting-edge technology platforms [5][32] - The medical device sector is highlighted for its potential in equipment replenishment and innovative consumables benefiting from centralized procurement [5][32]

Core Viewpoint - The Hong Kong stock market continues to adjust, with the pharmaceutical sector declining alongside the market, particularly affected by a short-term cooling of AI medical concepts [1][12]. Group 1: Market Performance - The Hong Kong Medical ETF Huabao (159137) fell by 0.93%, marking two consecutive days of decline, while the Hong Kong Innovation Drug ETF (520880) dropped by 1.08% [1][12]. - The medical sector saw 13 stocks rise and 37 fall, with Ark Health, a hot stock in AI medical concepts, leading the decline at 6.98%, and Alibaba Health also falling by 5.16% [2][13]. - The Hong Kong Medical Theme Index achieved a record nine consecutive days of gains before experiencing a pullback, with the Medical ETF Huabao having a cumulative increase of 6.9% in its first week, outperforming the Hang Seng Index [3][14]. Group 2: Sector Analysis - The Hong Kong Medical ETF Huabao covers 50 leading stocks across various medical fields, including CXO, AI medical, medical devices, and innovative drugs, indicating a comprehensive approach to capturing market trends [5][16]. - The medical sector has shown significant recovery since 2026, driven by hot themes like brain-computer interfaces and AI medical, with increasing investment value [6][17]. - The CXO sector is expected to see a "Davis Double Play" with both profit and valuation improvements, as demand gradually recovers and supply has been cleared over the past three years [18]. Group 3: Future Outlook - Analysts predict that by 2026, key areas of growth will include innovative overseas expansion and hard technology sectors such as AI medical and brain-computer interfaces, with a focus on monitoring the expansion of medical insurance and essential drug directories [18]. - The Medical ETF Huabao is positioned as a high-elasticity tool for capturing new opportunities in the medical field, particularly in AI medical, brain-computer interfaces, and innovative drug supply chains [18]. - The total scale of the medical ETF fund reached 27 billion yuan, making it the largest in the market for medical-related ETFs [19].

证券研究报告 港股通 药明合联 (2268 HK) 2025 营收快速攀升，收购东曜强化龙 头优势 2026 年 1 月 16 日│中国香港 生物医药 1 月 14 日，公司发布了 2025 年度业绩预告，收入、毛利润、净利润和经调 整净利润（剔除利息及汇兑影响）分别同比增长超过 45/70/38/65%，收入 增长强势且毛利率维持高位。同日，公司公告拟以约 30.9 亿港币收购东曜 药业，有望快速补充产能并助力补充订单。考虑到全球 ADC 管线商业化逐 步来临且对 CRDMO 需求较高，结合药明合联订单获取的强劲态势与产能 的有序扩张，我们持续看好公司业绩高速增长。维持"买入"。 2025 年营收增长强势，毛利率维持高位 我们预计 2025 年收入/毛利/净利润分别约 59.6/21.1/14.7 亿：1）营收继续 保持强势，其中 2H25 收入约 32.6 亿（yoy≈37%），我们预计受益 DP3 落地后的产能利用爬坡；2）全年毛利率约 35.4%，较 2024 年提升约 5pct， 在新产能上线、现有产能扩大 DP 产能建设的背景下显示了强大经营效率； 3）因汇兑影响和费用率提升，2H25 利润率较上 ...

Core Viewpoint - The CXO sector is experiencing growth driven by new molecular developments, improved market sentiment, and the increasing demand for innovative drug research in the domestic market, alongside advancements in AI-enabled drug development [1] Group 1: Market Trends - In the first half of 2024, the CXO sector continued to decline due to the impact of the U.S. Biosecurity Act and adjustments in corporate earnings growth expectations [2] - By September 2024, a policy-driven bull market emerged in the domestic stock market, leading to a simultaneous rise in CXO stock prices as geopolitical risks temporarily eased [2] - In March 2025, some leading CXO companies reported better-than-expected order data, injecting valuation into the secondary market [2] Group 2: Macroeconomic Environment - The Federal Reserve's interest rate cut cycle is expected to improve the financing environment for the pharmaceutical and biotechnology sectors, benefiting outsourcing service demand from pharmaceutical companies [3] - Geopolitical uncertainties are gradually being released, with the U.S. Fiscal Year 2026 National Defense Authorization Act already enacted, and updates to the SEC 1260H list expected to further reduce risks for leading CXO companies [3] Group 3: Industry Dynamics - Domestic demand is accelerating recovery, with the number of new drug IND applications in China steadily increasing in 2025, reaching 395, 410, 526, and 509 for Q1, Q2, Q3, and Q4 respectively [4] - The total investment in China's healthcare sector in 2025 is projected to be 93.54 billion yuan, a year-on-year increase of 83.7%, with 626 investment events recorded, up 26.7% year-on-year [4] - Globally, the healthcare sector's investment in 2025 is expected to total 591.19 billion yuan, a year-on-year decrease of 20.9%, but the decline is expected to narrow over the quarters [4]

Summary of the Conference Call on the Innovative Drug Industry Chain Industry Overview - The innovative drug industry is expected to show signs of recovery in 2024 and 2025, with a significant increase in BD transaction amounts indicating a rebound in market activity [1][3] - The growth investment opportunities are primarily driven by the launch and commercialization of blockbuster drugs, leading to increased CDMO outsourcing orders, particularly in the expanding markets for peptide drugs (e.g., teriparatide) and GLP-1 weight loss medications [1][3] Key Companies and Growth Opportunities - **WuXi AppTec** is highlighted as a beneficiary due to its ample production capacity, particularly in the peptide sector [1][4] - **Zhaoyan New Drug** is noted for its improving profitability margins, driven by the rebound in the price of experimental monkeys [1][3] - **Tigermed** is expected to see improvements in profitability due to better order structures, which will manifest in 2026 [1][3] - **Boteng Co.** is set to improve its gross margin and capacity utilization due to the recovery of core orders from major clients [2][4] Market Trends and Projections - The peptide and ADC (antibody-drug conjugate) markets are identified as two critical growth segments, with the ADC market projected to maintain a compound annual growth rate (CAGR) of over 30% in the coming years [1][4] - The sales growth of teriparatide has exceeded expectations, positively impacting the performance of related CDMO companies [1][4] Investment Cycle Insights - The innovative drug industry is currently in a new upward cycle, with historical investment cycles averaging 3-4 years. The low point of the current cycle was in 2022, with a gradual recovery expected in 2024 and 2025 [3][4] - The total BD transaction amount in 2025 is anticipated to significantly exceed that of 2024, reflecting a warming market sentiment [3][4] Additional Considerations - The clinical CRO sector, represented by Zhaoyan New Drug, is showing signs of marginal improvement due to price rebounds, while Tigermed's order structure improvements are expected to enhance profitability [1][3][4] - The focus on companies with strong production capacity and stable supply capabilities is crucial for capitalizing on the upcoming growth in the innovative drug sector [1][4]

Investment Rating - The report maintains a positive outlook on the CXO sector, highlighting growth potential driven by new molecular developments and recovery in domestic market conditions [2]. Core Insights - The CXO sector is experiencing a recovery in demand due to increased research activities and funding from downstream pharmaceutical companies [3][15]. - The macroeconomic environment is improving, with a favorable investment climate for the pharmaceutical and biotechnology sectors as a result of the Federal Reserve's interest rate cuts [6][29]. - Domestic healthcare investment is showing significant growth, with a total investment amount of 93.54 billion yuan in 2025, reflecting an 83.7% year-on-year increase [22][24]. - The number of new drug IND applications in China is steadily increasing, indicating a robust pipeline for future drug development [34][37]. Summary by Sections Macroeconomic Dimension - The Federal Reserve's interest rate cuts are expected to enhance the investment environment for the pharmaceutical sector, benefiting outsourcing demand from pharmaceutical companies [6][29]. - Geopolitical uncertainties are gradually being alleviated, which is expected to positively impact leading CXO companies [3][12]. Industry Dimension - The demand for CXO services is closely linked to the research activities and funding of pharmaceutical companies, with a notable increase in domestic and global investment in healthcare [15][19]. - In 2025, the total investment in China's healthcare sector reached 93.54 billion yuan, with a significant increase in the number of investment events [22][24]. - The number of new drug IND applications in China reached 1,840 in 2025, marking a 15.0% year-on-year increase [34][37]. Company Performance - The CXO sector's revenue for the first three quarters of 2025 was 69.57 billion yuan, representing a 13.0% increase year-on-year, with a net profit of 16.54 billion yuan, up 60.0% [51][57]. - Major contributors to revenue include WuXi AppTec (47%), Kanglong Chemical (15%), and Tigermed (7%) [53][57]. - The overall gross margin for the sector improved to 40.3%, reflecting operational efficiencies and scale effects [51][58].

Group 1 - The core point of the news is the significant acquisition activity in the domestic CXO industry, specifically the voluntary conditional cash offer by WuXi AppTec's subsidiary, WuXi Biologics, to acquire all issued shares of Easton Biopharma at a premium of approximately 99% over its undisturbed closing price [1] - The offer price is set at 4 HKD per share, with a maximum total consideration of about 3.1 billion HKD if fully accepted [1] - Following the announcement, Easton Biopharma's stock surged over 78%, while WuXi Biologics' stock fell by more than 4.8% [1] Group 2 - WuXi Biologics is a leading player in the domestic CXO sector, holding a 50.82% stake in WuXi Biologics [1] - WuXi Biologics reported a financial performance forecast for 2025, expecting revenue growth of over 45%, gross profit growth exceeding 70%, and adjusted net profit growth of over 45%, with a projected growth rate exceeding 65% after excluding currency fluctuations [2] - The company plans to invest over 7 billion CNY from 2026 to 2029 to expand its ADC production capacity, significantly outpacing the industry average [2] Group 3 - Easton Biopharma, established in 2010 and listed in 2019, transitioned to the CXO sector in 2020, focusing on biopharmaceutical CDMO services [3] - In the first half of 2025, Easton Biopharma reported revenues of 489 million CNY and a net profit of 4.06 million CNY, with a total of 85 clients served [3] - The company has a flexible production capacity with multiple commercial production lines, including 30,000 liters annual capacity for antibody bulk and 530,000 bottles for ADC formulations [3] Group 4 - On the same day, Aopumai announced the completion of a share transfer with Pengli Biotech, marking the latter as a wholly-owned subsidiary for a transaction price of 1.45 billion CNY [4] - Aopumai, founded in 2013, specializes in cell culture solutions and end-to-end CDMO services, having been listed on the STAR Market in 2022 [4] - Pengli Biotech, established in 2008, is one of the earliest CRO companies focused on preclinical pharmacodynamic research in China [5]

2025年，恒生医疗保健指数在创新药牛市带动下，最终实现了指数年内上涨56.95%的优秀表现。然而，在这段由创新药标的波动带动的行情中，CXO标的 的表现同样出众。 以港股头部CXO标的药明生物(02269)为例，2025年，公司股价年内涨幅达到79.04%，显著跑赢指数。而时至2026年，港股生物医药板块再度走出强势行 情，药明生物则以一段"六连阳"的拉升行情领涨CXO赛道，并于1月14日收盘站上40港元/股关口，今年区间内最高涨幅超过28%。这一方面反映出市场对创 新药产业链及其上游交付确定性的再定价，另一方面也反映出资金对CXO龙头企业配置意愿的持续性。 智通财经了解到，去年8月，药明生物在中期业绩交出硬核成绩单，并上调2025年全年收入指引至14%-16%，宣布回归高增长通道。在强劲的内生增长潜力 持续修复公司估值、推高公司股价的背景下，药明生物在二级市场的表现值得更多期待。1月11日晚间，药明生物以一则重磅公告鸣响公司2026年加速估值 修复的第一声信号枪。 重磅数据背后的加速成长轨迹 从业务结构看，从研发(R)到开发(D)再到生产(M)的加速转化成为公司高速增长的关键驱动力。 智通财经了解到，药明 ...

Core Insights - The Chinese innovative drug industry is entering a new prosperous era characterized by significant BD transactions and a focus on source innovation [1][10] - This revival not only leads to valuation recovery for innovative drug companies but also reshapes the entire innovative drug industry chain [1][10] - The CXO industry and internet distribution platforms are expected to benefit from this growth cycle, emerging as "invisible winners" in the innovative drug boom [1][10] CXO Industry - WuXi AppTec, as a leader in the CXO industry, possesses a unique logic of beta and alpha resonance during this innovative drug prosperity cycle [2][11] - WuXi AppTec is projected to achieve approximately 45.456 billion yuan in revenue for 2025, a year-on-year increase of about 15.84%, with adjusted net profit expected to reach approximately 14.957 billion yuan, up 41.33% [3][12] - The company's growth is attributed to its integrated CRDMO (Contract Research, Development, and Manufacturing) business model, which significantly reduces R&D costs and complexity [3][12] Innovative Drug Commercialization - The number and quality of innovative drugs approved in China are experiencing explosive growth, with 76 innovative drugs approved in 2025, a 58.3% increase from 48 in 2024 [5][15] - New commercial channels, particularly internet platforms like JD Health and Alibaba Health, are emerging as core strategic channels for innovative drug commercialization [5][15] - JD Health has established itself as the "first station for new specialty drugs," allowing innovative drugs to be launched online immediately after approval, enhancing accessibility for patients [5][15][16] Investment Opportunities - The industry’s growth is expanding from solely innovative drug R&D companies to the entire supply chain, creating significant investment opportunities [17] - Index theme funds are suggested as a means for ordinary investors to access the overall sector, with the Hong Kong Stock Connect Medical ETF (159137) covering about 70% of the core assets in the innovative drug supply chain [17][19] - The ETF includes leading companies in the medical AI sector and high-end medical devices, effectively covering industry hotspots [18][19]

Group 1 - The core viewpoint of the article is that the Hong Kong innovative drug sector has seen a significant recovery in liquidity since the beginning of 2026, leading to a positive market outlook [1] - The report highlights that the upcoming JPM Healthcare Conference is expected to further boost the Chinese biopharmaceutical (BD) transactions, which have already shown substantial growth compared to the same period last year [1] - Huatai Securities anticipates that the liquidity recovery at the start of the year will trigger a clear beta rally in innovative drugs, with expectations of breaking previous highs [1] Group 2 - The external demand-driven Contract Research Organization (CXO) sector is expected to continue exceeding performance expectations due to the demand for new molecules, potentially resonating with the innovative drug sector [1]