近期CXO及科研服务板块涨幅明显，东吴证券朱国广团队指出，看好该板块主要原因有三：其一业绩 拐点显著。药明康德、博腾股份、纳微科技等纷纷发布Q2业绩预增，尤其是药明康德明显提速。预期 皓元医药、百普赛斯、奥浦迈等也将有不错的业绩；其二国家全面打响反内卷第一枪。光伏、新能源汽 车等已经全面限产，对CXO板块同等受益，利于板块走出低谷；其三中美关系缓和及美联储降息等。4 月中美贸易战受损最大的CXO等出海，谈判后中美关系有所改善利好CXO等；另外美联储降息预期促 使美元指数连续下跌，降息利于一市场融资改善及并购案的加速。 中泰证券认为，从基本面来看，创新药仍是当前医药板块中产业趋势最为明确且具备未来成长空间的子 行业，全年维度创新药作为医药板块的投资主线不会变化，创新药大时代已然到来，建议积极拥抱，加 配医药板块；此外，7月中报业绩预告/快报陆续披露，CRO&CDMO、GLP-1景气赛道、困境反转的原 料药等表现亮眼，建议继续积极布局有望逐步走出拐点的细分板块，如CRO&CDMO、科研上游、特色 原料药等。 天风医药杨松团队更是直言"买全球最好的中国创新药"！杨松认为，立足当下，中国创新药已经凭借坚 实产业基础， ...

Investment Rating - The report upgrades Tigermed-A to Buy from Sell, with target prices increased to Rmb67/HK$73 from Rmb34/HK$37 [3][10] - WuXi AppTec and WuXi Bio are identified as top picks in the CDMO sector, expected to report beats in 1H25 [10][11] Core Insights - The CXO sector in China's healthcare is gaining attention due to improving fundamentals, attractive valuations, and growth in orders backlog [1] - WuXi AppTec is projected to beat its FY25 guidance, supported by strong growth in orders backlog and strategic disposals [2][11] - Tigermed is expected to benefit from innovative drug development and increasing out-licensing activities, leading to stronger revenue growth [3][10] Summary by Sections Top Picks in CDMO Sector - WuXi AppTec and WuXi Bio are favored for their potential to outperform in 1H25, with Tigermed-A also upgraded due to increased clinical trial activities [10] 1H25 Results Preview - WuXi AppTec's 1H25 results are expected to exceed consensus, driven by strong TIDES business and asset disposals [11] - WuXi Biologics and WuXi XDC are also anticipated to report revenue beats [11] Backlog vs. Revenue Growth - WuXi AppTec's backlog growth accelerated to 47% year-on-year in 1Q25, indicating potential revenue growth acceleration [5][48] - Tigermed's backlog grew 12% year-on-year in 2025, suggesting a positive revenue outlook [34] Global Biotech Funding - Overseas innovative drugs' primary market financing rose 28% year-on-year in 2024, with expectations for recovery in 2H25 [44] Company-Specific Insights - WuXi AppTec's management projects revenue to reach Rmb41.5-43.0 billion in 2025, with a focus on profitability improvements [47] - Tigermed is positioned as a key beneficiary of China's drug innovation, with expected revenue growth driven by clinical trial activities [3][10]

Group 1: Stock Performance - HP closed at $24.83, down 2.32% from the previous trading session, underperforming the S&P 500 which gained 0.14% [1] - Prior to the recent trading day, HP shares had increased by 6.63%, outperforming the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Group 2: Earnings Expectations - HP is expected to report EPS of $0.74, a decrease of 10.84% from the prior-year quarter, with a projected revenue of $13.69 billion, reflecting a 1.26% increase from the same quarter last year [2] - For the entire fiscal year, earnings are predicted to be $3.09 per share and revenue at $54.5 billion, indicating changes of -8.58% and +1.75% respectively from the previous year [3] Group 3: Analyst Estimates and Valuation - Recent changes in analyst estimates for HP suggest a favorable outlook on business health and profitability, with the Zacks Rank system indicating a 3 (Hold) rating for HP [4][5] - HP's Forward P/E ratio is 8.24, which is lower than the industry average of 11.92, indicating a potential valuation discount [6] - HP has a PEG ratio of 2.06, compared to the industry average PEG ratio of 1.56, suggesting a higher anticipated earnings growth rate relative to its peers [7] Group 4: Industry Context - The Computer - Micro Computers industry, to which HP belongs, has a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Company Performance - Apple (AAPL) stock decreased by 1.2% to $208.62, underperforming the S&P 500 which gained 0.14% [1] - Over the past month, Apple shares appreciated by 7.49%, outperforming the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Upcoming Earnings - Apple's earnings report is expected on July 31, 2025, with projected earnings of $1.42 per share, indicating year-over-year growth of 1.43% [2] - Revenue is anticipated to be $88.53 billion, reflecting a 3.21% increase from the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $7.1 per share and revenue at $404.05 billion, representing changes of +5.19% and +3.33% respectively from the prior year [3] Analyst Estimates - Recent adjustments to analyst estimates for Apple reflect shifting short-term business dynamics, with upward revisions indicating analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [5] Valuation Metrics - Apple's Forward P/E ratio stands at 29.74, significantly higher than the industry average Forward P/E of 11.92 [7] - The PEG ratio for Apple is currently 2.36, compared to the Computer - Micro Computers industry's average PEG ratio of 1.56 [7] Industry Ranking - The Computer - Micro Computers industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 92, placing it in the top 38% of all industries [8]

Investment Rating - The report maintains a "Buy" rating for Asymchem, Kangji Medical, Weigao, Angelalign, and Hygeia, while Tigermed, WuXi XDC, WuXi Biologics, and Frontage are rated as "Neutral" [11][15][18][27][36]. Core Insights - The report highlights a recovery in the healthcare sector, particularly in the CDMO segment, with expectations for earnings resilience driven by new order growth and demand from both US and EU markets, as well as from Chinese biotech licensing [2][3]. - The Medtech sector is anticipated to see clearer recovery in the second half of 2025, supported by normalized hospital activity and new product contributions [3]. - The report emphasizes the importance of monitoring pricing competition and consumption recovery signals in the services sector, particularly in consumer-related categories [4]. Summary by Sections CRO/CDMO - Earnings are expected to remain resilient, especially for companies with exposure to late-stage development and manufacturing projects [2]. - Key investor focus areas include new order growth, client behavior shifts amid policy uncertainties, and pricing and margin recovery [2][13]. - EPS estimates have been revised upward by an average of 1.3% to 1.4% for 2025-2027, with target prices adjusted by an average of 4% [1]. Medtech - Recovery is expected to materialize more clearly in the second half of 2025, with key areas to watch including the pace of VBP rollout and surgical volume trends [3]. - Companies like Weigao and Kangji are ramping up new product launches and global expansions, despite some tariff-related uncertainties [3]. Services - Reimbursement control and DRG/DIP pressure are likely to persist, impacting pricing and volumes [4]. - The report notes a cautious outlook for M&A activity, with companies like Hygeia becoming more positive while others remain cautious [9]. Financial Estimates - The report provides detailed financial estimates for various companies, indicating expected sales growth and net income projections for FY25 and beyond [14][19]. - For instance, WuXi Apptec is projected to achieve a revenue growth of 10-15% for FY25, while Asymchem anticipates double-digit revenue growth alongside margin improvements [19]. Target Price Changes - Target prices for several companies have been adjusted, with Asymchem's target price increased to HK$85.5, reflecting a 13% change [11][15]. - WuXi Biologics' target price is set at HK$25.6, based on a 12-month forward P/E of 22x [15][31]. Backlog and Order Trajectory - The report includes a detailed analysis of backlog and new order trajectories for key players in the CRO/CDMO space, indicating significant year-on-year growth in sales and backlog for companies like WuXi Apptec and WuXi Biologics [17].

Group 1: Guolian Minsheng Securities Performance - Guolian Minsheng Securities achieved a net profit of 1.129 billion yuan in the first half of 2025, representing a year-on-year increase of approximately 1183% [1] - Even after excluding the merger impact, the company's performance still showed a year-on-year growth of 168%, indicating strong synergy effects post-merger [1] - The investment banking business, particularly in IPO projects, has been a significant growth driver for Guolian Minsheng Securities, ranking high in the number of sponsorships [1] - The strategic focus is on industrial investment banking, technology investment banking, and wealth management, aiming for leapfrog development through a comprehensive business model [1] - The integration path of Guolian Minsheng Securities lays a foundation for enhancing competitiveness in the international investment banking arena [1] Group 2: Rare Earth Market Dynamics - On July 10, 2025, Northern Rare Earth and Baotou Steel announced a price increase for rare earth concentrates, leading to a strong rebound in the rare earth permanent magnet sector with a net capital inflow of 3.536 billion yuan and a price increase of 5.15% [2] - The price increase reflects a fundamental change in the supply-demand structure, indicating a restructuring of the rare earth permanent magnet industry chain [2] - Continuous rectification of black rare earth mines has led to the closure of over 30% of illegal mining operations in major production areas, resulting in a compliance production capacity ratio of 82% [2] - Despite a slight increase of 5% in rare earth mining quotas for 2025, 80% of the quotas are concentrated in leading companies, diminishing the bargaining power of smaller enterprises [2] - The domestic electric vehicle penetration rate is expected to exceed 45% in 2025, with annual demand for rare earth magnetic materials projected to reach 150,000 tons, nearly five times the demand in 2020 [2] - The price surge is driven by a combination of replenishment demand and new demand following a significant inventory reduction in 2024 [2] - Upstream companies are expected to see profit surges, while midstream magnetic material companies face significant cost pressures [3] Group 3: Pharmaceutical Sector Performance - On July 11, 2025, innovative drug concept stocks performed well, with major stocks like Kelaiying and WuXi AppTec hitting the limit up [3] - As of July 10, 2025, WuXi AppTec's financing balance reached 3.333 billion yuan, marking a new high in nearly two weeks, with a net buying amount of 179 million yuan over the past five days [3] - 92.3% of companies that have disclosed mid-year profit forecasts expect net profit growth or turnaround, with several companies projected to exceed 100% net profit growth [3] - The medical sector indices are at relatively low valuation points, suggesting potential investment value in the sector [3] Group 4: Stablecoin Market Developments - On July 11, 2025, the stablecoin concept stocks saw a strong rebound, with Guotai Junan International's stock price rising over 10% and its market value exceeding 60 billion HKD [4] - Guotai Junan International's mid-year profit forecast indicates a projected net profit of 515 million to 595 million HKD for the first half of 2024, representing a year-on-year growth of 161% to 202% [4] - The Shanghai State-owned Assets Supervision and Administration Commission is increasing its focus on the future development trends and strategies for cryptocurrencies and stablecoins [4] - The new stablecoin regulations in Hong Kong, effective August 1, 2025, provide a clear regulatory framework, stimulating market enthusiasm for stablecoin concepts [4] Group 5: Coking Coal Market Trends - The Central Financial Committee emphasized the need to accelerate the exit of backward production capacity, raising expectations for supply-side reforms in the coal industry [5] - The closure of ports during Mongolia's Nadam Festival has intensified market expectations for coal supply tightness, contributing to a bullish sentiment in the coking coal market [5] - Despite being in a traditional demand off-season, steel mills' production demand has not declined as sharply as expected, leading to a recovery in profit margins [5] - Strong performance in coking coal prices supports coking coal prices, while production cuts and environmental inspections alleviate supply pressures [5]

Core Viewpoint - The CRO (Contract Research Organization) sector is experiencing a significant upward trend, driven by the strong performance forecast of WuXi AppTec, which is expected to see substantial revenue and profit growth in the first half of 2025 [1][3]. Financial Performance - WuXi AppTec anticipates revenue of approximately RMB 20.8 billion for the first half of 2025, representing a year-on-year increase of about 20.6% [3]. - The company expects a net profit attributable to shareholders of around RMB 8.56 billion, reflecting a year-on-year growth of approximately 101.9%, which includes investment income from the sale of equity in an associate [3]. - The adjusted Non-IFRS net profit is projected to be about RMB 6.31 billion, up 44.4% year-on-year, while the net profit excluding non-recurring items is expected to be around RMB 5.58 billion, a 26.5% increase [3]. Business Segments - The chemical business remains the primary revenue source for WuXi AppTec, accounting for over 70% of total revenue in recent years [4]. - The company has successfully supported the approval of multiple new drugs by the FDA and other regulatory bodies, indicating strong performance in its chemical business [4]. - The GLP-1 (glucagon-like peptide-1) drug development area is highlighted as a significant growth opportunity, with the number of clinical candidates increasing substantially [5]. Industry Trends - The Chinese pharmaceutical industry is transitioning from generic drug production to innovative drug development, which is driving demand for CRO services [2][6]. - The total licensing-out transaction amount for innovative drug companies reached USD 45.5 billion in the first five months of the year, nearing the total for the previous year [6]. - The regulatory environment is supportive of innovative drug development, with new measures introduced to enhance the quality of innovation in the pharmaceutical sector [6]. Strategic Moves - WuXi AppTec is optimizing its CGT (cell and gene therapy) business by divesting certain assets to mitigate potential risks associated with regulatory changes [7]. - The global cell and gene therapy market is projected to grow significantly, indicating a favorable environment for WuXi AppTec's strategic focus in this area [7]. Market Dynamics - The CRO sector is expected to benefit from a rebound in investment and financing within the healthcare sector, with a notable increase in financing events and amounts [8]. - However, the industry faces intense competition, with the number of qualified clinical trial institutions in China increasing significantly, leading to price pressures [8]. - Despite challenges, the demand for medical outsourcing services is recovering, and companies with global service capabilities are well-positioned to capitalize on this trend [8].

Market Overview - The market experienced a high and then a pullback, with the three major indices showing slight increases. The total trading volume in the Shanghai and Shenzhen markets reached 1.71 trillion, an increase of 218 billion compared to the previous trading day, marking the highest trading volume since March 15 [1] - The market showed a mixed performance with over 2900 stocks rising, indicating a broad-based upward movement [2] Sector Performance - The rare earth permanent magnet sector saw a collective surge, with over 10 stocks, including Northern Rare Earth, hitting the daily limit [3] - Brokerage and internet finance stocks initially surged, with Zhinan Zhen reaching a historical high. The CRO sector also performed actively, with WuXi AppTec hitting the daily limit [3] - On the downside, bank stocks experienced a continuous decline in the afternoon, with over 20 stocks dropping more than 2%. The sectors with the highest gains included rare earth permanent magnets, securities, internet finance, and non-ferrous metals, while banks, PCB, gaming, and paper-making sectors faced the largest declines [4] Institutional Activity - Institutional participation increased compared to the previous day, with 24 stocks having a net buy/sell amount exceeding 10 million. There were 15 net purchases and 9 net sales, with notable net purchases in Guorui Technology (65.21 million), Zhongke Jincai (52.26 million), and Zhongdali De (50.46 million). Conversely, there were significant net sales in Huaguang Huaneng (80.97 million), China Rare Earth (45.24 million), and Huanrui Century (34.65 million) [5]

Market Overview - The Hong Kong stock market showed a volatile upward trend in the morning, with the Hang Seng Index and the Hang Seng China Enterprises Index both rising over 1% at one point. By the close, the Hang Seng Index increased by 0.46% to 24139.57 points, with a total trading volume of 3239.5 billion HKD. For the week, the Hang Seng Index rose by 0.93% [1] - The current dollar index is under pressure due to crowded short positions and cooling interest rate cut expectations, which poses risks to the Hong Kong market. The fundamentals and sentiment indicators for Hong Kong stocks are weakening, with increased competition in the food delivery sector and a weakening AI narrative affecting the Hang Seng Technology Index [1] Blue Chip Performance - WuXi AppTec (02359) led the blue-chip stocks, closing up 10.46% at 88.15 HKD, contributing 4.53 points to the Hang Seng Index. The company issued a profit warning, expecting a revenue of approximately 20.799 billion RMB for the first half of 2025, a year-on-year increase of about 20.64%, and a net profit of 8.561 billion RMB, a year-on-year increase of about 101.92% [2][5] - Other blue-chip stocks included WuXi Biologics (02269) up 3.7%, Hong Kong Exchanges and Clearing (00388) up 2.95%, while China Merchants Bank (03968) and China Resources Mixc Lifestyle (01209) saw declines [2] Sector Highlights - Large technology stocks mostly rose, with Alibaba up 1.84% and Meituan up 1.18%. The biopharmaceutical sector saw significant gains, particularly in the CRO segment, with multiple stocks rising over 10% following WuXi AppTec's positive earnings forecast [3] - Brokerage stocks experienced a collective surge, with South China Financial (00619) up 100.89%, and Zhongzhou Securities (01375) up 47.47%, driven by expectations of virtual asset licenses [3][4] Cryptocurrency and Regulatory Developments - The Hong Kong Special Administrative Region's "Stablecoin Regulation" will take effect on August 1, 2025, allowing certain brokerages to provide virtual asset trading services to professional investors. This has generated significant market interest and may enhance the pricing attractiveness of the securities sector [4] - Bitcoin prices surged over 6%, reaching a new high of 117,919 USD, with other cryptocurrencies also rising. The U.S. House of Representatives has designated the week of July 14 as "Cryptocurrency Week" to discuss new regulatory frameworks [6] Steel and Semiconductor Sectors - The steel sector saw early gains, with Chongqing Steel (01053) up 4.08% and Maanshan Steel (00323) up 3.74%. Analysts suggest that ongoing "anti-involution" policies may improve the supply-demand dynamics in the steel industry [7] - Semiconductor stocks were active, with Hua Hong Semiconductor (01347) up 4.12% and SMIC (00981) up 2.22%. TSMC reported a revenue of 263.71 billion NTD for June, a decrease of 17.7% month-on-month but a 26.9% increase year-on-year [8] Notable Stock Movements - Xirui (02507) reached a new high, closing up 14.01% at 48 HKD, driven by developments in the general aviation sector [9] - NIO-SW (09866) rose 5.98% to 29.25 HKD following the announcement of its new product launch [11] - Gold stocks, particularly Laopu Gold (06181), faced significant declines, dropping 11.42% after a recent high [13][14]

Market Overview - The market experienced a high and then a pullback, with the three major indices showing slight increases. The trading volume reached 1.74 trillion, an increase of over 220 billion compared to the previous day [1] - The rare earth magnetic materials sector saw significant gains, with multiple stocks hitting the daily limit, including Northern Rare Earth and Baogang Co. [1][4] - Broker stocks collectively strengthened, with Zhongyin Securities and Zhongyuan Securities also hitting the limit [1] - Stablecoin concepts remained active, with stocks like Guoao Technology and Jinzhen Co. reaching the daily limit [1] - CRO concept stocks performed well, with WuXi AppTec hitting the limit [1] Key Highlights Rare Earth Magnetic Materials - The rare earth magnetic materials sector surged, with stocks like Jingyuntong and Northern Rare Earth achieving consecutive limit-ups. Baogang Co. and Huayang New Materials also saw limit-ups [4] - On July 10, Northern Rare Earth and Baogang Co. announced an adjustment in the third-quarter rare earth concentrate related transaction price to 19,109 yuan/ton, a 1.5% increase from the second quarter's 18,825 yuan/ton [4] - Northern Rare Earth released a performance forecast, expecting a net profit attributable to shareholders of 900 million to 960 million yuan for the first half of 2025, representing a year-on-year increase of 1,882.54% to 2,014.71% [4] RWA (Real World Assets) - The RWA concept was active again, with Huamei Holdings achieving four consecutive limit-ups and Greenland Holdings hitting two consecutive limit-ups [6] - The Shanghai State-owned Assets Supervision and Administration Commission held a study session on the development trends and response strategies for cryptocurrencies and stablecoins [6][8] - RWA on-chain asset scale grew from less than 200 million USD in 2020 to over 23 billion USD, with predictions that it will exceed 2 trillion USD by 2030 [8] Financial Sector - The financial sector showed strong performance, with Nanhua Futures achieving three consecutive limit-ups and Zhongyin Securities hitting two consecutive limit-ups [9] - Recent trading volumes in A-shares have consistently surpassed 1 trillion [9] - The sustainability of the brokerage sector's performance depends on the pace of policy benefits and market activity levels [10][11] Other Active Sectors - Other active sectors included innovative drugs, real estate, and robotics, while new urbanization and electricity sectors faced declines [12]