Investment Rating - The industry is rated as "Outperforming the Market" with an expected relative increase of over 10% in the next six months compared to the market index [4][32]. Core Insights - In the first half of 2025, the pharmaceutical research outsourcing industry showed robust revenue growth of 13.77% year-on-year and a significant profit increase of 63.82% [2][22]. - The recovery in global financing has led to a resurgence in demand for early-stage drug discovery, shortening the order conversion cycle for CRO (Contract Research Organization) services, which has driven performance [3][30]. - The demand for production outsourcing has been boosted by innovative drugs entering late-stage clinical trials and commercialization, contributing to the growth of CDMO (Contract Development and Manufacturing Organization) services [3][30]. - High-value-added services, such as peptide production, have generated additional revenue streams [2][22]. Summary by Sections 1. Pharmaceutical Sector Performance Review - From January to August 31, 2025, the pharmaceutical sector achieved a 25.50% increase, outperforming the CSI 300 index by 11.22 percentage points, ranking 9th among 31 sectors [9][11]. - The medical research outsourcing sub-sector led the performance with a remarkable increase of 62.37% [13][14]. 2. Pharmaceutical Sector Earnings Review - In the first half of 2025, only the medical services sector among six secondary sub-sectors showed positive growth, while the biopharmaceutical sector experienced the largest decline [18]. - The medical research outsourcing and other biopharmaceutical sub-sectors achieved high profit growth rates of 63.82% and 51.47%, respectively [19]. 3. Medical Services Outsourcing Sector Performance - The medical research outsourcing sector's overall revenue increased by 13.77% year-on-year, with net profit rising by 63.82% in the first half of 2025 [22][27]. - The sector's gross margin improved from 37.95% in 2024 to 39.77% in the first half of 2025, while net margin rose from 14.73% to 24.36% [25]. 4. Investment Recommendations - The report suggests focusing on leading companies benefiting from the increasing industry concentration and those engaged in high-value-added businesses like CDMO and peptides [3][30].