CRO concept stocks are leading market gains today. As of press time, WUXI APPTEC (02359) rose 6.3% to HK$114.7; WUXI BIO (02269) gained 6.02% to HK$35.2; PHARMARON (03759) climbed 4.11% to HK$21.76; ASYMCHEM (06821) advanced 3.84% to HK$94.75.

Research indicates that 22 listed CXO companies recorded year-over-year growth rates of 14.16%, 64.03%, and 24.82% respectively for revenue, net profit attributable to parent company, and adjusted net profit attributable to parent company in the first half of 2025. For Q2 2025, the corresponding growth rates were 15.15%, 53.58%, and 26.68% respectively. Q2 revenue and profit growth rates continued to improve sequentially.

With strengthening expectations of US dollar rate cuts, rising domestic enthusiasm for innovative drug investment, and increasing numbers of biomedical IPOs on STAR Market and Hong Kong Stock Exchange, the biomedical investment and financing sentiment is recovering. Some CDMO companies have already achieved upward inflection points in performance, and more CRO companies are expected to gradually welcome their turning points, indicating positive sector development trends.

Research suggests that under the national backdrop encouraging innovation, the innovative drug industrial chain has been performing actively recently. While pharmaceutical industry recovery still awaits verification and the sector continues to face pressure from medical insurance cost controls, a multi-layered payment system is being established, and the rigid nature of medical demand will jointly drive industry stabilization and recovery.

Analysts recommend focusing on companies in ADC CDMO and weight-loss drug industrial chain peptide CDMO segments within pharmaceutical outsourcing services, including WUXI APPTEC, Haoyuan Chemexpress, and WUXI BIO.