CRO concept stocks led the gains in the Hong Kong market. At the time of writing, WUXI APPTEC (02359) was up 8.48% at HKD 120.2; ASYMCHEM (06821) rose 7.4% to HKD 91.4; PHARMARON (03759) increased 7.13% to HKD 24.64; TIGERMED (03347) climbed 7.16% to HKD 53; and WUXI BIO (02269) advanced 5% to HKD 39.46.

On the news front, WUXI APPTEC announced on the evening of January 12 that it is projected to achieve annual revenue of RMB 45.456 billion, a year-on-year increase of 15.84%; revenue from continuing operations specifically grew by approximately 21.40%.

The company expects adjusted net profit attributable to shareholders of RMB 14.957 billion, up about 41.33% year-on-year, while net profit attributable to shareholders reached RMB 19.151 billion, surging approximately 102.65%.

Notably, this marks the second time within a year that WUXI APPTEC has raised its full-year performance guidance, having previously upgraded its forecast when releasing its Q3 2025 results: overall expected revenue was raised from RMB 42.5-43.5 billion to RMB 43.5-44 billion, and the growth rate for continuing operations revenue was adjusted upward from 13%-17% to 17%-18%.

Zhongtai Securities believes that the CRO/CDMO sector is poised for a "Davis Double Play"—a simultaneous improvement in both profitability and valuation—driven by multiple factors including the gradual recovery of investment and financing following the start of the overseas interest rate cut cycle in Q4 2024, improved sentiment from geopolitical negotiations in Q2 2025, and significant domestic innovation drug BD deals and policy announcements since 2025, all contributing to a recovery in demand.

Adding to this positive outlook is the continued supply-side consolidation over the past three years, prompting the brokerage to recommend a focused allocation to related investment opportunities.

Industrial Securities also noted that since Q4, prices have shown an upward trend across laboratory monkeys, safety evaluation quotes, and clinical project fees, with client demand remaining robust, suggesting that CRO performance is expected to enter an improvement cycle by 2026.