CRO concept stocks collectively advanced, with Asymchem (06821) rising 6.27% to HK$82.2, Tigermed (03347) up 5.48% to HK$48.92, Joinn (06127) gaining 5.19% to HK$23.52, Pharmaron (03759) increasing 3.37% to HK$22.68, and Wuxi Apptec (02359) climbing 3.12% to HK$109.1 at the time of writing. Zhongtai Securities suggests the CRO and CDMO industry is experiencing synchronized domestic and international demand growth, with a gradual clearing of supply-side capacity. 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 due to geopolitical negotiations in Q2 2025, and the landing of major domestic innovative drug BD deals alongside key policy releases since 2025—demand in the CRO and CDMO sector is progressively recovering. Coupled with continued supply-side adjustments over the past three years, the sector is poised for a "Davis double play," where both profitability and valuation are expected to rise, making it advisable to focus on related investment opportunities. Industrial Securities notes that benefiting from the outbound expansion of innovative drug BD and stabilized financing conditions, new orders for several CRO companies have accelerated quarter by quarter, with project volumes achieving double-digit growth. Since Q4, prices have shown an upward trend across various areas—from laboratory monkeys and safety evaluation quotes to clinical project pricing—while client demand remains robust, indicating that CRO earnings are expected to enter an improvement cycle by 2026. On the international front, China's CDMO sector holds an irreplaceable position in the global supply chain, and the Federal Reserve's interest rate cuts are likely to support a recovery in early-stage global R&D demand. Global CDMO orders remain strong, underpinning high confidence in sustained earnings growth.