Leading CXO companies have released better-than-expected annual reports. On the morning of March 31, the A-share and H-share healthcare sectors advanced, with the Medical ETF (512170) and the HK Connect Medical ETF Huabao (159137) both rising over 2% at one point, currently up more than 1%. Constituent companies Joinn Laboratories and Asymchem Laboratories led the gains, with their A-shares briefly hitting the daily limit-up and H-shares surging over 12%.
On the previous evening, two CXO firms reported their annual results. Joinn Laboratories achieved a net profit attributable to shareholders of nearly 300 million yuan in 2025, a sharp increase of three times year-over-year. Asymchem Laboratories reported growth in both revenue and net profit, with net profit attributable to shareholders reaching 1.132 billion yuan, up 19.35% compared to the previous year.
According to statistics, the CXO weighting in the Medical ETF (512170) and the HK Connect Medical ETF Huabao (159137) is 25% and 42%, respectively.
Analysis from the Zhejiang Merchant pharmaceutical team indicates that amid ongoing industry consolidation in the CXO sector and relatively low stock prices, they are optimistic about the bottom-fishing opportunities in leading domestic CDMO companies and CRO firms benefiting from the recovery in domestic demand. Based on financial, demand, and supply data analysis, the team believes a fundamental inflection point has emerged in the CXO sector and expects a sustained recovery.
Data sources include the Shanghai and Shenzhen Stock Exchanges and the China Securities Index Company. The mentioned CXO weighting data is as of March 16, 2026.
Note: The ETF funds mentioned do not charge sales service fees. Fund fee details are available in the respective legal documents. Risk warning: The index constituents displayed are for illustrative purposes only; individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund managed by the fund management company. The composition of the underlying index constituents is adjusted according to the index compilation rules. The fund manager assesses the risk rating of the Medical ETF feeder fund and the HK Connect Medical ETF Huabao as R4—medium to high risk, suitable for aggressive (C4) and above investors. The Medical ETF is rated R3—medium risk, suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or predictions in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investment carries risks; past performance of a fund does not indicate its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of the fund. Invest with caution.
A MACD golden cross signal has formed, indicating favorable momentum for these stocks.