MORIMATSU INTL (02155) rose more than 8%, reaching a 7.97% increase at the time of writing, trading at HK$9.08 with a turnover of HK$22.42 million.

A research report from Cinda Securities noted that domestic competition has rationalized since the second half of 2024, with gross margins gradually recovering to reasonable levels. The rebound in innovative drug financing and frequent BD transactions are driving CMO recovery, which is expected to gradually extend to the pharmaceutical equipment sector, potentially leading to a cyclical turnaround.

Additionally, due to global strategic safety backups and commitments from multinational pharmaceutical companies (MNCs) to invest in local production under U.S. government policies, overseas capital expenditures in the pharmaceutical sector are projected to accelerate over the next three years.

Kaiyuan Securities highlighted that MORIMATSU INTL, as a global leader in high-end pressure equipment, benefits from the recovery in pharmaceutical industry CAPEX and overseas MNC expansion demand. The company has seen rapid growth in new orders, with the second-phase capacity in Malaysia shortening project cycles.

Furthermore, its acquisitions of Pharmadule and BioVectra have strengthened its biopharmaceutical capabilities, while its "MVP" digital intelligence solutions are driving strong earnings growth.