Goldman Sachs has released a research report indicating that the second quarter and first-half results this year reflect a clear recovery in China's CRO/CDMO industry, with companies exceeding earnings expectations, raising guidance, and reporting robust order books. The bank has assigned "Buy" ratings to Wuxi AppTec (02359), WuXi XDC (02268), Asymchem (06821), and Pharmaron (03759).

Goldman Sachs has set target prices of HK$220.1 for Wuxi AppTec, HK$97.9 for WuXi XDC, HK$37.2 for Pharmaron, HK$168.2 for Asymchem, HK$52.1 for Tigermed (03347), and HK$38.54 for GenScript (01548).

The investment bank noted that biotech companies turned profitable in the first half of the year, with business development revenue and operational leverage also receiving support, attracting investor attention. Additionally, market concerns over anti-corruption measures have eased.

Within the sector, Goldman Sachs prefers Innovent Biologics (01801), Kelun-Biotech (06990), KeyMed Biosciences (02162), GenFleet Therapeutics (02595), and Hansoh Pharmaceutical (03692), all rated "Buy." The target prices are HK$120.6, HK$581.2, HK$118.88, HK$52, and HK$52.7, respectively.