Understanding the Market | CRO Concept Stocks Rise in the Afternoon, Federal Reserve's Rate Hike Cycle Nearing End, Overseas CXO Demand Expected to Improve First
Concept stocks related to CRO collectively rose in the afternoon, with Tigermed, Frontage, Pharmaron, Asymchem, and WuXi Biologics all seeing an increase in stock prices. Pacific Securities pointed out that innovative drug CXO is at the bottom of the industry cycle, and it will take some time to improve in the future. Generic drug CXO continues to grow, with a promising development momentum. With the end of the Fed's interest rate hike cycle, investment and financing are expected to pick up, and overseas demand will improve first. Sinolink Securities believes that the trend of global order transfer is accelerating, benefiting production capacity in China and other countries. The engineer dividend will continue for a relatively long time
According to the Wisdom Finance app, CRO concept stocks collectively rose in the afternoon. As of the time of publication, Tigermed (03347) rose by 9.85% to HKD 29.55; FRONTAGE (01521) rose by 6.58% to HKD 0.81; Pharmaron (03759) rose by 4.72% to HKD 8.65; Asymchem (06821) rose by 2.47% to HKD 47.65; WuXi Biologics (02269) rose by 1.97% to HKD 11.4.
Pacific Securities pointed out that the overall innovative drug CXO is at the bottom of the industry cycle, with the growth rate of performance slowing down or declining. It will take some time for the recovery of Biotech investment, the landing of orders, and the improvement of performance. Generic drug CXO continues to grow rapidly, with new signed orders maintaining a high growth rate, showing good development momentum in the future. With the end of the Fed's interest rate hike cycle in the future, gradual easing of liquidity is expected to bring about a recovery in investment and financing. Overseas demand is expected to improve before domestic demand. At the industry level, it is recommended to pay attention to changes in the Fed's interest rate policy, marginal changes in investment and financing, gradual recovery of overseas demand, geopolitical factors, and the introduction of potential domestic innovative drug industry support policies.
Cinda Securities believes that the continuous growth of offshore outsourcing contract amounts further validates the global trend of order transfer. Although European and American CXO companies dominate the global major markets, due to reasons such as labor costs, environmental pressures, and capacity allocation, global capacity continues to shift to countries like China and India. It is expected that the cost advantages brought by the engineer dividend will continue for a long time