Source: Zhitong Finance
Author: Wang Qiujia

CRO concept stocks had the highest decline. As of press release, Kanglong Chemical fell 9.19%, Zhaoyan New Pharmaceutical fell 7.78%, Pharmaceutical Kangde fell 6.59%, and Tiger Pharmaceuticals fell 7.82%.

According to the news, CXO's leading annual reports have been released one after another recently. Judging from financial data, the performance of Yao Ming Kangde and Kanglong Chemical has achieved varying degrees of growth; in addition, the growth of Tiger Pharmaceuticals's various performance indicators is slightly weak. In 2023, the company achieved total revenue of 7.384 billion yuan, an increase of 4.21% year on year; net profit to mother was 2,025 billion yuan, an increase of 0.91% year on year; the performance of Zhaoyan New Pharmaceutical and Gloria Ying declined markedly. In terms of performance figures alone, industry companies are collectively slowing down.

Southwest Securities previously pointed out that the Federal Reserve maintains high interest rates, and first-level pharmaceutical investment and financing may continue to recover under the influence of the macroeconomic context. 1) Based on current economic data, the market predicts that there is a high probability that the Federal Reserve may cut interest rates in Q2. The biomedical first-level investment and financing environment may improve, market liquidity is expected to recover, and the innovative drug industry chain will generate valuation repair opportunities; 2) COVID-19 commercial orders from leading CXO companies have basically been digested, the geographical game has yet to be implemented, and the sector valuation system is about to be reshaped; 3) sector valuations have fallen back to the bottom of history, and individual stock valuations are still divided.

Editor/Jeffy