According to the Zhitong Finance APP, CRO concept stocks are collectively rising. As of the time of publication, Joinn Laboratories (06127) rose 2.96% to HKD 7.3; Wuxi Apptec (02359) rose 2.56% to HKD 34.05; Asymchem Laboratories (06821) rose 2.5% to HKD 40.95; Wuxi Bio (02269) rose 2.09% to HKD 10.74; Pharmaron (03759) rose 1.86% to HKD 8.75.

On the news front, Federal Reserve Chairman Powell has previously released a strong signal of interest rate cuts. Institutional analysis believes that under the expectation of interest rate cuts, global CXO leading market orders are expected to continue to improve. It is reported that in the first half of the year, Pharmaron's new signed order amount increased by more than 15% year-on-year; Asymchem Laboratories' new signed order in the first half of the year increased by more than 20% year-on-year, and the second quarter increased significantly compared to the first quarter; by the end of June 2024, Wuxi Bio's unfinished order volume increased to USD 20.11 billion, and the volume of unfinished orders within three years was about USD 3.64 billion.

Guosen Securities also pointed out that from the interim/interim performance forecasts of Asymchem Laboratories, Pharmaron, and Wuxi Apptec, it can be seen that with the stabilization and recovery of overseas investment and financing, CXO overseas orders are showing a clear rebound trend, and the growth rate of new signed orders is accelerating quarter by quarter. If we do not consider the impact of bills' uncertainty, it is expected that the molecular end of the CXO industry will show a quarter-by-quarter improvement starting from 24Q2. It is recommended to pay attention to the performance of leading CXO companies with a large overseas proportion and the investment opportunities brought by valuation recovery.