$CRO (LIST1261.HK)$ All sectors are strong, as of the time of publication, wuxi apptec rose 12.77% to HK$46.8; joinn laboratories rose 12.75% to HK$8.58; wuxi bio rose 9.67% to HK$15.2; pharmaron rose 7.45% to HK$12.12.

Bocom Intl believes that the U.S. Biosecurity Act was not included in the NDAA, which means further legislation on biosecurity is delayed. The possibility of standalone legislation within the year is reduced. At the same time, the latest version of the S.3558 Act does not include Wuxi Bio. According to the U.S. legislative process, the bank believes that other mentioned companies may also be ultimately excluded. Considering the official start of the Fed's interest rate cuts, marginal improvement in industry orders, it is expected that the investment sentiment of top CXOs will marginally warm up. However, further valuation recovery may require more visibility on performance recovery.

Minsheng Securities recently pointed out that the Biosecurity Act was not included in the Senate's 2025 NDAA, rendering the rider legislation ineffective. Regarding standalone legislation, H.R.8333 will enter the Senate process, with 6 weeks left in the 2024 Senate working days. Focus on the Senate's scheduling and voting process; the Fed cuts interest rates by 50bp, and the biotech financing end is expected to continue the improvement trend in the first half of the year. Leading CXOs relying mainly on overseas customers for orders and revenue contributions are expected to further warm up.

Editor/Rocky