Market Insight | WuXi AppTec Surges Over 5%, Leading the CRO Concept. Improved Financing Environment Expected, Market Continues to Focus on Progress of US Biotech Legislation
Concept stocks related to CRO rose across the board in the morning session. As of the time of publication, WuXi AppTec rose by 4.67% to HKD 14.78; Kanglong Chemical Co., Ltd. rose by 4.15% to HKD 10.28; WuXi Biologics rose by 3.02% to HKD 37.5; and Tigermed rose by 2.58% to HKD 35.8. Guotai Junan Securities stated that with the decline in U.S. bond yields, market risk appetite may increase, benefiting the valuation of innovative pharmaceutical assets. In the future, as interest rates enter a downward trend, a favorable interest rate environment will improve financing, driving the substantial development of the forward-looking innovative industry chain. Fubon Securities pointed out that from a P/E ratio perspective, WuXi AppTec is currently at a turning point, believing that its risk-return curve is more likely to trend upwards than downwards. The firm noted that with the progress of the U.S. Biologics Act, especially the clearer handling of existing contracts, investors currently assume that the Act will be passed in some form; the Act should not be as stringent as it seems, and it is estimated that new projects from WuXi Biologics and its Chinese counterparts will come from the EU, China, and other regions worldwide in the next 3 to 5 years, rather than the U.S
According to the Wise Finance APP, the concept stocks of CRO rose across the board in the morning session. As of the time of publication, WuXi Biologics (02269) rose by 4.67% to HKD 14.78; Kanglong Chemical (03759) rose by 4.15% to HKD 10.28; WuXi AppTec (02359) rose by 3.02% to HKD 37.5; and Tigermed (03347) rose by 2.58% to HKD 35.8.
Guangda Securities stated that with the decline in US bond yields, market risk appetite may increase, benefiting innovative pharmaceutical assets entering a valuation uptrend. In the future, as interest rates enter a downward trend, a favorable interest rate environment will improve financing, driving the substantial development of the forward-looking innovative industry chain.
Furui pointed out that from a P/B ratio perspective, WuXi Biologics is currently at a turning point, believing that its risk-return curve is more likely to trend upwards than downwards. The firm noted that with the progress of the US Biologics Act, especially the handling of existing contracts becoming clearer, investors are assuming that the Act will be passed in some form; the Act should not be as harsh as it seems, and it is estimated that new projects from WuXi Biologics and its Chinese counterparts will come from the EU, China, and other regions worldwide in the next 3 to 5 years, rather than the US