The Zhitong Finance App learned that Goldman Sachs released a research report saying that China's CRO and CDMO companies performed steadily in the third quarter. Despite continuing to be negatively affected by exchange factors, the momentum of new orders is still strong, and in line with the acceleration of production capacity expansion, it is believed that it can provide greater visibility for the manufacturing business next year; improvements in biotech financing, mergers and acquisitions and business development activities, as well as emerging AI drug discovery activities, also supported the rise in demand for wet laboratories.
The bank pointed out that new orders for Yao Ming Kangde (02359) in the first three quarters of this year accelerated to about 60% year on year, Kanglong Chemical (03759) increased by about 30% in the third quarter, Tiger Pharmaceuticals (03347) grew close to 30%, and Gloria Ying (06821) also maintained about 30% growth.
The updated guidelines are broadly in line with the forecast. While TCM Mingkang raised its 2026 continuous operating revenue growth guide to 40% to 42%, the capital expenditure budget continued to advance.
Stock prices in China's CRO and CDMO sectors have recently pulled back. Goldman Sachs believes that weakness has instead created better deployment opportunities. Yao Ming Kant was removed from the US Department of Defense's 1260H list, reducing the risk of being included in the preliminary BCC list through this approach. It believes that the short-term risks of the Biosafety Act have been mitigated, but changes in news at the geopolitical level may still cause fluctuations in stock prices.