WuXi Apptec's stellar financial performance has significantly boosted the contract research organization (CRO) and contract development and manufacturing organization (CDMO) sector, known collectively as CXO. On August 4th, shares of WuXi Apptec in both A-shares and H-shares opened with a gap up, surging in tandem. The A-share stock hit its daily limit, while the H-share price skyrocketed by more than 14% at one point.
The Hong Kong-listed Healthcare ETF (Huabao, 159137), which allocates nearly 50% of its portfolio to CXO stocks, saw its intraday price surge over 5%. Meanwhile, the largest healthcare ETF by market size on the mainland, Huabao Healthcare ETF (512170), with a nearly 30% allocation to CXO, rose over 2%.
On the evening of August 3rd, WuXi Apptec released its half-year financial report. The company reported first-half revenue of 28.897 billion yuan, a 38.93% year-on-year increase, and net profit attributable to shareholders of 11.08 billion yuan, up 29.43% from the previous year. Specifically, net profit for the second quarter grew 38% sequentially. The company also raised its full-year guidance for 2026, now projecting total revenue of 58.5 to 60.5 billion yuan, up from the previous range of 51.3 to 53.0 billion yuan, and raising the year-on-year growth rate for continuing operations from 18-22% to 35-39%.
The strong earnings from this CXO leader continue to validate the sector's improving fundamentals. Northeast Securities noted that the current recovery in domestic and international biopharmaceutical financing, along with substantial growth in domestic innovative drug funding and multi-faceted policy support for the innovative drug industry, suggests the CXO sector may be entering a new upward cycle. The firm is bullish on the medium- to long-term investment opportunities in CXO.
With current valuation levels for A-share and H-share healthcare stocks remaining at historically low levels, the investment case is compelling. For investors looking to capture the rebound, two key tools are highlighted: Healthcare ETF (512170), the largest healthcare ETF in the market, focusing on medical devices (including brain-computer interfaces) and medical services (including a nearly 30% allocation to CXO), also covering the AI healthcare concept. Its over-the-counter feeder fund is 012323. The Hong Kong-listed Healthcare ETF (Huabao, 159137) is heavily weighted in the innovative drug supply chain, with 48% in CXO and 20% in innovative drugs, also covering rare industry leaders in AI healthcare, medical devices (including brain-computer interfaces), and other fields. Its underlying assets are Hong Kong stocks, offering high elasticity and T+0 trading. Its over-the-counter feeder fund is 026922.
Data is sourced from the Shanghai and Shenzhen stock exchanges, and China Securities Index Company, with weight data as of June 30, 2026. Institutional views include those from Northeast Securities' July 27, 2026 report, "Northeast Medical & Health Weekly Report: Continuing to View Innovative Drugs and Devices as the Medium-to-Long-Term Main Line, AI Healthcare Has Entered a Value Realization Window," and Tianfeng Pharmaceutical Yang Song's team's July 28, 2026 report, "Current Position Advises Focusing on Four Directions: Brain-Computer Interfaces, AI Healthcare, Medical Technology, and Innovation Going Global & Sentiment."
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