A total of 95 healthcare stocks have released their mid-year earnings forecasts, with only 17 demonstrating high-quality growth. Conversely, 41 have reported significant profit declines, highlighting the importance of careful stock selection. After reviewing the mid-year performance data, I found that only 17 companies achieved both a net profit exceeding 100 million yuan and double-digit growth. Among these, Fuxiang Co., Ltd. and Zhaoyan New Drug reported growth exceeding tenfold. Additionally, Haisco Pharmaceutical Group, Jian'an Medical, Liaoning Cheng Da Co., Ltd., Hisun Pharmaceutical, Zhejiang Huahai Pharmaceutical Co., Ltd., and Jilin Aodong Pharmaceutical Group all managed to maintain solid growth while posting profits above 500 million yuan. The primary drivers of this substantial growth were the CXO (Contract Research Organization) sector, innovative drug companies, and firms experiencing a rebound following the implementation of centralized procurement policies.
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Within the group of healthcare stocks with a market capitalization exceeding 5 billion yuan, 17 have reported declining profits. Porton Pharma Solutions Ltd. reported a loss of 230 million yuan. Companies such as Double Crane Pharmaceutical Co., Ltd., KPC Pharmaceuticals, Inc., Wandong Medical, and Sunshine Nuohé also fell into loss-making territory. Furthermore, Tasly Pharmaceutical Group Co., Ltd., Sinopharm Group Co., Ltd., Beijing Tiantan Biological Products Co., Ltd., and Changchun High & New Technology Industry (Group) Inc. all experienced profit declines of over 50%. The sectors most affected by these declines were traditional Chinese medicine, chemical pharmaceuticals, and generic drugs.
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Zhaoyan New Drug is projected to report first-half 2026 revenue between 6.7 and 7.4 billion yuan, with profits ranging from 600 million to 900 million yuan. The company's mid-year earnings are expected to show a more than tenfold increase. This explosive growth is primarily driven by a significant appreciation in the fair value of its biological assets, specifically experimental monkeys, coupled with a steady recovery in its core business. During the reporting period, compliant experimental monkey market prices continued to recover. Combined with the natural growth and maturation of the company's existing monkey population, this led to a substantial positive fair value adjustment for these biological assets, contributing significantly to profit. Simultaneously, the company's core CRO (Contract Research Organization) safety assessment business is steadily recovering, with a healthy pipeline of new and existing orders. Stable laboratory operations and a recovering business environment, amplified by a low profit base in the same period last year, have collectively driven the surge in net profit.
Jilin Aodong Pharmaceutical Group forecasts mid-year profit growth between 50% and 70%, with net profit estimated between 190 million and 220 million yuan. The company's strong mid-year performance is underpinned by a dual-engine strategy: a solid and improving core pharmaceutical business and a substantial increase in financial investment returns. Its core traditional Chinese medicine products continue to gain market share with steady promotional efforts, leading to continuous improvement in operational quality. Concurrently, the company's integrated model of pharmaceuticals and financial capital is bearing fruit, with equity investments and returns from the financial sector showing a significant year-on-year increase, forming a core component of the profit growth. These factors, combined with optimized operational management and enhanced profitability, have collectively driven the substantial increase in net profit.
Porton Pharma Solutions Ltd. expects its 2026 revenue to grow between 8% and 12%, reaching a range of 1.75 to 1.82 billion yuan. However, its profit is projected to decline sharply, resulting in a loss of 210 to 250 million yuan. The company's mid-year report reveals a significant loss, primarily due to a one-time impairment provision of 330 million yuan compounded by a downturn in industry sentiment. The loss stems from the termination of its R&D and production base project in Slovenia following a partner's contract cancellation and changes in the external environment. A full impairment provision on the related assets resulted in approximately 330 million yuan in non-recurring losses, turning a potential profit into a reported loss.
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