Asymchem Laboratories Tian Jin Co Ltd

The A-share CRO sector surged on the morning of August 7, with the sector index climbing 7.37% to top all sector gainers. Among the 41 constituent stocks, 15 rose more than 10%, including Bide Pharmaceutical, Yaokang Bio, Baihua Pharmaceutical, Apeloa Pharmaceutical, and Asymchem hitting their daily limit up, while another 17 stocks such as BioMap, Joinn Laboratories, Tigermed, and WuXi AppTec gained over 5%. Earnings were the main driver, after BioMap released a profit forecast the previous evening, projecting attributable net profit of 236 million to 246 million yuan for the first half of 2026, a year-on-year increase of 3.92 to 4.13 times. So far, eight CRO companies have reported half-year results or profit forecasts, with six expecting double-digit or higher growth. Joinn Laboratories and Medicilon had previously forecast first-half profit to double. Sector leader WuXi AppTec reported in its half-year results this week that attributable net profit reached 11.08 billion yuan in the first half, up 29.43% year-on-year, surpassing 10 billion yuan for the first time in a first half. It also raised its full-year 2026 revenue guidance to between 58.5 billion and 60.5 billion yuan, with continuing operations revenue growth raised to 35% to 39%. The turnaround in CRO earnings stems from rising orders, as a sustained recovery in global pharmaceutical investment and financing drives renewed demand for innovative drug R&D. BioMap said its two major business lines achieved dual-engine growth, while WuXi AppTec's continuing operations backlog reached 66.43 billion yuan as of end-June, up 25.2% year-on-year. A research note from China Post Securities argued that overseas R&D outsourcing demand is steadily recovering, and a boost in domestic R&D outsourcing demand is expected to materialize in 2026.

Biologics CDMO AsymBio is set to secure 1.2397 billion yuan, approximately $184 million, from Asymchem Group, Hillhouse Qirui and other investors to support its long-term growth. Asymchem Group will contribute 1.05 billion yuan while Hillhouse Qirui will invest 177 million yuan, with Asymchem Group's shareholding in AsymBio rising to 83.4965 percent after the transaction. The funds will be used for AsymBio's principal business operations and to drive further expansion of its manufacturing capacity, including research and development capabilities, GMP manufacturing lines, and high-containment facilities. AsymBio generated 470 million yuan in revenue during 2025, with revenue for the first quarter of 2026 exceeding 140 million yuan. The company operates as a subsidiary of Asymchem Group and focuses on biopharmaceutical CDMO services from early-stage development to large-scale commercial manufacturing, with experience in ADCs and expansion into NDCs and protein-based therapeutics.

Leading CRO WuXi AppTec saw its A-shares hit the daily limit on August 4, closing at 141.35 yuan, with total market value rising by approximately 38.3 billion yuan from the previous day to 421.754 billion yuan, a new high since August 2021. Its Hong Kong shares also gained 11.17 percent. The company's earlier semi-annual report showed first-half 2026 revenue of 28.9 billion yuan, up 38.9 percent year-on-year, and net profit attributable to the parent of 11.08 billion yuan, up 29.43 percent year-on-year, marking the first time half-year net profit exceeded 10 billion yuan. It also raised its full-year revenue guidance to 58.5 to 60.5 billion yuan. On the day, the A-share CRO index surged 7.94 percent, with Asymchem and Porton Pharma Solutions among multiple stocks hitting the daily limit or rising over 10 percent, while Hong Kong-listed pharmaceutical outsourcing concept stocks also rallied. WuXi AppTec's chemistry business revenue reached 24.986 billion yuan in the first half, up 53.28 percent year-on-year, with TIDES business revenue at 7.26 billion yuan, up 44.3 percent. However, global capacity expansion in the GLP-1 space is intensifying competition, with Novo Nordisk, Eli Lilly, and domestic player Asymchem all expanding capacity.

On August 4, major A-share indices opened collectively higher. The innovative drug concept continued to climb, with the CXO segment leading the gains. WuXi AppTec surged in a straight line to hit its daily limit-up, and Asymchem, Luoxin Pharmaceuticals, Jimin Health, and Harbin Medisan also hit limit-up. In terms of news, WuXi AppTec released its 2026 half-year report, with first-half revenue of 28.9 billion yuan, up 38.9 percent year-on-year, and attributable net profit exceeding 10 billion yuan for the first time in a first half, reaching 11.08 billion yuan, up 29.43 percent year-on-year. The company raised its full-year 2026 performance guidance across the board, lifting expected total revenue from a range of 51.3 billion to 53 billion yuan to a range of 58.5 billion to 60.5 billion yuan. The computing power leasing concept was repeatedly active, with QingCloud Technologies hitting the 20 percent limit-up and Meili Cloud achieving a three-day winning streak. Data from the China Academy of Information and Communications Technology showed that domestic AI computing power demand surged 417 percent year-on-year in the first quarter of 2026, while effective supply grew only 128 percent, widening the supply-demand gap. The nuclear power sector also strengthened, with LBT hitting a two-day winning streak. In terms of news, the National Development and Reform Commission and the National Energy Administration issued the 15th Five-Year Plan for New Power System Construction, proposing to promote large-scale nuclear power construction, with installed nuclear power capacity reaching approximately 110 million kilowatts by 2030.