Joinn Laboratories(China)Co

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.

WuXi AppTec released its 2026 half-year report, with first-half net profit attributable to the parent company surpassing 10 billion yuan for the first time to reach 11.08 billion yuan, up 29.43 percent year on year. The results triggered multiple limit-up moves in the CXO and pharmaceutical sectors across both A-shares and Hong Kong stocks on August 4. WuXi AppTec's A-shares hit the 10 percent daily limit up that day, while its Hong Kong shares closed 11.17 percent higher. The company's first-half revenue was 28.9 billion yuan, up 38.93 percent year on year, and it raised its full-year revenue guidance to a range of 58.5 billion to 60.5 billion yuan. Buoyed by WuXi AppTec's performance, A-share companies such as GemPharmatech, Porton Pharma Solutions, and Medicilon rose over 13 percent, while Hong Kong-listed GenScript Biotech gained over 11 percent, and Pharmaron, Asymchem, and Tigermed climbed more than 5 percent. Several CXO firms had previously issued positive profit alerts. Pharmaron expects first-half net profit to grow 34 to 45 percent year on year, Joinn Laboratories forecasts a staggering 884.9 to 1,377.4 percent surge in net profit attributable to the parent, and Medicilon anticipates swinging to a profit. The innovative drug segment also strengthened, with Biopuris and HitGen rising over 14 percent, while Luoxin Pharmaceuticals, Jimin Health, and ZBD Pharmaceutical hit the 10 percent daily limit up. Meanwhile, Alphamab announced it has granted overseas rights for its TROP2/HER3 bispecific antibody-drug conjugate SKN016 to Pathos AI, in a deal with a total potential value exceeding 2.2 billion US dollars.

As of the close on July 23, 99 A-share biomedical companies have released their 2026 half-year earnings forecasts, with 60 projecting growth in net profit attributable to the parent and 39 forecasting a decline. Fushine Pharma expects net profit attributable to the parent to rise by 2,487 percent to 3,204 percent, Joinn Laboratories anticipates an increase of 884.9 percent to 1,377.4 percent, and Medicilon, Haisco Pharmaceutical, and ST Wanbang also see maximum growth exceeding 500 percent. The chemical pharmaceutical sector is broadly positive, with 25 of the 36 companies that issued forecasts expecting growth. The biologics segment is underperforming, with only 2 of the 9 companies that issued forecasts projecting an increase. Out-licensing of innovative drugs overseas is active, with total out-licensing deal value in the first half reaching approximately 110 billion US dollars. Haisco Pharmaceutical achieved significant performance growth through multiple out-licensing deals. The price of laboratory monkeys continues to rise, with the unit price of cynomolgus monkeys climbing to 178,000 yuan, driving substantial profit forecast increases for CRO companies such as Joinn Laboratories and Medicilon.

On the morning of July 16, the three major A-share indices fell collectively. The Shanghai Composite Index dropped 0.82% to 3,923.2 points, the Shenzhen Component Index fell 0.83%, the ChiNext Index declined 1.73%, and the STAR Composite Index slipped 0.76%. Over 3,200 stocks across the market rose. The film and cinema sector bucked the trend, with Ruyi Film hitting the daily limit for a second straight session, Huanrui Century notching its third daily limit in six sessions, Shanghai Film surging by the daily limit, and Enlight Media jumping nearly 7%. In news, the movie "Eight Immortals" produced by Ruyi Film is set for release on July 18, with pre-sale box office exceeding 50 million yuan. Total box office for 2026 has surpassed 19 billion yuan, and the summer season box office has topped 3.3 billion yuan. CRO concept stocks rallied again, with Joinn Laboratories soaring 8.49%. The company expects first-half net profit attributable to shareholders of 600 million to 900 million yuan, a year-on-year increase of 884.9% to 1,377.4%, mainly due to rising prices of laboratory monkeys. A research report from Zheshang Securities pointed out that the domestic supply-demand gap for laboratory monkeys from 2026 to 2028 is at least 15,000 to 20,000, and monkey prices may remain high. ChangXin Technology opened for subscription today, with an issue price of 8.66 yuan per share, planning to issue 6.688 billion new shares, or 7.691 billion shares if the over-allotment option is fully exercised. The online lottery winning rate is expected to be in the range of 0.3% to 0.7%. In Hong Kong, the Hang Seng Tech Index rose over 3%, Alibaba gained over 5%, Tencent added 2.6%, and Xiaomi and Meituan both surged over 5%.

Shares of lab animal concept stocks remain active, with Joinn Laboratories hitting the daily upper limit today, marking its third upper limit in five trading days. The company expects attributable net profit for the first half of 2026 to be between 600 million and 900 million yuan, a year-on-year increase of 884.9% to 1,377.4%. The surge in performance is mainly due to rising market prices for lab monkeys combined with natural growth appreciation. According to data from the Chinese Government Procurement Network, the procurement unit price of cynomolgus monkeys rose from 92,000 yuan in May 2025 to 190,000 yuan in June 2026. A research report from Zheshang Securities points out that domestic annual demand for lab monkeys has exceeded 40,000, with a shortfall of nearly 10,000. It is estimated that the supply-demand gap will be at least 15,000 to 20,000 from 2026 to 2028, and monkey prices may remain elevated.

The Hang Seng Index rose for a fourth consecutive session in Hong Kong on the 15th, gaining 340.37 points, or 1.40 percent, to 24,681.10, recovering to its highest level in about a month. Slowing growth in the US Consumer Price Index eased expectations for US interest rate hikes, improving investor sentiment and lifting the market. The H-share Index, which tracks Chinese mainland enterprises, also advanced for a fourth day, adding 81.30 points, or 1.00 percent, to 8,184.38. Among individual stocks, Joinn Laboratories surged 23.8 percent and Qiming Oriental Holdings jumped 35.0 percent, with the biopharmaceutical, logistics, and consumer sectors gaining, while Yanchang Petroleum International fell 10.0 percent, reflecting weakness in the oil sector. China's April-to-June GDP growth came in below market expectations, capping upside, and the Shanghai Composite Index slipped 0.29 percent to 3,955.58, snapping its winning streak.

On July 15, the CRO sector led gains in the A-share market, with all stocks in the sector trading in positive territory. ChemPartner opened 1.04% higher in the morning session and quickly surged, eventually hitting the 20% daily limit up at 10.39 yuan per share, a gain of 19.98%. Joinn Laboratories and Baihua Pharmaceutical also hit their daily limit up, while Wanbang Pharmaceutical and OPM Biosciences rose more than 10%.