According to the CITIC Securities Research Report, in the first half of 2026, the overall performance of the CXO sector and the upstream life sciences sector was steady, and the industry entered a recovery phase. Overseas investment and financing continued in the first half of the year. Expectations of the Federal Reserve's interest rate hike weakened, and the overall boom in the early research sector continued to strengthen. The rapid development of AIDD will also further catalyze the explosion of demand for related experiments and verification in the future. CITIC Securities believes that the CRO sector is expected to rise rapidly in volume and price. The CDMO sector's leading performance in the first half of the year was steady. The overall order growth rate continued to accelerate, and industry sentiment rebounded. In the medium to long term, new major drugs/new molecules/new technologies require increased process development and experimental design capabilities, and China's CDMO industry is expected to enter an era driven by the dual core of “engineer dividends” + “leading innovation dividends” through the continuous accumulation of early pipelines in the field of global biomedical innovation technology. As investment and financing recovers and price competition eases, industry demand is expected to shift from partial recovery to full recovery; domestic enterprises accelerate the layout of overseas markets, and international capacity building is progressing steadily. The medium- to long-term policy side continues to encourage breaking through the “stuck neck” core technology in the upstream sector to achieve autonomous and controllable supply chains. At the same time, small market capitalization companies with more segments in the sector have very strong beta attributes.

According to the CITIC Securities Research Report, in the first half of 2026, the overall performance of the CXO sector and the upstream life sciences sector was steady, and the industry entered a recovery phase. Overseas investment and financing continued in the first half of the year. Expectations of the Federal Reserve's interest rate hike weakened, and the overall boom in the early research sector continued to strengthen. The rapid development of AIDD will also further catalyze the explosion of demand for related experiments and verification in the future. CITIC Securities believes that the CRO sector is expected to rise rapidly in volume and price. The CDMO sector's leading performance in the first half of the year was steady. The overall order growth rate continued to accelerate, and industry sentiment rebounded. In the medium to long term, new major drugs/new molecules/new technologies require increased process development and experimental design capabilities, and China's CDMO industry is expected to enter an era driven by the dual core of “engineer dividends” + “leading innovation dividends” through the continuous accumulation of early pipelines in the field of global biomedical innovation technology. As investment and financing recovers and price competition eases, industry demand is expected to shift from partial recovery to full recovery; domestic enterprises accelerate the layout of overseas markets, and international capacity building is progressing steadily. The medium- to long-term policy side continues to encourage breaking through the “stuck neck” core technology in the upstream sector to achieve autonomous and controllable supply chains. At the same time, small market capitalization companies with more segments in the sector have very strong beta attributes.