HK Stock Market Move | ADICON HOLDINGS (09860) closed up more than 9%, Goldman Sachs said there are signs of industry recovery, and the company's performance is better than its peers in ICL.

ADICON HOLDINGS (09860) surged more than 13% in midday trading, closing up 9.27% at HK$6.6 with a turnover of HK$41.5311 million. On the news front, the latest research report from Goldman Sachs indicates that the Chinese diagnostic industry, including Independent Clinical Laboratories (ICL) and In Vitro Diagnostics (IVD) companies, are showing signs of recovery starting in the third quarter of 2025. In the ICL sector, both Guangzhou Kingmed Diagnostics Group and Dian Diagnostics Group reported improved operating cash flow, revenue growth on a quarter-on-quarter basis, and expanded profit margins, although both companies did not meet their revenue targets. Goldman Sachs believes that these trends indicate that industry consolidation has begun. China Securities Co., Ltd. also pointed out in their research report that the revenue decline in the ICL sector in the third quarter of 2025 has narrowed, but profitability continues to be affected by impairment. The bank emphasized that the growth rate of the ICL industry is uncertain, but companies with good cost and quality control are expected to gain market share. As for the performance in the first half of the year, ADICON's gross profit reached 450 million, with a net profit of 43 million, making it the most profitable among the top three ICL companies. Dian Diagnostics Group turned from a loss to a profit, achieving a net profit of 10.27 million; while Kingmed remains in a loss position.