Shenwan Hongyuan Group: The disclosure period for the first quarter report of the 26th year is approaching. Focus on the innovation in medicine, CXO, and upstream.

Shenwan Hongyuan Group released a research report stating that as of April 12th, a total of 8 pharmaceutical listed companies have announced their 2026Q1 performance forecasts, with 6 showing a year-on-year profit increase and 2 showing a decline. Performance in the segments of innovative drugs, CXO, and upstream in 2026Q1 is expected to exceed expectations and are recommended as key focus areas. The growth in the CXO sector is mainly attributed to the improving global innovative drug industry outlook, strong growth in new signed orders, and the continuous increase in pharmaceutical investment and financing at home and abroad. Key points from Shenwan Hongyuan Group: Performance forecast release: As of April 12th, a total of 8 pharmaceutical listed companies have announced their 2026Q1 performance forecasts. According to their disclosed median net profit attributable to shareholders, 8 companies achieved profitability in 2026Q1. Among them, 6 showed a year-on-year profit increase, while 2 showed a decline. Profit forecast: the group made forecasts for the 2026Q1 net profit growth rates for 28 pharmaceutical and biotech listed companies, with the following projections: 1) 4 companies with growth rates of 40% or higher: Shenyang Xingqi Pharmaceutical, SMO Clinplus, Suzhou Sepax Technologies, Hubei Hongyuan Pharmaceutical Technology; 2) 9 companies with growth rates between 20% and 40%: Jiangsu Hengrui Pharmaceuticals, Jiangsu Jibeier Pharmaceutical Co., Ltd., Nanjing King-Friend Biochemical Pharmaceutical, Bide Pharmatech, Shanghai Haoyuan Chemexpress, Jenkem Technology, Teyi Pharmaceutical Group, Zhejiang Jolly Pharmaceutical, Jiuzhitang Co.,Ltd.; 3) 7 companies with growth rates between 10% and 20%: Zhejiang Jingxin Pharmaceutical, Jiangsu Nhwa Pharmaceutical, Huadong Medicine, Topchoice Medical, Shijiazhuang Yiling Pharmaceutical, Dong-E-E-Jiao, Tasly Pharmaceutical Group; 4) 3 companies with growth rates between 0% and 10%: Beijing Konruns Pharmaceutical, Aier Eye Hospital Group, Aurisco Pharmaceutical; 5) 4 companies turning around from losses: Shenzhen Chipscreen Biosciences, Suzhou Zelgen Biopharmaceuticals, Shanghai Medicilon Inc., Chengdu Olymvax Biopharmaceuticals Inc. Additionally, Biocytogen Pharmaceuticals did not disclose its net profit for 2025Q1. The group predicts its net profit for 2026Q1 to be 100 million yuan, exceeding its net profit for 2025H1 by 48 million yuan. In terms of segment analysis, the performance of innovative drugs, CXO, and upstream in 2026Q1 is expected to exceed expectations The growth in the CXO sector is mainly due to the improving global innovative drug industry outlook, strong growth in new signed orders in the industry, and the continuous increase in pharmaceutical investment and financing at home and abroad. According to Orange Data, the total global biopharmaceutical financing in 2026Q1 reached 7.573 billion US dollars, a year-on-year increase of 2.7%. In addition, research and development in the innovative drug sector and authorizations continue to be active. According to data from Dingxiangyuan, the number of new drug CDE clinical trials registered domestically in 2026Q1 reached 620, a year-on-year increase of 39.0%; the number of pharmaceutical transactions completed by domestic enterprises in 2026Q1 was 53, a year-on-year increase of 60.6%, with a total value of 52.44 billion US dollars, a year-on-year increase of 43.5%. Investment analysis recommendation The group recommends focusing on innovative drugs, CXO, and upstream sectors. Recommended companies in the innovative drug sector include: BEONE MEDICINES-U, Jiangsu Hengrui Pharmaceuticals, Jiangsu Aidea Pharmaceutical Group, Shenzhen Chipscreen Biosciences, etc.; recommended companies in the CXO sector include: WuXi AppTec, Pharmaron Beijing, Asymchem Laboratories, SMO Clinplus, Shanghai Medicilon Inc., Shanghai InnoStar Bio-tech, Biocytogen Pharmaceuticals, etc.; recommended companies in the upstream sector include: Shanghai Haoyuan Chemexpress, Suzhou Sepax Technologies, Jenkem Technology, etc. Risk warning: risks of price reduction in centralized procurement, risks of research and development failure, risks of underperformance.