CITIC Construction Investment: The CXO sector's beta is steadily improving, and AI in pharmaceuticals has great potential.

CITIC Securities Research Report pointed out that after the adjustment phase of the domestic CXO industry from 2022 to 2024, the sector benefited from the early recovery of overseas investment and financing. By 2024, leading domestic CXO companies are showing signs of recovery in overseas orders. As large-scale external licensing of domestic innovative drug assets occurs in 2025, it will drive the continuous recovery of domestic investment and financing in the second half of 2025, with domestic demand in the industry stabilizing and rebounding as well. Since 2026, the long-term structural opportunities in the domestic innovative drug industry have continued to materialize, domestic investment and financing have been continuously improving, and the new drug modalities have been consistently thriving and further expanding. CITIC Securities believes that in 2026, the new signed orders and performance in the domestic CRO/CDMO industry will accelerate growth, driving the CXO industry chain into a new phase of development.