Goldman Sachs: The pace of recovery in China's CRO/CDMO industry is clearly optimistic about pharmaceuticals, etc.

The Zhitong Finance App learned that Goldman Sachs released a research report saying that the results for the second quarter and first half of this year reflect that China's CRO/CDMO industry is clearly recovering, with corporate profits exceeding expectations, upward guidelines and strong orders. The bank gave a “buy” rating to Yao Ming Kangde (02359), Pharmaceutical Federation (02268), Gloria Ying (06821), and Kanglong Chemical (03759).

Goldman Sachs targets HK$220.1, HK$97.9, HK$37.2, HK$52.1 and HK$38.54 for Pharmaceuticals, Kanglong Chemical, Gloria Incorporated, Kanglong Chemical, Gloria, Tiger Pharmaceuticals (03347) and Kingsley (01548), respectively.

Goldman Sachs pointed out that biotech companies' profits improved in the first half of the year, and BD's revenue and operating leverage were also supported, attracting investors' attention, and market concerns about anti-corruption actions were mitigated. The bank is more optimistic about Cinda Biotech (01801), Columbai-B (06990), Conoa-B (02162), Jinfang Pharmaceuticals (02595), and Hanson Pharmaceuticals (03692). The target prices are HK$120.6, HK$581.2, HK$118.88, HK$52 and HK$52.7, respectively.