China CXOs 1H26 results preview: recovery broadens; earnings delivery becomes the key driver in 2H26e

Research evidence excerpt

China CXOs 1H26 results preview: recovery broadens; earnings delivery becomes the key driver in 2H26e

10 July 2026

Equity Research Report

China CXOs EquitiesHealth Care

1H26 results preview: recovery broadens; earnings

delivery becomes the key driver in 2H26e China

◆ Recovery broadens; small molecules, GLP-1 outperforms, and Linda Shu*, PhD (Reg. No. S1700522120001)

ADC growth remains intact, but digesting high expectations Head of China Healthcare Research HSBC Qianhai Securities Limited

linda.y.l.shu@hsbcqh.com.cn

◆ Prefer execution certainty, backlog visibility, commercial +86 755 88983246

conversion and global manufacturing footprint Oliver Wang* (Reg. No. S1700523100003)

Analyst, China Healthcare Research

HSBC Qianhai Securities Limited

◆ Maintain Buy on CXO stocks with updated target prices oliver.h.y.wang@hsbcqh.com.cn

+86 21 5066 2058

1H26 preview: recovery broadens, but stock performance diverges. We expect Evie Liu* (Reg. No. S1700119110001)

Associate

the sector to deliver promising 1H26e revenue growth of c18%, while the share price Shenzhen

performance has been more divergent. WuXi AppTec A/H and Asymchem have

outperformed the sector (up 20%-plus in L3M), driven by stronger small-molecule

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

demand, accelerating GLP-1/TIDES orders and positive earnings revisions. Meanwhile, not registered/ qualified pursuant to FINRA regulations

WuXi XDC has lagged (down 1% in L3M) as investors digest its higher expectations

for ADCs and valuation. We expect our coverage to deliver c18% revenue growth

and net profit growth, respectively, in 2026e, supported by backlog conversion, and

improving utilisation. Despite a positive YTD share price performance, we see still