China CRO Sector: H126 preview: top-line growth remains intact

Research evidence excerpt

China CRO Sector: H126 preview: top-line growth remains intact

Global Research

13 July 2026ab

China CRO Sector Equities

ChinaH126 preview: top-line growth remains intact

Healthcare

Chen Chen, PhD

Resilient operations despite FX and fair value headwinds Analyst

We expect the upcoming H126 results to reinforce our view that CDMO names will likely chen-zb.chen@ubs.com

continue to outperform, supported by robust demand for new modalities and healthy +86-10-5832 8201

order momentum. During our recent virtual tour, participating CDMO/CROs (WuXi XDC, David Guo, PhD

WuXi Biologics and Joinn) broadly reiterated their full-year guidance. We think this could Analyst

anchor near-term market expectations, despite headwinds from FX (CNY/USD S1460524040001

appreciated 5.4% YoY in H126) and fair value fluctuations (driven by unrealised losses david-za.guo@ubs.com

indicated by HSBIO index decline of 10.8% in H126, though biopharma funding remains +86-10-5832 8010

resilient). Meanwhile, CROs are reporting improving new orders along with a margin Anita Wei

recovery but continue to digest legacy low-priced orders. Analyst

anita.wei@ubs.com

Solid CDMO demand for new modalities and chemicals; minimal 1260H impact +852-2971 7459

We expect WuXi AppTec to deliver strong TIDES revenue growth in Q226, with +40%

YoY guided for 2026 despite only up 6.1% YoY in Q1 due to quarter volatility and

revenue recognition timing. We also see sustained momentum in small molecules,

driven by GLP-1 and other novel drugs. The impact from Section 1260H is likely minimal

on the company. Pharmaron's H126 prelim result was a beat, with new orders up 30%

YoY (lab +20%; small molecule CDMO +50% YoY). WuXi Bio reiterated 2026 revenue

growth guidance of 13-17% (16-20% excluding FX), and highlighted bispecific project