China CXO: 1H26/Q2Q6 preview – Constructive: Demand resilient, pricing inflecting, new growth engines

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China CXO: 1H26/Q2Q6 preview – Constructive: Demand resilient, pricing inflecting, new growth engines

ve impact on China J.P. Morgan Securities (China) Company Limited

CDMO, a key segment of the CXO sub-sector. Overall, we broadly maintain our

forecasts and lift forecasts slightly for WuXi Apptec, Genscript (the largest

increase) and Tigermed (see Table 1JPMforecastchangesumary*WXBshouldshow0%changeinPT* for the forecast changes). WuXi AppTec and

WuXi Bio remain our top picks in the China CXO space, as we expect continued

strong financial results.

• Overall global CXO demand remained robust. Global CDMO leaders

corroborate a healthy backdrop: Lonza (covered at JPM by Zain Ebrahim)

delivered a strong 1H26 and lifted its FY26 CORE EBITDA margin guidance

to 33–34% (from above-32%) while reiterating 11–12% CER sales growth.

Samsung Biologics (covered at JPM by Jihyun Cho) grew 2Q26 revenue ~30%

YoY and now expects to reach the upper end of its FY26 sales guidance of 15-

20% growth. WuXi AppTec and WuXi Bio remain our top picks given their

expected strong financials and global competitiveness.

• Pricing is improving for CXO projects — an encouraging leading

indicator. A number of global CXO peers expect margin improvement in

FY26, which could suggest an upward trend in CXO project pricing. In our

recent interaction with Tigermed, management noted June new-order pricing

recovered ~10ppt from the YE25 trough, a sign that competitive discounting

is fading. Given the 6–9-month lag from booking to P&L, this pricing

inflection could begin flowing through from early 2027 onwards, if not earlier.

Equity Ratings and Price Targets

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