Goldman Sachs: Mainland CDMO sector is stable, bullish on WuXi AppTec (02359), Asymchem Laboratories (06821), etc.

Goldman Sachs released a research report on the mainland pharmaceutical industry, stating that the performance of CDMO companies reflects the steady cycle of the sector, and visibility increasingly depends on exposure to later-stage and commercial projects, rather than early-stage financing conditions. AI has not caused structural damage to order volume, order backlog quality, or pricing. On the contrary, the performance of medical equipment and medical service companies validates the uneven progress of different stocks. Although most of the resistance to volume-based procurement (VBP) and medical insurance payment method reform (DRG/DIP) seems to have been digested, differences still exist in sales recovery, pricing capability, and profit visibility. In terms of stocks, the bank holds a more positive attitude towards stocks rated "buy," including WuXi AppTec (02359), Asymchem Laboratories (06821), Minimally Invasive Siasun Robot & Automation (02252), and Jingfeng Medical (02675). Additionally, the bank upgraded AK MEDICAL (01789) to a "buy" rating, reflecting its restarted execution power, improved profit margin, and clearer mid-term visibility, and upgraded Microport Medical (02235) to "neutral" due to better-than-expected domestic competition impact and orderly achievement of the 2026 guidance. On the other hand, the bank holds a cautious stance on WEIGAO GROUP (01066) and Topchoice Medical (600763.SH), downgrading them to "neutral" and "sell" respectively. The former is affected by continued profit pressure related to VBP and lackluster short-term growth, and the latter's income is accelerating but still uncertain, with limited upside potential.