Bide Pharmatech Co. Ltd. A

Bide Pharmatech released its 2026 interim report, with total operating revenue of 683 million yuan and net profit attributable to the parent company of 103 million yuan. Net cash inflow from operating activities was 91.6255 million yuan, the asset-liability ratio was 17.18%, gross margin was 50.42%, return on equity was 5.01%, and diluted earnings per share was 1.20 yuan. Total asset turnover was 0.27 times, and inventory turnover was 0.36 times, down 17.80% year on year. The company had 6,060 shareholders, and the top ten shareholders held 63.19% of the total share capital.

The A-share CRO sector surged on the morning of August 7, with the sector index climbing 7.37% to top all sector gainers. Among the 41 constituent stocks, 15 rose more than 10%, including Bide Pharmaceutical, Yaokang Bio, Baihua Pharmaceutical, Apeloa Pharmaceutical, and Asymchem hitting their daily limit up, while another 17 stocks such as BioMap, Joinn Laboratories, Tigermed, and WuXi AppTec gained over 5%. Earnings were the main driver, after BioMap released a profit forecast the previous evening, projecting attributable net profit of 236 million to 246 million yuan for the first half of 2026, a year-on-year increase of 3.92 to 4.13 times. So far, eight CRO companies have reported half-year results or profit forecasts, with six expecting double-digit or higher growth. Joinn Laboratories and Medicilon had previously forecast first-half profit to double. Sector leader WuXi AppTec reported in its half-year results this week that attributable net profit reached 11.08 billion yuan in the first half, up 29.43% year-on-year, surpassing 10 billion yuan for the first time in a first half. It also raised its full-year 2026 revenue guidance to between 58.5 billion and 60.5 billion yuan, with continuing operations revenue growth raised to 35% to 39%. The turnaround in CRO earnings stems from rising orders, as a sustained recovery in global pharmaceutical investment and financing drives renewed demand for innovative drug R&D. BioMap said its two major business lines achieved dual-engine growth, while WuXi AppTec's continuing operations backlog reached 66.43 billion yuan as of end-June, up 25.2% year-on-year. A research note from China Post Securities argued that overseas R&D outsourcing demand is steadily recovering, and a boost in domestic R&D outsourcing demand is expected to materialize in 2026.