Tragic! The dragon's head was cut off, and some people could not stand it
Investors who bought Hong Kong stocks wuXi Biologics, these two days can be described as great joy and sorrow, the day before yesterday plunged more than 30%, but now there are international giants said that the stock price can rise more than 2 times. But in the face of the CXO sector, which is constantly falling, how much patience can investors have?
Faucet drawdown over 60%
Due to the external negative news, in the past two days, hong Kong stock CXO (referring to pharmaceutical outsourcing, mainly divided into R & D outsourcing, production outsourcing, sales outsourcing, that is, CRO, CMO / CDMO, CSO three links) leading WuXi Biologics plummeted. Following a intraday drop of more than 30% on Tuesday, the last two trading days have closed in a row, and today it is down 5.36%.
In fact, since the intraday record high of HK$148 on 2 July 2021, WuXi Biologics has been oscillating all the way down, with a sharp drawdown of 60.6% in about 7 months based on the latest closing price of HK$58.3, and the total market value has evaporated by about HK$378.1 billion.
The A-share CRO sector collapsed again
In addition to WuXi Biologics, today's CRO plate led by WuXi AppTec in A shares has collapsed again. The data shows that the CRO sector index fell 3.6% today, the largest single-day decline in nearly two months since December 15, 2021. And since the intraday record high of 2614.26 points on October 8, 2021, the sector index has so far pulled back by 29.2%.
The market value evaporated by more than 270 billion yuan
Just looking at the cro sector since 2022, the CRO sector is also very poor overall. According to Oriental Wealth Choice data, 22 of the 24 CRO concept stocks have fallen since 2022, 19 have fallen by more than 10%, and 12 have fallen by more than 20%. The most ruthless medicine stone technology, since 2022 has plummeted 41.12%. The latest market value of the sector was 768.538 billion yuan, which was 275.206 billion yuan from 1043.744 billion yuan at the end of 2021.
As for the leading stock WuXi AppTec, after almost falling to a halt the day before, it plunged 7.41% again today. According to the latest closing price of 85.86 yuan, compared with the record high price of 172.49 yuan set in the intraday on July 16, 2021, it is a retracement of 50.22%, officially reaching the waist slash level. The decline since 2022 is 27.59%.
"Public Recruitment Sister" is very hurt
The overall weakness of the CRO sector undoubtedly makes people contact the public fund "New Sister" Gülen, after all, it has always been partial to the CRO sector, which can be seen from Gülen's top ten positions in the largest CEIBS medical and health hybrid fund.
If the Gülen fund under management is consolidated, assuming that Gülen's position has remained unchanged since 2022, the market value of the shares held by its top ten positions has evaporated by nearly 14 billion yuan since 2022.
Gülen products redeemed for large sums?
Perhaps because the heavy stocks fell too fiercely, today the market suddenly reported that Gülen's products suffered a huge redemption, the amount of 40 billion yuan. However, according to the Financial Associated Press, the China Europe Fund responded that the "large redemption" spread on the Internet is false news, please do not believe the rumors. In addition, the Financial Associated Press also inquired about a number of insurance institutions and wealth management subsidiaries, all of which said that they had not redeemed the relevant funds in recent days.
However, in the Largest Sino-European Medical and Health Hybrid Fund managed by Gülen, many basic people said that they could not stand it, and many basic people said that they had cleared their positions.
Institutions are still supporting the CXO sector
Although the CXO sector has been falling and falling recently, the CXO industry is still highly praised by institutions. Shanxi Securities pointed out that benefiting from the global and domestic innovative drug research and development boom, the industry continued to grow at a high speed. The domestic CXO industry presents a pattern of many, small and scattered, the market concentration is low, and in the future, with the advancement of industry policies and the improvement of domestic drug quality standards, the concentration of the domestic CXO industry is expected to be further improved.
Debon Securities said that there is no need to over-interpret the external bearishness in recent days, the fundamentals of the CXO plate are still solid, and the current position is already cost-effective. Domestic CXO enterprises have long passed the era of simple processing and manufacturing, and have global core competitiveness. Therefore, European and American pharmaceutical companies are inseparable from China's low-cost and high-efficiency CXO production capacity, and global capacity demand will continue to shift to China.
Take WuXi Biologics, which has plummeted in the past few days, international giants such as Goldman Sachs, Damo, and UBS are still actively optimistic. Goldman Sachs said in its latest research report that it maintained WuXi Biologics' "buy" rating with a target price of HK$178.6. Compared with WuXi Biologics' closing price of HK$58.3 on February 10, this price has an upside of 206.35%.
Da Mo believes that after the recent sell-off of WuXi Biologics' stock price, it believes that its value has emerged, and believes that the stock price correction provides a good opportunity for absorption. Give an "overweight" rating and give a target price of HK$175. Damo even said that it believes that WuXi Biologics' stock price will rise in the next 60 days, and the expected probability of occurrence is between 70% and 80%.
Also optimistic about WuXi Biology are Nomura, UBS, Xiaomo and so on. Among them, Nomura maintained a "buy" rating and gave a target price of HK$149.92; UBS continued to maintain a "buy" rating and gave a target price of HK$142; and Xiaomo also reiterated its "overweight" rating of WuXi Biologics and gave a target price of HK$112.
Of course, some institutions have downgraded the rating of WuXi Biologics. Daiwa Securities said that due to the uncertainty of WuXi Biologics' business in the United States, it downgraded the company's rating from "buy" to "outperform the market", and the target price was reduced by 55% from HK$167 to HK$75. Credit Suisse, on the other hand, lowered WuXi Biologics' price target by 20.5% to HK$120.
For investors' information only and does not constitute investment advice
