Brokerage Morning Meeting Highlights | The CXO Sector Beta is Stable and Improving, AI Drug Development Has Great Potential

Yesterday, the market experienced a volatile rebound, with the three major indices opening lower but closing higher. The STAR Market 50 Index surged nearly 5%. Market volume significantly increased, with transaction amounts in the Shanghai and Shenzhen stock exchanges reaching 2.66 trillion yuan. From a sector perspective, concepts related to intelligent driving, AI applications, computing power leasing, the semiconductor industry chain, precious metals, and computing hardware performed actively. In contrast, the oil and gas sector showed weaker performance. By the close, the Shanghai Composite Index rose 1.47%, the Shenzhen Component Index rose 1.86%, the ChiNext Index rose 1.32%, and the STAR Market 50 Index increased by 4.78%. China Securities Co., Ltd. believes that the CXO sector's Beta is stabilizing and improving, and AI pharmaceuticals hold great potential; Sinolink believes the Middle East conflict is expected to gradually ease; CICC believes that global fusion industry resonance is revealing opportunities within the industrial chain. China Securities Co., Ltd.: The CXO sector's Beta is stabilizing and improving; AI pharmaceuticals hold great potential. After experiencing an adjustment phase from 2022 to 2024, the domestic CXO industry is benefiting from an early recovery in overseas investment and financing. Leading domestic CXO companies are showing signs of recovery in overseas orders in 2024. As domestic innovative drug assets achieve large-scale external authorization in 2025, this will drive domestic investment and financing to continue recovering through the second half of 2025, with demand within the industry also stabilizing and rebounding. Since 2026, long-term structural opportunities in the domestic innovative drug industry have been continuously realized, and investment and financing conditions have been improving. The competition for new drug forms continues to be vibrant and further expands, with new signed orders and performance in the domestic CRO/CDMO industry accelerating growth in 2026, leading the CXO industrial chain into a new development phase. Sinolink: The Middle East conflict is expected to gradually ease. With Trump sending another crucial TACO signal last weekend, the current struggle for control over the Strait of Hormuz is expected to enter its final stages. In the short term, if the situation stabilizes and oil prices decrease, the Federal Reserve will have a chance to avoid interest rate hikes in September; in the long run, arrangements regarding the strait could become a landmark historical event, triggering a series of geopolitical reactions. CICC: Global fusion industry resonance gradually reveals opportunities within the industrial chain. Global investment in nuclear fusion is rapidly increasing, with various fusion projects in the US and China progressing towards commercialization. This article highlights the situation and progress of mainstream nuclear fusion projects globally. Additionally, financing activities in the nuclear fusion sector are lively, with companies related to the industrial chain actively promoting fusion business. It is recommended to keep a close eye on the project progress and financing developments of downstream nuclear fusion commercial companies and the investment opportunities arising from project bidding in the upper and middle reaches of the industrial chain. This article is reproduced from "Cailian Press," edited by Jiang Yuanhua.