According to a research report published by J.P. Morgan Chase, China's contract R&D and production organization is entering a new stage of development, and the next stage of growth will depend more on whether suppliers can transform the pipelines promoted by customers into sustainable commercial production. The bank expanded its coverage of CDMO shares in China, covering Kanglong Chemical and Gloria Ying ratings for the first time. The bank predicts that Kanglong Chemical and Gloria Ying will have compound annual earnings per share growth rates of 24% and 25% from 2026 to 30, respectively, and faster profit growth due to scale effects. Among AH shares, the bank favors Kanglong Chemical and Gloria Ying's H shares over A shares. Among them, the target prices for Kanglong Chemical and Gloria Ying H shares were HK$38 and HK$160, respectively; the target prices for both A-shares were $50 and $170, respectively. Since A-share valuations already reflect recovery expectations, there is little room left for production capacity once growth slows down, and they each received a “neutral” rating for the first time.

According to a research report published by J.P. Morgan Chase, China's contract R&D and production organization is entering a new stage of development, and the next stage of growth will depend more on whether suppliers can transform the pipelines promoted by customers into sustainable commercial production. The bank expanded its coverage of CDMO shares in China, covering Kanglong Chemical and Gloria Ying ratings for the first time. The bank predicts that Kanglong Chemical and Gloria Ying will have compound annual earnings per share growth rates of 24% and 25% from 2026 to 30, respectively, and faster profit growth due to scale effects. Among AH shares, the bank favors Kanglong Chemical and Gloria Ying's H shares over A shares. Among them, the target prices for Kanglong Chemical and Gloria Ying H shares were HK$38 and HK$160, respectively; the target prices for both A-shares were $50 and $170, respectively. Since A-share valuations already reflect recovery expectations, there is little room left for production capacity once growth slows down, and they each received a “neutral” rating for the first time.