<div id="readability-page-1"><div>G Sachs published a research report on the mainland pharmaceutical sector, stating that the results of CDMO companies reflect that the sectors cycle remains resilient. Earnings visibility is increasingly dependent on exposure to late-stage and commercialization projects rather than early-stage financing conditions. Artificial intelligence has not caused structural disruption to order volume, order backlog quality, or pricing.In contrast, the results of medical device and healthcare service companies indicate uneven recovery progress among different names. Although most headwinds from volume-based procurement (VBP) and medical insurance payment reforms (DRG/DIP) appear to have been digested, differences remain in sales recovery, pricing power, and earnings visibility.In terms of stocks, the bank holds a more positive view on names rated Buy, including Wuxi AppTec (02359.HK) +1.400 (+1.132%) Short selling $159.69M; Ratio 46.325% , Asymchem (06821.HK) +4.800 (+4.829%) Short selling $2.85M; Ratio 4.374% , MicroPort Robotics (02252.HK) -1.000 (-3.086%) Short selling $6.80M; Ratio 8.736% , and Jupiter Medical (02675.HK) -0.200 (-0.378%) . In addition, the bank upgraded AK Medical (01789.HK) -0.070 (-1.023%) Short selling $2.49M; Ratio 23.510% to Buy, reflecting a restart in execution, margin improvement, and clearer mid-term visibility. It also upgraded MicroTech Medical (02235.HK) -0.030 (-0.385%) to Neutral, as the impact of domestic competition was better than expected and the company is progressing toward its 2026 guidance in an orderly manner.On the other hand, the bank remains cautious on Weigao Group (01066.HK) -0.120 (-3.226%) Short selling $12.25M; Ratio 24.499% and Topchoice Medical (600763.SH) -0.550 (-1.272%) , downgrading them to Neutral and Sell, respectively. The former is pressured by ongoing VBP-related margin pressure and weak short-term growth, while the latter has seen accelerating revenue recovery but remains uncertain, with limited upside potential. (ss/j)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-27 12:25.) (A Shares quote is delayed for at least 15 mins.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

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G Sachs' report on the mainland CDMO sector indicates resilience, with earnings visibility linked to late-stage projects. AI has not disrupted order volumes or pricing. The bank favors stocks like Wuxi AppTec and Asymchem, upgrading AK Medical and MicroTech Medical, while downgrading Weigao Group and Topchoice Medical due to margin pressures and uncertain growth. Overall, the report highlights a mixed recovery in the medical device and healthcare service sectors.

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G Sachs: Mainland CDMO Sector Remains Resilient, Favors Wuxi AppTec , Asymchem  and Others