CXO leaders lead the way, Hong Kong Stock Connect Medical ETF and Medical ETF strongly resist declines! After Kylin's earnings, AH shares soared wildly, institutions: CXO is expected to become a pioneer in the medical market turnaround

On March 31, the broader market experienced another correction, with the AH Medical sector showing strong resilience against declines. The representative medical ETFs (512170) and the Hong Kong Stock Connect Medical ETF Huabao (159137) rose over 2% early in the trading session. Although they declined with the market in the afternoon, both closed above the waterline, with 159137 closing higher.

CXO concept stocks performed counter to the trend, providing strong support. Kelai Ying’s AH shares remained strong throughout the day, hitting the daily limit in A-shares, and rose 13.54% in Hong Kong stocks despite the overall market decline! Last night, Kelai Ying released its 2025 annual report, showing double-digit year-over-year growth in revenue and net profit, with net profit attributable to shareholders reaching 1.13B yuan, up 19.35% year-over-year.

The same day, Zhaoyan New Drug announced its earnings, surging initially but then pulling back. Its A-shares hit the daily limit early, closing up 6.54%, while Hong Kong stocks soared over 15% at the open, but closed up only 0.67%. In 2025, the company is projected to achieve a net profit attributable to shareholders of 298 million yuan, a threefold increase year-over-year, though revenue declined nearly 18% compared to the previous year.

Public data shows that the Medical ETF (512170) covers 8 leading CXO stocks in A-shares, with a total weight of 25%. Six of these have disclosed annual reports, with only Kanglong Chemical experiencing a single-digit decline in net profit year-over-year. Zhaoyan New Drug, Tigermed, and WuXi AppTec all expect net profit growth exceeding 100% in 2025.

The Hong Kong Stock Connect Medical ETF Huabao (159137) covers 9 leading CXO stocks in Hong Kong, with a combined weight of 42%. All have disclosed annual reports, with 7 showing double-digit or higher growth in net profit, and 4 exceeding 100% growth. Jing Tai Holdings’ revenue and net profit are expected to double in 2025, with revenue growth reaching 201%!

Xiangcai Securities pointed out that the CXO industry is experiencing a strong recovery characterized by “leading companies outperforming and structural differentiation.” Driven by stable global outsourcing demand and blockbuster drugs like GLP-1, the CXO sector is expected to become a pioneer in the sector’s reversal. However, internal industry differentiation is intensifying, with resources and orders likely to concentrate increasingly in large leading companies, forming a pattern of “CDMO outperforming CRO, large firms outperforming small and medium-sized enterprises.”

Data sources include the Shanghai and Shenzhen stock exchanges, China Securities Index Co., Ltd., and others. The CXO weight ratio data mentioned in the article is as of March 30, 2026. Institutional views are from Xiangcai Securities’ March 28, 2026, “Medical Service Industry Weekly: CXO Leaders Lead, GLP-1 and ADC Demand Booming.”

Note: The ETFs mentioned in the article do not charge sales service fees. Fund fee rates are detailed in each fund’s legal documents. Risk warning: The index component stocks listed are for display purposes only. Stock descriptions are not investment advice in any form and do not represent holdings or trading trends of any funds managed by the manager. The composition of the underlying index is adjusted periodically according to the index’s rules. The risk levels of the Medical ETF linked funds and Hong Kong Stock Connect Medical ETF Huabao are rated R4—medium-high risk, suitable for aggressive (C4) and above investors. The risk level of the Medical ETF itself is R3—medium risk, suitable for balanced (C3) and above investors. All information (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any other statements) is for reference only. Investors are responsible for their own investment decisions. The opinions, analyses, and forecasts in this article do not constitute investment advice and do not hold the author or publisher responsible for any direct or indirect losses resulting from the use of this content. Investment in funds involves risks; past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of any specific fund. Please invest cautiously.

MACD Golden Cross signals formed, and these stocks are on a good upward trend!