HK Stock Market Move | Joinn Laboratories (06127) surges by over 11% again. Experimental monkeys are facing price increases and shortages. The prospects of Safety Evaluation CRO are expected to improve marginally.

Joinn Laboratories (06127) surged over 11%, reaching 11.42% at the time of publication, with a price of 19.8 Hong Kong dollars and a turnover of 1.29 billion Hong Kong dollars. On the news front, in early December, the price of cynomolgus monkeys quietly surpassed the 100,000 yuan mark. According to investigations by Red Star Capital Bureau, several cynomolgus monkey breeding enterprises in Guangdong, Guangxi, Yunnan, and other regions have reported a shortage of supply, with prices increasing to 120,000-130,000 yuan. Some monkey farms have indicated that monkeys for the first half of next year have already been booked. Huatai's previous research report pointed out that with the widening gap between supply and demand, monkey prices may gradually enter a new cycle of increase (reaching as high as 150,000-200,000 yuan per monkey in 2022). Huatai believes that Joinn Laboratories is a leader in the domestic non-clinical safety evaluation field, continuously improving market influence both domestically and internationally with its strong service capabilities. After experiencing high growth in performance from 2018 to 2022 and facing pressure to adjust order volume and prices from 2023 to 2025, negative factors are gradually dissipating, and the company is expected to enter a new growth phase from 2026 driven by the recovery of the domestic market (with the wave of BD going global and an increase in IND numbers) and offshore outsourcing. The rising prices of experimental monkeys and a rebound in new contracts could be the main catalysts for future growth. Founder's suggestion is to focus on stable performance and improving orders, with prospects for the safety assessment CRO sector to reach a turning point next year.