HK Stock Market Move | Joinn Laboratories (06127) rose by more than 5%, with tight supply of experimental monkeys upstream. Changes in fair value are expected to contribute to profits.

Joinn Laboratories (06127) rose by more than 5%, as of the time of publication, it increased by 5.17% to HKD 22.38, with a trading volume of 1.16 billion Hong Kong dollars. On the news side, a research report from Sealand on December 22 pointed out that the demand for pre-clinical CRO clients is rebounding, and there is a shortage in the supply of experimental monkeys upstream. During the safety assessment phase, new technology platforms such as large molecules (multi-antibodies, ADC), small nucleic acids, peptides, and cell gene therapy all require macaque monkeys to simulate human beings for safety assessment experiments to test the safety data of drugs. Currently, macaque monkeys around 3-5 years old have risen to 140,000 yuan each. There has been a situation of supply shortage, further confirming the recovery of the domestic innovative drug development boom, and the increase in monkey prices will directly contribute to profit due to changes in fair value. Founder estimates that taking Joinn Laboratories as an example, assuming that the average price of experimental monkeys in 2024 is included in the fair value at 84,900 yuan each, and the price increases to 140,000 yuan each in the fourth quarter of 2025. Assuming a slaughter rate of 17% in the monkey farm, based on the known 23,200 monkeys, it is estimated that the additional fair value in 2025 will be approximately 220 million yuan (excluding the impact of new incoming monkeys and underage & elderly monkeys).