To The Moon

JOINN (06127) rose more than 4% again. As of the time of writing, the stock was up 3.36%, trading at HK$24, with a turnover of HK$108 million. On the news front, media reports indicate that the price of 3-5 year old cynomolgus monkeys has now risen to RMB 140,000 per monkey, and a situation of demand outstripping supply has emerged within the year. Changjiang Securities released a research report stating that currently, the supply of laboratory monkeys is continuously decreasing, while demand is stabilizing and rebounding. Furthermore, new technologies such as small nucleic acids and CAR-T, which largely require the use of laboratory monkeys, are driving a structural increase in their share of usage. The supply-demand gap for laboratory monkeys may be widening, and monkey prices have also begun to show an upward trend. The report pointed out that JOINN possesses high-quality, scarce laboratory monkey resources. On one hand, its monkey farm supplies a certain number of laboratory monkeys annually for the company's own use, contributing a stable profit base. On the other hand, against the backdrop of increasingly tight laboratory monkey supply, controlling high-quality monkey resources may grant the company stronger bargaining power, potentially leading to an improved contract win rate and even allowing it to command a premium on service fees.