On July 16, Joinn Laboratories (06127.HK) rose 7.06% in regular trading, trading at HKD 27.06/share with turnover of HKD 507 million, extending its strong momentum from prior sessions.

The rally continues to be driven by the company's H1 earnings forecast disclosed on July 14, projecting attributable net profit of RMB 600 million to RMB 900 million, representing a year-over-year increase of approximately 885% to 1,377%. Adjusted net profit is expected to surge 2,334% to 3,551%. However, revenue growth remains modest at 0% to 10.5%, reaching RMB 669 million to RMB 739 million.

The dramatic profit expansion is primarily attributed to rising market prices of experimental monkeys — now reportedly reaching RMB 200,000 per animal — combined with natural growth appreciation of biological assets, driving significant positive fair value changes. Meanwhile, laboratory service margins remain under pressure from prior intense industry competition.

The broader CRO sector is experiencing an order recovery cycle, with leading firms reporting substantial new order growth in Q1. The CRO index has rebounded 21.72% since early June, supported by improving global biopharma financing and rising demand for preclinical services.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)