JOINN Laboratories (China) Co., Ltd. Class H (6127) AI Stock Analysis

• Market Cap: HK$14.81B
• Dividend Yield: 1.33%
• Average Volume (3M): 9.34M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.63
• Revenue Growth: -15.92%
• EPS Growth: N/A
• Country: HK
• Employees: 2,510
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.05
• Shares Outstanding: 118,995,210
• 10 Day Avg. Volume: 9,125,179
• 30 Day Avg. Volume: 9,335,823
• PEG Ratio: 0.05
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 415.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$14.30
• Price Target Upside: -0.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ―

JOINN Laboratories' stock score reflects a balance of its stable financial position and concerns over declining profitability and cash flow metrics. The technical analysis indicates bearish trends, while the high P/E ratio suggests overvaluation. The absence of significant corporate events or earnings call data leaves the company's future outlook uncertain.

JOINN Laboratories (China) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

JOINN Laboratories (China) Co., Ltd. Class H (6127) is a leading contract research organization (CRO) in China, specializing in providing preclinical and clinical research services. The company operates primarily in the pharmaceutical and biotechnology sectors, offering a wide range of services including drug discovery, development, and regulatory submissions. With a focus on innovation and quality, JOINN Laboratories supports clients in bringing their products to market efficiently and effectively.

How the Company Makes Money

JOINN Laboratories generates revenue by offering a comprehensive suite of research and development services to pharmaceutical and biotechnology companies. The company's key revenue streams include fees for conducting preclinical trials, clinical trials, and regulatory consultancy services. By operating as a CRO, JOINN Laboratories partners with various companies to facilitate the development of new drugs and therapies, thus providing value through its expertise and infrastructure. Significant factors contributing to its earnings include strong client relationships, a robust portfolio of service offerings, and its ability to adapt to the evolving needs of the healthcare industry.

JOINN Laboratories (China) Co., Ltd. Class H Financial Statement Overview

Summary

JOINN Laboratories exhibits a stable financial structure with low leverage and strong equity. However, profitability and cash flow metrics have weakened. The company faces challenges in revenue growth and profitability, which pose risks to financial performance. Future strategies should aim to enhance revenue and cash flow generation to sustain long-term growth.

Income Statement

JOINN Laboratories demonstrates a mixed performance in its income statement. Gross profit margin is strong, indicating effective cost management, with a calculated rate of approximately 28.4% for 2023. However, net profit margin has decreased to about 3.7% from 16.7% in 2022, reflecting a significant drop in profitability. Revenue growth has been inconsistent, showing a decline of 15.1% from 2022 to 2023. The EBIT and EBITDA margins have also declined over the same period, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet of JOINN Laboratories is robust, highlighted by a strong equity ratio of 80.6% in 2023, suggesting low financial risk. The debt-to-equity ratio is exceptionally low at 0.005, which signifies minimal leverage and strong financial health. Return on equity has decreased to 4.8% from 13.1% in 2022, indicating reduced profitability relative to shareholders' equity. Overall, the company maintains a solid asset base with significant stockholders' equity.

Cash Flow

Cash flow metrics present a mixed picture. Free cash flow has dropped significantly by approximately 83.8%, reflecting a potential strain on liquidity, while the operating cash flow to net income ratio is favorable at 0.85, indicating efficient cash conversion. The free cash flow to net income ratio is notably low at 0.18 for 2023, suggesting that less cash is being generated relative to net income, which may affect future investment capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.98B	2.02B	2.38B	2.27B	1.52B	1.08B
	Gross Profit
504.11M	573.77M	1.01B	1.09B	739.12M	552.81M
	EBIT
446.74M	104.35M	507.10M	1.23B	642.89M	361.12M
	EBITDA
448.87M	234.36M	639.52M	1.36B	712.94M	422.06M
	Net Income Common Stockholders
387.42M	74.08M	396.99M	1.07B	557.46M	315.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.31B	2.36B	4.77B	3.33B	4.84B	547.59M
	Total Assets
9.73B	9.40B	10.03B	10.36B	8.54B	2.11B
	Total Debt
63.50M	21.60M	41.92M	87.71M	95.32M	24.46M
	Net Debt
-2.80B	―	-2.82B	-2.83B	-4.06B	-284.23M
	Total Liabilities
1.74B	1.32B	1.75B	2.17B	1.39B	883.66M
	Stockholders Equity
7.99B	8.08B	8.28B	8.18B	7.14B	1.22B
Cash Flow		Free Cash Flow
83.57M	69.54M	430.15M	696.23M	448.41M	279.41M
	Operating Cash Flow
37.76M	338.93M	622.88M	971.07M	685.66M	428.39M
	Investing Cash Flow
-678.11M	―	―	―	―	―
	Financing Cash Flow
-86.12M	―	-361.68M	―	5.29B	―

JOINN Laboratories (China) Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6127, the sentiment is Positive. The current price of 14.42 is above the 20-day moving average (MA) of 14.39, above the 50-day MA of 11.86, and above the 200-day MA of 10.53, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 12.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6127.

JOINN Laboratories (China) Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1093	76 Outperform	$87.51B	19.03	13.20%	2.63%	-9.60%	-27.18%
2269	74 Outperform	$98.06B	27.18	8.17%	―	7.52%	-1.92%
1513	74 Outperform	HK$32.85B	11.87	14.56%	4.08%	-5.37%	6.28%
1177	66 Neutral	$86.74B	45.71	6.14%	12.95%	7.63%	-24.23%
3320	62 Neutral	HK$31.98B	8.80		7.13%	―	―
6127	56 Neutral	HK$14.81B	25.94	4.83%	1.33%	-15.92%	―
Sector *	53 Neutral	$5.24B	3.32	-44.36%	6.63%	16.78%	-0.12%

JOINN Laboratories (China) Co., Ltd. Class H Corporate Events

JOINN Laboratories Reports Significant Profit Recovery in Q1 2025

JOINN Laboratories (China) Co., Ltd. released its first quarterly report for 2025, revealing a decrease in revenue by 11.54% compared to the same period last year. Despite this, the company reported a significant improvement in net profit attributable to shareholders, which increased by 115.11%, indicating a recovery from previous losses. The report highlights a decline in net cash flow from operating activities by 45.69%, but an increase in basic and diluted earnings per share by 113.89%. These financial results suggest a positive turnaround in profitability, although challenges in cash flow remain.

JOINN Laboratories Schedules Board Meeting to Review Q1 Results

JOINN Laboratories (China) Co., Ltd. has announced that its board of directors will convene on April 28, 2025, to review and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and market positioning.

JOINN Laboratories Expands Financial Investments with CITIC Securities

JOINN Laboratories (China) Co., Ltd. announced that it has subscribed to further financial products from CITIC Securities, with an outstanding investment amount of RMB400,000,000. This transaction is classified as a discloseable transaction under the Hong Kong Listing Rules, as the applicable percentage ratios exceed 5% but are below 25%, necessitating notification and announcement requirements. The company expects reasonable returns from these investments and confirms that this subscription will not adversely affect its financial position.

JOINN Laboratories Responds to FDA’s New Scheme on Animal Testing

JOINN Laboratories has observed unusual price movements in its shares, which may be influenced by a new FDA scheme to eliminate animal testing for monoclonal antibodies and other drugs. The company views this as an opportunity to align with industry trends towards alternative research methods, such as in vitro testing, which supports its long-term development goals and commitment to sustainable pharmaceutical research.

JOINN Laboratories Reports Significant Decline in 2024 Financial Results

JOINN Laboratories announced its audited consolidated annual results for the year ended December 31, 2024, revealing a significant decline in financial performance compared to the previous year. The company’s revenue decreased by 15.1%, gross profit fell by 48.4%, and profit for the year plummeted by 82.2%. This downturn in financial results may impact the company’s market positioning and stakeholder confidence.

JOINN Laboratories Announces Final Cash Dividend for 2024

JOINN Laboratories (China) Co., Ltd. has announced a final cash dividend of RMB 0.03 per share for the financial year ending December 31, 2024, with the payment expected by August 31, 2025. The announcement highlights the company’s commitment to returning value to shareholders, while also detailing the withholding tax implications for non-resident enterprise shareholders, reflecting the company’s adherence to regulatory tax requirements.

JOINN Laboratories Revises 2025 Annual Cap Amid Increased BioAI Demand

JOINN Laboratories has announced a revision to its 2025 Annual Cap under the BioAI Service Framework Agreement due to delays in software service deliveries and increased demand for BioAI services. This revision indicates a strategic move to enhance service efficiency and accuracy, potentially impacting the company’s operational dynamics and stakeholder engagements.

JOINN Laboratories Proposes Capital and Article Amendments

JOINN Laboratories (China) Co., Ltd. has announced a proposed change in its registered capital, reflecting the cessation of its 2021 and 2022 A Shares Employee Stock Ownership Plans. This change involves a reduction in the registered capital and a corresponding decrease in the total number of shares. Additionally, the company plans to amend its Articles of Association to reflect these changes in capital and shareholding structure. These amendments are subject to approval at the company’s 2024 annual general meeting, and the Board has been authorized to manage the necessary regulatory procedures.

JOINN Laboratories Schedules Board Meeting to Review Annual Results

JOINN Laboratories (China) Co., Ltd. has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address other business matters. This announcement is significant as it will provide insights into the company’s financial health and potential shareholder returns, impacting its market positioning and stakeholder interests.