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JOINN Laboratories (China) Co., Ltd. Class H (HK:6127)
:6127
Hong Kong Market

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

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HK:6127

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

(6127)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
HK$28.00
▲(32.58% Upside)
The score is driven primarily by mixed financial performance: an exceptionally strong, low-debt balance sheet is offset by 2024’s sharp margin compression and weaker cash flow. Technicals are supportive with an established uptrend but show signs of being overextended. Valuation is the main headwind due to a very high P/E despite the recent earnings and cash-conversion step-down, partially cushioned by a high dividend yield.
Positive Factors
Very low leverage / strong balance sheet
Extremely low leverage and a large equity cushion provide durable financial flexibility. This allows the company to fund R&D, withstand revenue shocks, maintain dividends or pursue strategic M&A without needing immediate external financing, supporting resilience over the next 2–6 months.
Long-term revenue scaling (2019–2023)
A multi-year history of top-line scaling signals structural demand for the company’s diagnostics offerings and distribution reach. Even with a recent slip, the prior growth track record supports higher baseline market penetration and recovery potential versus peers lacking this history.
Positive operating and free cash flow
Maintaining positive operating and free cash flow, despite declines, preserves the firm’s ability to service obligations, fund working capital and continue shareholder distributions. Positive cash conversion reduces short-term refinancing and liquidity risk compared with cash-burning peers.
Negative Factors
Sharp margin compression in 2024
A sudden and large deterioration in gross and net margins materially weakens long-term earnings power. If driven by structural cost increases or pricing pressure, sustained margin erosion will impair return on capital, reduce reinvestment capacity and limit dividend sustainability.
Marked weakening in cash conversion
A severe drop in operating and free cash flow cuts internal funding for capex, R&D and dividends. If cash conversion remains depressed, the company may need to slow investments or seek external capital, reducing strategic optionality and increasing vulnerability to prolonged operational weakness.
Revenue decline signaling demand slowdown
A reversal from prior multi-year growth to declining sales indicates weakening end-market demand or competitive share loss. Persistent top-line contraction undermines operating leverage, makes margin recovery harder, and raises risk that structural growth assumptions no longer hold.

JOINN Laboratories (China) Co., Ltd. Class H (6127) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionJoinn Laboratories(China)Co.,Ltd. provides preclinical and non-clinical services in the United States, the People's Republic of China, and internationally. It operates through three segments: Non-Clinical Studies Services; Clinical Trial and Related Services; and Sales of Research Models. The Non-Clinical Studies Services segment offers drug safety assessment, drug metabolism and pharmacokinetics studies, and pharmacology and efficacy studies. The Clinical Trial and Related Services segment provides clinical CRO services, co-managed phase I clinical research units, and bioanalytical services. The Sales of Research Models segment designs, produces, breeds, and sells research models, non-human primates, and rodents. The company also offers investment management and cell-based assay (CBA) services. Joinn Laboratories(China)Co.,Ltd. was founded in 1995 and is headquartered in Beijing, China.
How the Company Makes MoneyJOINN 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
Strong balance sheet strength (very low leverage) supports resilience, but 2024 showed clear operational weakening: revenue declined, gross and net margins compressed sharply, and cash generation (operating and free cash flow) fell materially, reducing confidence in near-term earnings power.
Income Statement
54
Neutral
Revenue has scaled strongly over the longer term (2019–2023) but slipped in 2024 (-5%), signaling a near-term demand slowdown. Profitability deteriorated sharply in 2024: gross margin fell to ~28% (from ~43% in 2023) and net margin dropped to ~3.7% (from ~16.7%), indicating significant cost pressure and weaker operating leverage. While the business remains profitable, the recent compression in margins and earnings reduces confidence in the current earnings power versus prior years.
Balance Sheet
90
Very Positive
The balance sheet is very conservatively positioned with extremely low leverage (debt-to-equity ~0.3% in 2024, also very low historically). Equity is large relative to assets, providing a substantial cushion and financial flexibility. The key weakness is declining profitability on equity (return on equity down to ~0.9% in 2024 from ~4.8% in 2023 and higher earlier), which suggests the capital base is currently under-earning despite the strong capitalization.
Cash Flow
46
Neutral
Cash generation weakened materially in 2024: operating cash flow fell to ~339M (from ~623M in 2023) and free cash flow dropped to ~70M (down ~64% year over year). Free cash flow covered only ~21% of net income in 2024 (down from ~69% in 2023), pointing to reduced cash conversion. Positively, the company still produced positive operating and free cash flow, but the magnitude and trend have weakened meaningfully versus the prior two years.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.67B2.02B2.38B2.27B1.52B1.08B
Gross Profit419.13M573.77M1.01B1.09B739.12M552.81M
EBITDA275.25M234.36M639.52M1.36B738.86M422.06M
Net Income225.08M74.08M396.99M1.07B557.46M315.01M
Balance Sheet
Total Assets9.53B9.40B10.03B10.36B8.54B2.11B
Cash, Cash Equivalents and Short-Term Investments2.48B2.36B4.77B3.33B4.84B547.59M
Total Debt31.53M21.60M41.92M87.71M95.32M24.46M
Total Liabilities1.41B1.32B1.75B2.17B1.39B883.66M
Stockholders Equity8.12B8.08B8.28B8.18B7.14B1.22B
Cash Flow
Free Cash Flow253.15M69.54M430.15M696.23M448.41M279.41M
Operating Cash Flow310.14M338.93M622.88M971.07M685.66M428.39M
Investing Cash Flow-311.94M-1.96B
Financing Cash Flow-57.31M-265.63M-361.68M5.29B

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

Technical Analysis Sentiment
Positive
Last Price21.12
Price Trends
50DMA
19.97
Positive
100DMA
20.81
Positive
200DMA
18.41
Positive
Market Momentum
MACD
1.72
Negative
RSI
65.81
Neutral
STOCH
79.80
Neutral
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 21.12 is below the 20-day moving average (MA) of 23.00, above the 50-day MA of 19.97, and above the 200-day MA of 18.41, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$28.99B50.1624.57%0.63%13.58%24.59%
69
Neutral
HK$342.85B21.6425.65%1.84%11.55%64.46%
64
Neutral
HK$53.94B68.182.72%0.80%-3.81%-34.76%
61
Neutral
HK$32.68B78.272.74%0.15%-21.76%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
41
Neutral
HK$5.09B-7.50-53.23%29639.67%23.30%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6127
JOINN Laboratories (China) Co., Ltd. Class H
25.68
17.41
210.52%
HK:3347
Hangzhou Tigermed Consulting Co., Ltd. Class H
53.30
24.53
85.28%
HK:2276
Shanghai Conant Optical Co. Ltd. Class H
60.40
35.82
145.73%
HK:2359
WuXi AppTec Co., Ltd. Class H
121.00
66.77
123.12%
HK:1541
ImmuneOnco Biopharmaceuticals (Shanghai) Inc Class H
6.23
1.08
20.97%

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

JOINN Laboratories Details 2026 Caps for Connected R&D and BioAI Service Deals
Jan 12, 2026

JOINN Laboratories (China) Co., Ltd. has issued a supplemental announcement detailing how it set the 2026 annual cap of RMB47 million for continuing connected transactions with Staidson under their research and development service framework agreement. The cap reflects anticipated non-clinical and clinical projects in 2026, historical transaction levels, labor and equipment costs, and JOINN’s capacity, with expected payments including both new 2026 projects and ongoing work from previous years; the size of these connected transactions triggers disclosure and annual review requirements under Hong Kong Listing Rules but does not require independent shareholders’ approval. The company also clarified the basis for a RMB16.5 million annual cap for 2026 services to be procured from BioAI, covering software development, automation, system integration, and digital/intelligent operations technical services, which is informed by JOINN’s expected project demand and BioAI’s service cost structure, underscoring increasing investment in digitalization alongside continued collaboration with related parties.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$28.00 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Approves Key Governance Changes at EGM
Dec 5, 2025

JOINN Laboratories (China) Co., Ltd. held its second extraordinary general meeting on December 5, 2025, where several key resolutions were approved. These included amendments to the Articles of Association, the dissolution of the supervisory committee, and the election of an employee director. The meeting saw participation from a significant number of shareholders, and the resolutions were passed with overwhelming support, indicating a strategic shift in the company’s governance structure.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Announces Board Composition and Roles
Dec 5, 2025

JOINN Laboratories has announced the composition of its board of directors and their respective roles within various committees. This update reflects the company’s commitment to structured governance and strategic oversight, which may enhance its operational efficiency and strengthen its position in the competitive pharmaceutical and biotechnology sector.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Renews Lease Agreement with Biorichland
Dec 5, 2025

JOINN Laboratories (China) Co., Ltd. has announced the renewal of its lease agreement with Biorichland for a property in northern California, extending the lease term to December 31, 2028. This transaction is classified as a connected transaction under Hong Kong Listing Rules, involving substantial shareholders and connected persons, and will be treated as an asset acquisition under IFRS 16.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Secures Key Framework Agreements for 2026
Dec 5, 2025

JOINN Laboratories has entered into two significant agreements: the 2026 Staidson Research and Development Service Framework Agreement and the 2026 BioAI Service Framework Agreement. These agreements, effective from January 1, 2026, to December 31, 2026, involve continuing connected transactions with Staidson and BioAI, both associated with the company’s controlling shareholders. The transactions are subject to reporting and annual review requirements under the Listing Rules, indicating a strategic move to strengthen its service offerings and maintain compliance with regulatory standards.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Announces Key Governance Changes and Director Elections
Nov 14, 2025

JOINN Laboratories (China) Co., Ltd. has announced an Extraordinary General Meeting to be held on December 5, 2025, where shareholders will vote on several significant amendments to the company’s Articles of Association and corporate governance policies. Key proposals include the abolishment of the supervisory committee and updates to various management policies, indicating a strategic shift in governance and operational oversight. Additionally, the meeting will involve the election of new executive directors, which could impact the company’s leadership dynamics and future strategic direction.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Revises Annual Caps for Property Service Agreements
Oct 30, 2025

JOINN Laboratories has announced a revision of annual caps for its 2024 Property Service Agreements with Beijing Joinn Biologics, reflecting an increase in transaction amounts due to rising demand for electricity and heating. The revised caps, set at RMB6 million for 2025 and RMB6.5 million for 2026, indicate a strategic adjustment to accommodate the company’s growing business needs, impacting its financial planning and compliance with Hong Kong’s Listing Rules.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Reports Significant Decline in Q3 2025 Financials
Oct 30, 2025

JOINN Laboratories (China) Co., Ltd. has released its third quarterly report for 2025, revealing a significant decline in revenue and profits compared to the previous year. Despite a 34.87% decrease in revenue and an 81.85% drop in profits before income tax, the company reported a positive net cash flow from operating activities, indicating some operational resilience. The report highlights the challenges faced by the company in maintaining profitability, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Announces Governance Amendments Ahead of Legal Changes
Oct 30, 2025

JOINN Laboratories (China) Co., Ltd. has announced proposed amendments to its Articles of Association and the rules of procedures for its general meeting of shareholders. These changes are in response to the upcoming amendments to the Company Law of the People’s Republic of China, effective from July 1, 2024. The key amendments include altering the number of directors on the board and removing the supervisory committee, aligning with legal and regulatory updates. These changes are expected to impact the company’s governance structure and could influence its operational efficiency and compliance with new legal standards.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Announces Board Re-election Plans
Oct 30, 2025

JOINN Laboratories (China) Co., Ltd. has announced the proposed election of a new session of its board of directors as the current term is set to expire. All current board members have expressed their intention to stand for re-election at the upcoming extraordinary general meeting in 2025. This move is in line with the company’s governance practices and aims to ensure continuity in leadership. The re-elected directors will serve a three-year term, and their remuneration details will be disclosed in the company’s annual report.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Strengthens Governance with Enhanced Audit Committee Framework
Oct 30, 2025

JOINN Laboratories (China) Co., Ltd. has established a structured framework for its Audit Committee to enhance corporate governance and ensure compliance with relevant laws and regulations. The committee, composed of non-executive directors, is tasked with overseeing the company’s financial reporting, internal controls, and audit processes, thereby strengthening the company’s operational integrity and accountability.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Enhances Governance with New Nomination Committee
Oct 30, 2025

JOINN Laboratories (China) Co., Ltd. has established a Nomination Committee under its Board of Directors to enhance its governance structure. This committee is tasked with selecting and recommending candidates for directors and senior management positions, ensuring a balanced and diverse board composition, and formulating selection criteria and procedures. This move is aimed at optimizing the board’s composition and improving the company’s governance, potentially impacting its operational efficiency and strategic decision-making.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Enhances Governance with New Remuneration Committee
Oct 30, 2025

JOINN Laboratories (China) Co., Ltd. has established a Remuneration and Evaluation Committee to enhance its governance structure by managing remuneration and evaluation for its directors and senior management. This committee is tasked with formulating assessment standards, reviewing remuneration policies, and ensuring transparent procedures for developing remuneration strategies, which could strengthen the company’s operational efficiency and align management incentives with corporate goals.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories Forms Strategic Development Committee to Boost Competitiveness
Oct 30, 2025

JOINN Laboratories has established a Strategic Development Committee under its Board of Directors to enhance its strategic development and investment decision-making processes. This initiative aims to improve the company’s core competitiveness and governance structure by focusing on long-term development strategies and major investment decisions, which are expected to positively impact its operations and industry positioning.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$16.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

JOINN Laboratories to Review Third Quarter Results
Oct 17, 2025

JOINN Laboratories (China) Co., Ltd. has announced that its board of directors will meet on 30 October 2025 to consider and approve the company’s third quarterly results for the nine months ending 30 September 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:6127) stock is a Hold with a HK$14.30 price target. To see the full list of analyst forecasts on JOINN Laboratories (China) Co., Ltd. Class H stock, see the HK:6127 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 10, 2026