Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Macroeconomics

<ul><li>The HSI opened up 210 pts before extending gains, once rising 434 pts to a peak of 24,774.</li><li>The index closed at 24,681, up 340 pts or 1.4%, tracking Wall Street higher after softer-than-expected US inflation data eased concerns over near-term Federal Reserve interest rate hikes.</li><li>GDP growth slowed to 4.3% year-on-year in the second quarter from 5.0% in Q1, missing market expectations of 4.5%.</li></ul>

The HSI opened up 210 pts before extending gains, once rising 434 pts to a peak of 24,774.The index closed at 24,681, up 340 pts or 1.4%, tracking Wall Street higher after softer-than-expected US inflation data eased concerns over near-term Federal Reserve interest rate hikes.GDP growth slowed to 4.3% year-on-year in the second quarter from 5.0% in Q1, missing market expectations of 4.5%.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Joinn reported 1H24 revenue of RMB849mn, down 16.1% YoY, and recorded attributable recurring net loss of RMB198mn.</li><li>The 1H24 revenue accounted for 36.5% of our full-year estimate, largely in line with its historical level.</li><li>The bottom line was significantly affected by the RMB235mn fair value losses from biological assets, a non-operational, non-cash charge. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn reported 1H24 revenue of RMB849mn, down 16.1% YoY, and recorded attributable recurring net loss of RMB198mn.The 1H24 revenue accounted for 36.5% of our full-year estimate, largely in line with its historical level.The bottom line was significantly affected by the RMB235mn fair value losses from biological assets, a non-operational, non-cash charge. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn Laboratories (6127 HK) - Signals of Demand Recovery in 2Q24

<ul><li>Joinn reported 1Q24 revenue of RMB325mn, down 12.1% YoY, and booked attributable net loss of RMB272mn, a significant downturn from an attributable net profit of RMB188mn in 1Q23.</li><li>The 1Q24 revenue accounted for 13.4% of our full-year estimate, in line with its historical average.</li><li>First quarter is typically a low season for Joinn. The revenue decline was due to persistently soft R&amp;D activities in China’s pharmaceutical industry, which has led to increased competition and price erosion. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn reported 1Q24 revenue of RMB325mn, down 12.1% YoY, and booked attributable net loss of RMB272mn, a significant downturn from an attributable net profit of RMB188mn in 1Q23.The 1Q24 revenue accounted for 13.4% of our full-year estimate, in line with its historical average.First quarter is typically a low season for Joinn. The revenue decline was due to persistently soft R&amp;D activities in China’s pharmaceutical industry, which has led to increased competition and price erosion. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn Laboratories (6127 HK) - Waiting longer for recovery to materialize

<ul><li>Joinn reported 2023 revenue of RMB2,376mn, up 4.8% YoY, and attributable net income of RMB338mn, down 66.9% YoY.</li><li>The decelerated revenue growth was due to subdued R&amp;D activities in Chinese pharmaceutical industry, leading to heightened competition and lower pricing.</li><li>The decline of attributable net income was primarily due to the RMB267mn fair value losses from biological assets, a non-operational, non-cash charge. Joinn’s laboratory services (its core business) recorded a net profit of RMB473mn in 2023, down 17.9% YoY, which can better reflect the profitability of its core business. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn reported 2023 revenue of RMB2,376mn, up 4.8% YoY, and attributable net income of RMB338mn, down 66.9% YoY.The decelerated revenue growth was due to subdued R&amp;D activities in Chinese pharmaceutical industry, leading to heightened competition and lower pricing.The decline of attributable net income was primarily due to the RMB267mn fair value losses from biological assets, a non-operational, non-cash charge. Joinn’s laboratory services (its core business) recorded a net profit of RMB473mn in 2023, down 17.9% YoY, which can better reflect the profitability of its core business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn Laboratories (6127 HK) - Recovery Could Be Not Earlier than 1H24

<ul>
<li>Joinn reported 3Q23 revenue of RMB575mn, up 15.1% YoY, and attributable net income of RMB237mn, down 9.2% YoY.</li>
<li>3Q23 revenue accounted for 20.7% of our full-year estimate, in-line with its historical average, while attributable net income represented 57.5% of our full-year estimate, substantially higher than the historical average which was primarily due to RMB82mn fair value gain from biological assets in 3Q23 compared with RMB183mn fair value loss in 1H23.</li>
<li>Specifically, Joinn’s laboratory services (core business) recorded a net profit of RMB114mn in 3Q23, slightly down 2.9% YoY, while the net profit of lab services in 9M23 maintained YoY growth of 16.0%.</li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Joinn reported 3Q23 revenue of RMB575mn, up 15.1% YoY, and attributable net income of RMB237mn, down 9.2% YoY.
3Q23 revenue accounted for 20.7% of our full-year estimate, in-line with its historical average, while attributable net income represented 57.5% of our full-year estimate, substantially higher than the historical average which was primarily due to RMB82mn fair value gain from biological assets in 3Q23 compared with RMB183mn fair value loss in 1H23.
Specifically, Joinn’s laboratory services (core business) recorded a net profit of RMB114mn in 3Q23, slightly down 2.9% YoY, while the net profit of lab services in 9M23 maintained YoY growth of 16.0%.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Joinn Laboratories (6127 HK) – Wait longer for recovery

China

JOINN Laboratories is a specialized drug development outsourcing company (CRO) that provides non-clinical pharmacology and toxicology research and evaluation services, including drug safety assessment, pharmacodynamic, and pharmacokinetic studies. The company also offers clinical trial services and the production and sale of experimental models. Headquartered in Beijing, China, it was founded in 1995.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

JOINN Laboratories (6127 HK)

Quam Morning Note (16 Jul)

The HSI opened up 210 pts before extending gains, once rising 434 pts to a peak of 24,774. The index closed at 24,681, up 340 pts or 1.4%,...

Quam Securities