Zhi Tong Cai Jing·2025-12-17 01:52Core Viewpoint - The stock of Zhaoyan New Drug (603127) has increased by over 8%, reaching HKD 22.14, driven by rising demand for experimental monkeys used in preclinical safety evaluations [1] Group 1: Market Dynamics - The price of experimental monkeys has been on an accelerating upward trend, currently around RMB 140,000 per monkey as of December 9, 2025 [1] - Demand for experimental monkeys is expected to rise due to a steady recovery in preclinical CRO orders, while supply-side expansion faces short-term challenges [1] - Some monkey breeding facilities have reported that their production capacity is already booked until Q1 2026, indicating a tight supply-demand balance that may lead to further price increases in the short term [1] Group 2: Company Insights - Zhaoyan New Drug is positioned to benefit from the industry's recovery and the fair value gains from monkey prices, given its rich strategic resource reserves [1] - Assuming an average price of RMB 84,900 per monkey in 2024 and an increase to RMB 140,000 by Q4 2025, the estimated new fair value for Zhaoyan New Drug in 2025 could reach approximately RMB 220 million, based on a known quantity of 23,200 monkeys [1]