JOINN(SH:603127) EBSCN·2025-03-31 02:47Investment Rating - The report maintains an "Accumulate" rating for the company [6] Core Views - The company reported a significant decline in revenue and net profit for 2024, with total revenue of 2.018 billion yuan (down 15.07% year-over-year) and a net profit attributable to shareholders of 74.0754 million yuan (down 81.34% year-over-year), which was below previous expectations [1][2] - Despite the overall decline, there are signs of stabilization in Q4, with a quarter-over-quarter revenue increase of 40.6% to 680 million yuan and a net profit increase of 61.4% to 137 million yuan [2] - The company signed new orders worth 1.84 billion yuan in 2024 (down 20% year-over-year), with a backlog of approximately 2.2 billion yuan (down 33% year-over-year), indicating a challenging domestic demand environment but stable overseas demand [3] Summary by Sections Financial Performance - The company experienced a significant drop in gross margin across various business segments, with non-clinical drug research services gross margin down 14.03 percentage points to 29.19%, clinical services and other business gross margin down 7.19 percentage points to 13.99%, and experimental model business gross margin down 22.61 percentage points to 13.45% [2] - The financial forecast for 2025-2026 has been revised downwards, with net profit estimates adjusted to 352 million yuan and 461 million yuan respectively, reflecting a decrease of 50.6% and 47.1% [3] Business Outlook - The company has strengthened its global customer service capabilities, having passed FDA GLP certification for its facilities in Beijing and Suzhou, which may enhance its ability to secure overseas orders [3] - The report highlights the company's position as a leader in drug safety evaluation in China, suggesting potential for recovery in performance as market conditions improve [3] Valuation Metrics - The projected P/E ratios for 2025-2027 are 45, 35, and 30 respectively, indicating a potential recovery in earnings and valuation as the market stabilizes [3]