JOINN(SH:603127) HUAXI Securities·2025-04-01 11:22Investment Rating - The investment rating for the company has been adjusted from "Buy" to "Hold" [3][5]. Core Insights - The company is experiencing business pressure due to a slowdown in domestic investment and financing, leading to a significant decline in revenue and profit for 2024. Revenue is projected at 2.018 billion yuan, a year-on-year decrease of 15.07%, with net profit dropping by 81.34% to 74 million yuan [1][2]. - The laboratory business contributed 50 million yuan, while asset management income was 90 million yuan, and the fair value change of biological assets was -110 million yuan, indicating a substantial decline in profitability compared to the previous year [2]. - Despite the current challenges, there is an expectation of marginal improvement in domestic demand over the next three years due to ongoing government policies encouraging innovation, which may benefit the company as a key player in the domestic preclinical CRO business [2]. Financial Performance Summary - For 2024, the company is expected to generate revenue of 2.018 billion yuan, with a year-on-year decline of 15.1%. The net profit is projected at 74 million yuan, reflecting a significant drop of 81.3% [9][11]. - The gross margin is expected to decrease to 28.4% in 2024, with earnings per share (EPS) forecasted at 0.10 yuan [9][11]. - Revenue forecasts for 2025 to 2027 have been adjusted to 1.995 billion yuan, 2.043 billion yuan, and 2.166 billion yuan, respectively, with EPS estimates of 0.50 yuan, 0.48 yuan, and 0.50 yuan [3][9]. Order and Market Trends - The company signed new orders worth 1.84 billion yuan in 2024, a decline of 20% year-on-year, with domestic orders falling by 25.5% to 1.46 billion yuan, while overseas orders increased by 11.8% to 380 million yuan [2][9]. - The core preclinical research business generated 1.92 billion yuan in revenue, down 17% year-on-year, with domestic clients contributing 1.48 billion yuan and international clients 440 million yuan [2][9].