Core Viewpoint - The price of experimental monkeys, particularly for the 3-5 year old crab-eating macaques, has surged to 140,000 yuan each, indicating a supply-demand imbalance in the market. This trend is expected to benefit companies like Zhaoyan New Drug, which possess valuable resources in this area [1] Company Summary - Zhaoyan New Drug's stock has seen an increase of over 4%, currently trading at 24 Hong Kong dollars with a transaction volume of 108 million Hong Kong dollars [1] - The company has access to high-quality and scarce experimental monkey resources, which contribute to a stable profit base through annual sales of a certain number of monkeys for internal use [1] - In the context of tightening supply of experimental monkeys, Zhaoyan New Drug may gain stronger bargaining power, potentially leading to increased order rates and the ability to charge premium service fees [1] Industry Summary - The supply of experimental monkeys is declining while demand is stabilizing and recovering, driven by new technologies such as small nucleic acids and CAR-T, which require the use of experimental monkeys [1] - The gap between supply and demand for experimental monkeys is widening, leading to an upward trend in monkey prices [1]

Group 1 - The core viewpoint of the article highlights the rising price of experimental monkeys, particularly for the species used in research, which has reached 140,000 yuan each, indicating a supply-demand imbalance in the market [1] - Changjiang Securities reports that the supply of experimental monkeys is decreasing while demand is stabilizing and increasing, particularly due to new technologies like small nucleic acids and CAR-T that require these monkeys, leading to a widening supply-demand gap [1] - The company, Zhaoyan New Drug, possesses valuable and scarce resources of experimental monkeys, which not only contributes to a stable profit base through annual sales but also enhances its bargaining power in a tightening supply environment, potentially leading to increased order rates and service fee premiums [1]

Summary of Conference Call on Monkey Price Trends Industry Overview - The conference call discusses the domestic monkey breeding industry, particularly focusing on the demand for experimental monkeys and the factors influencing their prices [1][2]. Key Points and Arguments Demand and Supply Dynamics - There is a strong demand for experimental monkeys from domestic DL companies, leading to a significant increase in orders, particularly from November and December 2023 [2]. - The supply of monkeys is constrained due to a shortage of animal resources, resulting in a market characterized by scattered orders rather than long-term contracts [3]. - The average price of experimental monkeys is expected to stabilize between 12-13 million yuan, with potential fluctuations up to 12-16 million yuan [4][13]. Quality and Quantity of Domestic Monkey Population - The overall population of monkeys remains stable, but the quality is declining, affecting both the output quantity and quality [5]. Importation of Monkeys - Cambodia began exporting experimental monkeys to China in December 2023, with Vietnam expected to follow in 2025 and Indonesia in 2026 [6]. - Imported monkeys are primarily for breeding purposes, but some meet experimental standards and can be sold as commercial monkeys [7]. Cost of Production - The cost of producing monkeys has increased due to additional testing requirements, raising the cost by approximately 700-800 yuan per monkey [8]. Future Supply Trends - A supply gap for commercial monkeys is anticipated to persist from 2026 to 2028, particularly severe in 2026 and 2027, with improvements expected by 2029 [9]. Impact of Overseas Demand - The price of experimental monkeys in the U.S. is significantly higher than in China, influencing domestic pricing strategies. For instance, when domestic prices are below 100,000 yuan, U.S. prices are around 140,000-150,000 yuan [10]. Revenue from Non-Standard Monkeys - The increase in output for 2025 is attributed to the sale of non-standard monkeys, which do not significantly boost revenue due to their lower price points [11]. Industry Pricing Levels - The current average market price for monkeys is between 110,000 and 120,000 yuan, with the company maintaining a competitive pricing strategy [12]. Challenges in Breeding Programs - Although breeding plans exist, the actual implementation is challenging due to the strong demand for immediate returns, making it difficult to retain breeding stock [16]. Influence of Domestic Innovation - The growth of domestic innovative pharmaceuticals is driving demand for monkeys, with usage surpassing that in the U.S. and a higher number of original drugs compared to Western countries [17]. Additional Important Insights - The market is shifting towards more flexible purchasing arrangements, with clients actively seeking monkeys rather than relying on long-term contracts [3]. - The potential for exporting monkeys is limited due to regulatory constraints, as they are considered a strategic resource [14]. - The cost of imported monkeys varies based on the gender ratio and country of origin, with Cambodian imports costing around 70,000-80,000 yuan per monkey [14]. This summary encapsulates the critical insights from the conference call regarding the monkey breeding industry, highlighting the interplay between demand, supply, pricing, and the impact of domestic and international factors.

Core Viewpoint - The stock price of Zhaoyan New Drug (603127) has increased by over 7%, reaching HKD 18.56, with a trading volume of HKD 42.5682 million, driven by a surge in the price of experimental monkeys [1] Group 1: Company Overview - Zhaoyan New Drug is the largest supplier of experimental monkeys globally [1] Group 2: Market Dynamics - The price of experimental monkeys has skyrocketed, with the cost for 3-5 year old macaques reaching HKD 140,000 each, indicating a supply-demand imbalance [1] - According to estimates from Founder Securities, the supply of experimental monkeys is projected to be around 49,000 to 52,400 per year from 2025 to 2027, while demand is expected to be between 51,300 and 62,600 per year [1] - The short-term increase in demand for experimental monkeys is driven by a resurgence in new drug development, while supply-side improvements are expected to be challenging, potentially widening the supply-demand gap [1]

Core Viewpoint - The stock price of Zhaoyan New Drug (06127) has increased by over 10%, currently trading at 17.8 HKD with a transaction volume of 172 million HKD, driven by a significant rise in the price and demand for experimental monkeys [1] Group 1: Company Insights - Zhaoyan New Drug is expected to benefit from the rising prices of experimental monkeys, as the company has acquired monkey farms to create an integrated industry chain [1] - The company’s stock performance reflects market optimism regarding its future profitability linked to the rising costs of experimental monkeys [1] Group 2: Industry Trends - The price of the crab-eating macaque has surpassed 100,000 RMB, with reports indicating that prices have reached 120,000 to 130,000 RMB due to a supply shortage [1] - Demand for experimental monkeys is projected to be between 51,300 to 62,600 units annually from 2025 to 2027, while supply is estimated at 49,000 to 52,400 units per year, indicating a potential supply-demand gap [1] - The short-term increase in demand for experimental monkeys is driven by a resurgence in new drug development, while supply-side improvements are expected to be challenging [1]