Core Viewpoint - The stock price of Zhaoyan New Drug has rebounded significantly, reaching a peak of 21.54 HKD after a prolonged decline, driven by market interest and the recent surge in monkey prices [1][2][3]. Stock Performance - After a four-month decline, Zhaoyan New Drug's stock price surged by 21.22% in a single day, marking its return to the 20 HKD level [1][2]. - The stock had previously peaked at 28.70 HKD in July 2023 but faced a significant drop to 13.89 HKD by June 20, 2023, representing a decline of 28.73% [3]. - The stock's price fluctuated around the 60-day moving average until October 4, 2023, when it broke below this level, indicating a downward trend [5]. Market Dynamics - The recent rebound in stock price is attributed to the influx of funds from the Hong Kong Stock Connect, with significant buying from mainland retail investors [6][8]. - The average cost of shares held by investors has decreased from 23.30 HKD in early October to 19.44 HKD by December 11, 2023, with a notable increase in profit margins following the recent price surge [8]. Financial Performance - Zhaoyan New Drug reported a revenue of 985 million CNY for the first three quarters of 2023, a decline of 26.23% year-on-year, with Q3 revenue dropping by 34.87% [12][13]. - The company has faced challenges due to a significant loss in biological asset valuation, amounting to 267 million CNY, impacting its profitability [13]. Industry Outlook - The CRO industry is expected to show resilience in 2024, driven by increased R&D budgets from multinational corporations and favorable domestic policies promoting innovation [11]. - The demand for experimental monkeys, crucial for drug development, is anticipated to rise due to a supply-demand gap, potentially boosting Zhaoyan New Drug's performance in 2025 and beyond [14].

Core Viewpoint - The stock price of Zhaoyan New Drug has rebounded significantly, reaching a peak of 21.54 HKD after a prolonged decline, indicating renewed market interest in the company and its leading position in the CRO industry [1][2]. Group 1: Stock Performance - After a four-month decline, Zhaoyan New Drug's stock price surged by 21.22% in a single day, marking its return above the 20 HKD threshold [1][2]. - The stock had previously reached a high of 28.70 HKD in July 2023 but faced a significant drop to 13.89 HKD by June 20, representing a decline of 28.73% from its peak [3]. - Following a period of volatility, the stock began to recover, with a notable rebound in the Hang Seng Healthcare Index, which increased by 9.45% since June 20 [3]. Group 2: Market Dynamics - The recent stock price increase is attributed to the influx of funds from the Hong Kong Stock Connect, with significant buying from mainland retail investors [6]. - The average holding cost for Zhaoyan New Drug shares has decreased from 23.30 HKD in early October to 19.44 HKD by December 11, with a notable increase in profit margins following the recent price surge [7]. Group 3: Financial Performance - Zhaoyan New Drug reported a revenue decline of 26.23% year-on-year for the first three quarters of 2023, with Q3 revenue dropping by 34.87% [10][11]. - The company has faced challenges due to a significant loss in fair value of biological assets, amounting to 267 million HKD, impacting profitability despite revenue growth in new orders [11]. - New signed orders for the first three quarters of 2025 reached 1.64 billion HKD, reflecting a year-on-year growth of 17.1%, indicating potential recovery in demand [11]. Group 4: Industry Outlook - The CRO industry is expected to show resilience in 2024, driven by increased R&D budgets from multinational corporations and improved regulatory conditions in China [10]. - The demand for experimental monkeys, a key asset for Zhaoyan New Drug, is projected to rise due to a supply-demand gap, which could positively impact the company's performance in 2025 and beyond [12].

Core Viewpoint - The investment by Medisi is aimed at strengthening the supply of key experimental animals through acquiring a 23% stake in Plai Biological, which specializes in breeding and selling experimental animals like macaques and crab-eating monkeys [1][2]. Group 1: Investment Details - Medisi plans to acquire a 23% stake in Plai Biological for a total amount of 21.906 million yuan [1]. - The registered capital corresponding to this stake is 23 million yuan, with a paid-in capital of 7.728 million yuan [2]. - The remaining unpaid capital of 15.272 million yuan will be settled by Medisi at a nominal fee of 1 yuan per registered capital [2]. Group 2: Company Background - Plai Biological was established in November 2022 with a registered capital of 100 million yuan and paid-in capital of 33.6 million yuan [1]. - The company is fully owned by Puxin Biological, which holds a national license for breeding key protected terrestrial wildlife [1]. Group 3: Industry Context - Medisi primarily engages in pharmaceutical research outsourcing, with experimental animals being a crucial raw material [3]. - The demand for experimental animals has surged due to the growth in the healthcare industry, leading to significant price increases for monkeys used in experiments [3]. - The price of crab-eating monkeys rose from approximately 13,500 yuan in 2018 to over 200,000 yuan in 2022, impacting Medisi's operational costs [3]. Group 4: Market Trends - In 2023, the demand for experimental monkeys has decreased, resulting in a drop in prices to 125,000 yuan, with projections for 2024 to fall below 100,000 yuan [4]. - Companies that previously stockpiled monkeys, like Zhaoyan New Drug, have faced financial challenges due to the declining value of biological assets [4].