Jin Medical International Ltd. (NASDAQ:ZJYL) shares surged 63.41% to $3.17 in after-hours trading following the announcement of its unaudited financial results for the six months ended Mar. 31.
Revenue Slips, But Margins Tell a Different Story
The China-based rehabilitation equipment maker said after the market closed on Tuesday that its revenue fell 9.7% from a year earlier to $8.9 million. The decline was driven by weaker demand from its biggest customer, medical device distributor Nissin, because of the weaker Japanese yen and the suspension of electric scooter sales. Even so, its gross margin increased to 26.9% from 24.3%, while wheelchair component sales rose 9.9%.
The company reported a net loss of $0.2 million, versus net income of $0.01 million a year earlier.
According to Jin Medical International, the company held $9.1 million in cash and $21 million in short-term investments for the period.
Research and development expenses jumped 33.4% to $0.9 million, reflecting the company’s push toward product innovation. Basic and diluted loss per share stood at $0.01, unchanged from a year earlier.
CEO Erqi Wang said, “Nevertheless, revenue from our core wheelchair products remained relatively stable, wheelchair component sales increased, and our gross margin improved to 26.9% as we continued to enhance inventory management and operating efficiency.”
Trading Metrics, Technical Analysis
Jin Medical International has a market capitalization of approximately $15.19 million. Its stock has traded between a 52-week high of $17.18 and a 52-week low of $1.64.
ZJYL has a Relative Strength Index (RSI) of 44.77.
On Tuesday, Jin Medical International saw elevated trading activity, with volume reaching 5.78 million shares, about 327.3 times its average daily volume of 17,660 shares.
Over the past 12 months, the stock has fallen 84.86%.
Currently, the stock is trading close to its annual low.
Price Action: The healthcare stock closed the regular session on Tuesday at $1.94, up 0.52%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicates ZJYL stock has a negative price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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