Investment Rating - The report maintains a "Recommend" rating for Jinxin Fertility (01951 HK) with a target price of HKD 3 3 [1][3] Core Views - Jinxin Fertility achieved a revenue of RMB 1 444 million (+8 2%) and an adjusted net profit of RMB 260 million (+1 8%) in H1 2024 [1] - The company's overseas business recovered well with a revenue increase of 11 5% while domestic business was affected by policy delays [1] - The gross margin declined to 40 4% (-1 9pct) due to increased human resource costs from US business expansion [1] - The report forecasts revenue growth of 13 0% 13 1% and 11 9% for 2024 2025 and 2026 respectively with adjusted net profit growth of 7 0% 13 2% and 12 0% [1] Regional Performance - Chengdu region contributed RMB 883 million (+8 6%) with VIP business increasing to 19 5% of ARS revenue [1] - Greater Bay Area revenue grew 10 5% to RMB 242 million driven by increased market share and reputation of Shenzhen Zhongshan Hospital [1] - Kunming and Wuhan revenue declined 6 6% to RMB 130 million due to business adjustments in Kunming [1] - Overseas revenue reached RMB 391 million (+11 5%) supported by HRC Medical's promotion of egg freezing services [1] Financial Projections - Revenue is projected to reach RMB 3 180 million 3 595 million and 4 023 million in 2024 2025 and 2026 respectively [2] - Net profit is expected to grow to RMB 413 million 483 million and 563 million in 2024 2025 and 2026 respectively [2] - The company's PE ratio is forecasted at 14 0x 12 0x and 10 3x for 2024 2025 and 2026 respectively [2] Valuation - The target PE ratio for 2024 is 20x corresponding to a target market cap of HKD 9 1 billion [1] - The current share price is HKD 2 3 with a 12-month high/low of HKD 4 33/2 05 [4]

Investment Rating - The report maintains an "Outperform" rating for Jinxin Fertility (1951 HK) with a target price of HKD 3.69, down 31% from previous estimates [3][10]. Core Insights - The company's revenue for 24H1 was CNY 1.44 billion, reflecting an 8.2% increase, while net profit decreased by 15.0% to CNY 190 million, primarily due to increased equity incentive amortization [6][9]. - The overseas business is experiencing rapid growth, particularly in the U.S., where the company plans to recruit at least five new doctors in 2024 [6][10]. - The inclusion of assisted reproductive services in medical insurance is expected to significantly reduce the financial burden on residents, potentially boosting the company's performance [9][10]. Summary by Sections Financial Performance - Revenue for 24H1 was CNY 1.44 billion (+8.2%), with a net profit of CNY 190 million (-15.0%). Non-GAAP adjusted net profit was CNY 260 million (+1.8%) [6][7]. - Revenue by business segment includes: - Assisted reproductive services: CNY 780 million (+9.6%) - Management services: CNY 290 million (+1.2%) - Gynecology and pediatric services: CNY 200 million (+6.8%) - Obstetric services: CNY 120 million (+14.1%) - Sales of consumables and equipment: CNY 60.274 million (+22.4%) [7][8]. Profitability Metrics - The gross margin for 24H1 was 40.4% (-1.9 percentage points), with a sales expense ratio of 6.0% (-0.6 percentage points) and a management expense ratio of 14.9% (+0.8 percentage points) [8][9]. - The decline in gross margin is attributed to increased labor costs from recruiting new doctors in the U.S. [8]. Market Outlook - The Chinese assisted reproductive market is expected to grow due to an increase in older pregnant women and supportive government policies [10]. - Revenue forecasts for 2024 and 2025 are CNY 3.07 billion and CNY 3.48 billion, representing year-on-year growth of 10.0% and 13.5% respectively [10].

Investment Rating - Buy rating maintained for Jinxin Fertility (01951 HK) [2] Core Views - Jinxin Fertility achieved steady growth in H1 2024 with rapid increase in overseas egg retrieval cycles [1] - Revenue reached RMB 1 444 million (+8 2% YoY) adjusted net profit was RMB 260 million (+1 8% YoY) [3] - Gross margin was 40 38% (-1 93pct YoY) net margin was 13 18% (-3 6pct YoY) [3] - Forecasted net profit for 2024-2026 is RMB 387/463/538 million with PE ratios of 14 5/12 1/10 4x [3] - Long-term growth potential supported by strong profitability high industry barriers and upcoming Shenzhen facility [3] Business Performance Revenue Breakdown - ARS business revenue: RMB 778 million (+9 58% YoY) [3] - Management services revenue: RMB 287 million (+1 06% YoY) [3] - Obstetrics medical services revenue: RMB 116 million (+13 73% YoY) [3] - Other medical services revenue: RMB 202 million (+6 88% YoY) [3] Regional Performance - Chengdu region revenue: RMB 883 million (+8 6% YoY) driven by ARS growth (+4%) and VIP business increase (16 3% to 19 5%) [3] - Greater Bay Area revenue: RMB 242 million (+10 5% YoY) [3] - Kunming and Wuhan revenue: RMB 130 million (-6 6% YoY) [3] - Overseas revenue: RMB 391 million (+11 5% YoY) [3] Egg Retrieval Cycles - Total egg retrieval cycles: 15 100 (+2 72% YoY) [3] - Chengdu: 7 571 cycles (-4 67% YoY) [3] - Greater Bay Area: 3 022 cycles (+6 67% YoY) with VIP business increase (7 2% to 7 7%) [3] - Overseas: 2 325 cycles (+25 27% YoY) driven by HRCMedical's frozen egg business and international recovery [3] - Kunming and Wuhan: 2 133 cycles (+1 57% YoY) [3] Strategic Developments - Completed 30% stake acquisition in Morula Indonesia's largest IVF service group with 10 clinics [3] Financial Projections - Revenue forecast: RMB 3 145/3 636/4 213 million for 2024-2026 [4] - Net profit forecast: RMB 387/463/538 million for 2024-2026 [4] - Gross margin forecast: 42 2%/42 3%/42 1% for 2024-2026 [4] - Net margin forecast: 12 16%/12 93%/12 96% for 2024-2026 [4] - ROE forecast: 3 65%/4 3%/4 75% for 2024-2026 [4] - EPS forecast: RMB 0 14/0 17/0 20 for 2024-2026 [4]

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 1,443.8 million, an increase of 8.2% compared to RMB 1,333.9 million for the same period in 2023[2] - The net profit for the six months ended June 30, 2024, was approximately RMB 190.3 million, a decrease of 15.0% from RMB 223.8 million for the same period in 2023, primarily due to an increase in employee stock option plan expenses by RMB 30.7 million[2] - The adjusted net profit under non-IFRS was approximately RMB 259.6 million, up 1.8% from RMB 255.0 million for the same period in 2023[2] - The non-IFRS EBITDA for the six months ended June 30, 2024, was approximately RMB 380.9 million, a decrease of 1.8% from RMB 387.7 million for the same period in 2023[2] - The adjusted non-IFRS EBITDA was approximately RMB 418.1 million, an increase of 6.1% compared to RMB 394.1 million for the same period in 2023[2] - The total comprehensive income for the period was RMB 209.3 million, down from RMB 446.6 million in the same period last year[6] - Basic and diluted earnings per share for the period were RMB 0.07, compared to RMB 0.08 for the same period in 2023[6] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 13,594.5 million, compared to RMB 13,553.7 million as of December 31, 2023[7] - Cash and cash equivalents as of June 30, 2024, were RMB 517.3 million, down from RMB 624.3 million as of December 31, 2023[7] - As of June 30, 2024, the company's total liabilities increased to RMB 2,337,133 thousand from RMB 3,019,532 thousand as of December 31, 2023, indicating a decrease of approximately 22.6%[8] - The company's net assets rose to RMB 10,268,237 thousand as of June 30, 2024, compared to RMB 10,186,812 thousand as of December 31, 2023, reflecting an increase of about 0.8%[8] - The company's equity attributable to owners increased to RMB 10,174,290 thousand as of June 30, 2024, from RMB 10,091,423 thousand as of December 31, 2023, reflecting a growth of about 0.8%[8] - The company's total assets less current liabilities decreased to RMB 12,605,370 thousand as of June 30, 2024, from RMB 13,206,344 thousand as of December 31, 2023, representing a decline of approximately 4.6%[8] Cash Flow and Financing - Operating cash flow before changes in working capital for the six months ended June 30, 2024, was RMB 468,444,000, compared to RMB 457,213,000 for the same period in 2023, reflecting a growth of 2.7%[15] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 383,827,000, an increase from RMB 336,824,000 in 2023, representing a growth of 13.9%[15] - The company reported a net cash outflow from financing activities of RMB 380,126,000 for the six months ended June 30, 2024, compared to a net inflow of RMB 1,057,508,000 in the same period of 2023[16] - As of June 30, 2024, the company had unused bank financing of approximately RMB 419,659,000 available for operational use[19] - The company has secured additional bank financing of approximately RMB 356,340,000 post June 30, 2024, which is immediately available for use[19] Operational Highlights - The segment profit for Greater China was RMB 345,660,000, while the overseas segment profit was RMB 8,717,000, leading to a total segment profit of RMB 354,377,000[24] - The revenue from assisted reproductive and related services was RMB 778,072,000 for the six months ended June 30, 2024, compared to RMB 710,052,000 in 2023, indicating a growth of about 9.6%[25] - The total population in China decreased by 2.1 million to 1,409.7 million by the end of 2023, highlighting demographic challenges that may impact market dynamics[46] - The company plans to enhance its clinical, management, and research capabilities to remain competitive in the evolving healthcare landscape[47] Strategic Initiatives - The company aims to expand its market presence by promoting its integrated reproductive services strategy in other regions[56] - The company has launched the "Jinbao Plan 2.0," allowing patients to undergo IVF with zero upfront payment and full reimbursement if unsuccessful, addressing financial barriers for patients[60] - The company acquired a 30% stake in PT Morula Indonesia, the largest assisted reproductive service group in Indonesia, enhancing its strategic investment position in the region[62] - HRC Medical plans to recruit at least 5 new doctors in 2024 and is expanding its clinic network, with a new satellite center in Beverly Hills already operational and a core clinic set to open in Q1 2025[62] Governance and Compliance - The company has adopted corporate governance codes to ensure compliance and enhance shareholder value[91] - The company has established an Audit and Risk Management Committee, chaired by independent non-executive director Mr. Ye Changqing, to monitor compliance with applicable laws and regulations[103] - The company is focused on maintaining transparency and providing adequate disclosures regarding its financial performance[104]

Summary of Conference Call Company and Industry Involved - The discussion involves a pharmaceutical company participating in an online event with 300 listed pharmaceutical companies, focusing on the auxiliary promotion industry [1] Core Points and Arguments - The company has recently experienced a significant promotion within its leadership, indicating potential strategic shifts or new initiatives [1] - The call aims to provide insights into the company's recent developments and updates in the auxiliary promotion industry, particularly in light of recent policy changes [1] Other Important but Possibly Overlooked Content - The mention of numerous updates in relevant policies suggests a dynamic regulatory environment that could impact the company's operations and strategy [1]

今天非常荣幸邀请到了紧急升职的唐总跟大家做一个线上的交流那么这个交流也是作为咱们本次300家医药上市公司云端店的这样一个活动的一部分那么要先邀请唐总为大家简单的介绍一下公司近期的情况特别是辅助升职行业现在相关的政策也有很多的更新好谢谢宇晗 大家好我是笔记升职的IR唐月我先简单的跟大家介绍一下目前公司的一些主要的运营设置然后以及目前政策的一些导向然后剩下的时间可能就给大家提问题然后我们聚焦一些大家比较关心的问题 从目前来看因为现在刚刚结束整个上半年的一个运营我们公司在收入端的话目前大概是一个高单位数的增长然后在利润端的话之前我们是给过一个全年的指引正常化利润是较去年有一个15%的增长那目前的话这个指引也是没有任何修改的然后从上半年的一个实际完成的一个情况来看我们基本上也能达到这个数值绝对值的一半 所以从时间的这个进度来看的话基本上都是按照我们预算的目标来完成的然后从这个分板块来看的话我们目前的话主要是成熟医院这边的增长也不错现在也是一个高单位数往上的增长然后海外这边的话主要就是美国美国的话目前的增长会更快一些了它上半年的一个收入可能有往上的一个增长 这是我们目前的一个大概的一个经营情况然后在这个运营这一块的话我 ...

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's 2023 performance met expectations, with revenue reaching RMB 2.789 billion, a YoY increase of 18.0%, and net profit attributable to shareholders of RMB 345 million, a YoY increase of 184.6% [2][5] - The adjusted net profit was RMB 471 million, a YoY increase of 72.0%, with IVF treatment cycles reaching 30,240, a YoY increase of 15.8% [2][5] - Growth was driven by stable performance in mature institutions in Greater China, recovery in overseas markets, and full-year consolidation of new hospitals [2][6] Business Performance Greater China Region - In the Greater China region, mature institutions in Chengdu and the Greater Bay Area achieved 22,260 cycles, a YoY increase of 6.0%, contributing RMB 5.90 billion in performance, a YoY increase of 28.2% [2][6] - Emerging institutions in Yunnan and Wuhan achieved 4,261 cycles, a YoY increase of 42.7%, with IVF revenue of RMB 179 million, a YoY increase of 35.8%, and reduced losses by RMB 3 million [2][7] Overseas Markets - In the US and Laos, the company achieved 3,847 cycles, a YoY increase of 11.7%, with revenue of RMB 570 million, a YoY increase of 23.4%, and a turnaround in performance with a profit of RMB 27 million [2][8] - The US market saw a recovery in international patients to approximately 50% of pre-pandemic levels, with HRC recruiting 6 new doctors [8] Industry Outlook - The assisted reproductive industry is characterized by high barriers and high growth potential, with supportive policies accelerating the inclusion of assisted reproductive services in medical insurance across multiple provinces [2][8] Financial Projections - The company's EPS is projected to be RMB 0.15, RMB 0.18, and RMB 0.21 for 2024-2026, with PE ratios of 20.80x, 17.52x, and 14.78x respectively based on the closing price on May 21, 2024 [2][8]

ai171352853475_Jinxin AR2023 Cover V01 28.5mm OP.pdf 1 19/4/2024 下午8:08 Jinxin Fertility Group Limited Jinxin Fertility Group Limited * * （根據開曼群島法律註冊成立的有限公司） (Incorporated under the laws of the Cayman Islands with limited liability) ...

Investment Rating - The report maintains a "Buy" rating for Jinxin Fertility (1951 HK) [3][5] Core Views - Jinxin Fertility achieved robust growth in 2023 with revenue of RMB 2 789 billion (+18 0% YoY) and net profit of RMB 347 million (+194 2% YoY) Adjusted net profit reached RMB 472 million (+72 0% YoY) in line with expectations [2] - The company's core Assisted Reproductive Services (ARS) revenue grew 26 7% YoY to RMB 1 336 billion with success rate improving 0 9 percentage points to 57 5% [3] - Domestic and overseas operations showed steady growth with 30 000 oocyte retrieval cycles completed in 2023 (+16 2% YoY) [3] - The company expanded its Southeast Asia market presence through a strategic partnership with Indonesia's largest fertility group Morula [3] - Profit forecasts for 2024-2026 were revised downward due to overseas business recovery and expense factors with 2024-2026 net profit estimates at RMB 398/462/542 million respectively [3] Business Performance - Revenue breakdown by segment in 2023 [3] - Assisted Reproductive Services (ARS) RMB 1 336 billion (+26 7% YoY) - Management services RMB 566 million (+12 5% YoY) - Auxiliary medical services RMB 209 million (+38 0% YoY) - Obstetrics and pediatrics services RMB 470 million (stable) - Regional performance in 2023 [3] - Chengdu & Greater Bay Area RMB 2 172 billion (+11 9% YoY) 22 000 cycles (+6% YoY) - Yunnan & Wuhan RMB 179 million (+35 8% YoY) 4 261 cycles (+42 7% YoY) - US & Laos RMB 570 million (+23 4% YoY) 3 847 cycles (+11 7% YoY) Financial Projections - Revenue forecasts [4] - 2024E RMB 3 260 billion (+16 88% YoY) - 2025E RMB 3 823 billion (+17 29% YoY) - 2026E RMB 4 541 billion (+18 77% YoY) - Net profit forecasts [4] - 2024E RMB 398 million (+15 41% YoY) - 2025E RMB 462 million (+16 06% YoY) - 2026E RMB 542 million (+17 39% YoY) - EPS forecasts [4] - 2024E RMB 0 14 - 2025E RMB 0 17 - 2026E RMB 0 20 - Valuation multiples [4] - 2024E PE 15x - 2025E PE 13x - 2026E PE 11x Market Data - Current share price HKD 2 44 [5] - Total shares outstanding 2 758 billion [6] - Market capitalization HKD 6 729 billion [6] - 52-week price range HKD 2 05-5 80 [6] - 3-month turnover rate 60 8% [6]

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update Jinxin Fertility (1951 HK) Impressive business rebound in 2023 Target Price HK$4.43 Jinxin Fertility (Jinxin) reported 2023 revenue of RMB2,789mn, up 18.0% YoY. (Previous TP HK$7.35) Non-IFRS adjusted net profit grew substantially by 72.0% YoY to RMB472mn. Up/Downside 82.3% Revenue was in line with our forecast while non-IFRS adjusted net income Current Price HK$2.43 slightly missed our forecast by 5.7%, which was mainly attr ...