Core Viewpoint - The report from CMB International indicates that Jinxin Fertility (01951) experienced a significant decline in revenue and net loss in the first half of the year, prompting a downward revision of revenue and profit forecasts for the coming years [1] Financial Performance - Jinxin Fertility's revenue decreased by 11% to 1.29 billion RMB in the first half of the year [1] - The company reported a net loss of 1.04 billion RMB, with a gross margin decline of 10 percentage points to 30.4% [1] - After adjusting for impairment and other non-recurring or non-cash items, the adjusted net profit for the first half was approximately 82 million RMB, representing a year-on-year decline of 68% [1] Forecast Adjustments - CMB International has lowered the company's revenue forecasts for 2025 to 2027 by 17% to 18% [1] - The adjusted net profit forecast has been reduced by approximately 50% [1] - The target price for Jinxin Fertility has been revised down to 3.3 HKD, with the rating downgraded to "Neutral" based on current valuation [1] Management Plans - The management's reform plans include restructuring and financing for the U.S. business, halting further investments in Laos to optimize the debt structure and reduce financial costs [1] - There are plans for share buybacks and dividends at an appropriate time [1] - The company aims to focus on key domestic businesses, with a new hospital relocation in Shenzhen set to start in the first quarter of next year [1] - The incubation centers in Yunnan and Wuhan are expected to exceed 5,000 cycles in the short term, with improved profitability [1] - Strategic layout for fertility preservation business is also part of the management's future plans [1]
交银国际：降锦欣生殖评级至“中性” 目标价下调至3.3港元