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].
锦欣生殖：24H1海外业务快速增长，国内业务预计将受益于医保政策