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]
锦欣生殖：2024年半年报点评：海外业务恢复良好，国内业务受政策影响需求或延迟释放