研究报告 Research Report 29 Aug 2025 锦欣生殖 Jinxin Fertility (1951 HK) 25H1 多因素影响下业绩波动，待业绩边际改善 25H1 earnings fluctuated amid multiple headwinds; improvement is expected once the margin turns [Table_yemei 观点聚焦 1] Investment Focus [Table_Info] 维持优于大市 Maintain OUTPERFORM 评级 优于大市 OUTPERFORM 现价 HK$2.93 目标价 HK$3.06 HTI ESG 3.9-3.2-3.0 E-S-G: 0-5, (Please refer to the Appendix for ESG comments) 市值 HK$8.08bn / US$1.04bn 日交易额 (3 个月均值) US$35.33mn 发行股票数目 2,758mn 自由流通股 (%) 81% 1 年股价最高最低值 HK$4.42-HK$2.17 注：现价 HK$2.93 为 2025 年 ...

Core Viewpoint - The article highlights the significant impact of national fertility policies on the reproductive health industry, particularly focusing on the strategic adjustments made by Jinxin Reproductive Medicine (1951.HK) to navigate short-term challenges while positioning for future growth [1][18]. Financial Performance - In the first half of 2025, Jinxin Reproductive Medicine reported total revenue of 1.289 billion yuan, a year-on-year decline of 10.7%, and adjusted net profit of 82.26 million yuan, down 68.3% [2]. - The number of IVF egg retrieval cycles decreased by 8.3% to 13,808 cycles, primarily due to the inclusion of assisted reproductive technology in medical insurance, which disrupted demand for high-priced services [2][7]. - The company undertook asset impairment totaling over 1.1 billion yuan, including a 952 million yuan impairment for HRC business goodwill and intangible assets, reflecting a commitment to risk clearance [2][3]. Strategic Adjustments - Jinxin Reproductive Medicine is focusing on core business areas and has initiated a series of strategic adjustments to enhance growth potential, including the termination of non-core investments and the restructuring of its U.S. operations [2][12]. - The company plans to upgrade its southern headquarters and expects to complete the relocation of new facilities by the first quarter of 2026, which will significantly increase its operational capacity [8]. Market Outlook - The domestic market is expected to benefit from the release of policy dividends and an increase in patient consultations, indicating strong underlying demand for reproductive services [8][18]. - The company is also exploring new business segments, such as fertility preservation, which is anticipated to become a significant market opportunity, leveraging innovative models and advanced technologies [13][14]. Management Changes - A management transformation is underway, with the return of CEO Dong Yang to a core management role, aiming to streamline decision-making and focus on financial recovery and shareholder returns [11][12]. - The management has outlined a strategy to enhance cash flow, reduce leverage, and improve shareholder value through stock buybacks and other measures [12][18]. Future Growth Potential - Despite short-term pressures, the core business remains stable, with a 3.2% year-on-year growth in domestic assisted reproductive treatment cycles [7]. - The company anticipates a recovery in performance by 2026, with expectations of returning to 2024 levels and potential for further growth in 2027, driven by policy support and operational improvements [15][18].

Core Points - The Sichuan Panzhihua Municipal Health Commission and the Panzhihua Municipal Finance Bureau have issued the "Implementation Rules for Assisted Reproductive Subsidies in Panzhihua City" [1] - The rules state that eligible Panzhihua residents who successfully conceive after undergoing assisted reproductive technology (specifically in vitro fertilization) and comply with the policy for childbirth will receive a one-time subsidy of 5,000 yuan [1]