Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

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Equity Bottom-Up

Jinxin Fertility Group  / Equity Bottom-Up

<ul><li>Jinxin Fertility Group Ltd., China’s largest private provider of in vitro fertility (IVF) services, is buying a stake in an Indonesian peer, venturing into Southeast Asia as demand in China declines with more couples opting not to have babies.</li><li>Hong Kong-listed Jinxin Fertility has signed an equity investment deal to become a “significant shareholder” of PT Morula Indonesia, an IVF specialist affiliated with PT Bundamedik Tbk, a major women- and children-focused health care services group in Indonesia, according to a joint statement Monday.</li><li>It did not specify how much capital Jinxin will invest.</li></ul>

Jinxin Fertility Group Ltd., China’s largest private provider of in vitro fertility (IVF) services, is buying a stake in an Indonesian peer, venturing into Southeast Asia as demand in China declines with more couples opting not to have babies.Hong Kong-listed Jinxin Fertility has signed an equity investment deal to become a “significant shareholder” of PT Morula Indonesia, an IVF specialist affiliated with PT Bundamedik Tbk, a major women- and children-focused health care services group in Indonesia, according to a joint statement Monday.It did not specify how much capital Jinxin will invest.

Chinese IVF Specialist Expands Into Southeast Asia With Indonesian Investment 

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>1H23 results inline. Jinxin reported 1H23 revenue of RMB1,334mn, up 17.2% YoY, and non-IFRS adjusted net profit of RMB255mn, slightly down 1.2% YoY.</li><li>In 1H23, revenue accounted for 46.2% of our full-year forecast, lower than its historical average, while non-IFRS adjusted net profit represented 50.3% of our full-year forecast, higher than its historical average.</li><li>Excluding the two hospitals in Yunnan consolidated from July 2022, the organic revenue growth of 6.4% YoY was mainly driven by the strong recovery in Shenzhen (revenue +13.8% YoY) and the US (revenue +21.0% YoY).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H23 results inline. Jinxin reported 1H23 revenue of RMB1,334mn, up 17.2% YoY, and non-IFRS adjusted net profit of RMB255mn, slightly down 1.2% YoY.In 1H23, revenue accounted for 46.2% of our full-year forecast, lower than its historical average, while non-IFRS adjusted net profit represented 50.3% of our full-year forecast, higher than its historical average.Excluding the two hospitals in Yunnan consolidated from July 2022, the organic revenue growth of 6.4% YoY was mainly driven by the strong recovery in Shenzhen (revenue +13.8% YoY) and the US (revenue +21.0% YoY).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Jinxin Fertility (1951 HK) – Recovery to Expedite in 2H23E

Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Thematic (Sector/Industry)

<ul>
<li>The IVF industry is booming, driven by couples having children later in life as well as infertility problems.</li>
<li>There should be plenty of opportunities for IVF clinic operators, including for Jinxin Fertility which may benefit if the Chinese government introduces subsidies for IVF procedures. But the acquisitive nature of many IVF-related companies has caused their returns on equity and earnings per share growth to be weak.</li>
<li>One stock that trades at a low multiple with fat profit margins is Organon, though be aware of its ongoing patent cliffs, which may be the reason it was spun off in the first place.</li>
</ul>


The IVF industry is booming, driven by couples having children later in life as well as infertility problems.
There should be plenty of opportunities for IVF clinic operators, including for Jinxin Fertility which may benefit if the Chinese government introduces subsidies for IVF procedures. But the acquisitive nature of many IVF-related companies has caused their returns on equity and earnings per share growth to be weak.
One stock that trades at a low multiple with fat profit margins is Organon, though be aware of its ongoing patent cliffs, which may be the reason it was spun off in the first place.


Cross Asset Strategy

<ul><li>Local / In Depth: Frugality bites for China’s cash-strapped local governments</li><li>China-U.S. /: Xi and Biden talk by phone on bilateral cooperation and differences</li><li>Trade /: Moscow closes auto export loophole that had been a boon to Chinese traders</li></ul>

Local / In Depth: Frugality bites for China’s cash-strapped local governmentsChina-U.S. /: Xi and Biden talk by phone on bilateral cooperation and differencesTrade /: Moscow closes auto export loophole that had been a boon to Chinese traders

CX Daily: Frugality bites for China’s cash-strapped local governments 

<ul><li>2022 earnings impacted by COVID outbreaks. Jinxin reported 2022 revenue of RMB2,364mn, up 29% YoY, and non-IFRS adjusted net profit of RMB274mn, down 40% YoY.</li><li>Revenue was in line with our forecasts while non-IFRS adjusted net profit missed our forecast by 21%, mainly due to the negative impact from COVID-19 outbreaks in cities where Jinxin operates, mainly Shenzhen and Chengdu.</li><li>By segment, revenue from Chengdu accounted for 59% of total revenue in 2022, increased by 57% YoY, thanks to business consolidation of Jinxin Women and Children Hospital (WCH).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2022 earnings impacted by COVID outbreaks. Jinxin reported 2022 revenue of RMB2,364mn, up 29% YoY, and non-IFRS adjusted net profit of RMB274mn, down 40% YoY.Revenue was in line with our forecasts while non-IFRS adjusted net profit missed our forecast by 21%, mainly due to the negative impact from COVID-19 outbreaks in cities where Jinxin operates, mainly Shenzhen and Chengdu.By segment, revenue from Chengdu accounted for 59% of total revenue in 2022, increased by 57% YoY, thanks to business consolidation of Jinxin Women and Children Hospital (WCH).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Jinxin Fertility (1951 HK) – Expect post-pandemic business recovery

China

Jinxin Fertility Group Limited provides assisted reproductive services. The Company offers vitro fertilization services, embryo transfer services, management services, and other services. Jinxin Fertility Group also provides ancillary medical services.

Jinxin Fertility Group (1951 HK)

Chinese IVF Specialist Expands Into Southeast Asia With Indonesian Investment

Jinxin Fertility Group Ltd. , China’s largest private provider of in vitro fertility (IVF) services, is buying a stake in an Indonesian peer,...

Caixin Global

Jinxin Fertility (1951 HK) – Recovery to Expedite in 2H23E

1H23 results inline. Jinxin reported 1H23 revenue of RMB1,334mn, up 17.2% YoY, and non-IFRS adjusted net profit of RMB255mn, slightly down 1.2% YoY.

CMB International

IVF: Secular Growth for Decades to Come.

The IVF industry is booming, driven by couples having children later in life as well as infertility problems. There should be plenty of...

Asian Century Stocks

CX Daily: Frugality bites for China’s cash-strapped local governments

Local / In Depth: Frugality bites for China’s cash-strapped local governments Chinese local governments are gearing up for another tough year and...

Caixin Global

Jinxin Fertility (1951 HK) – Expect post-pandemic business recovery

2022 earnings impacted by COVID outbreaks. Jinxin reported 2022 revenue of RMB2,364mn, up 29% YoY, and non-IFRS adjusted net profit of RMB274mn,...

CMB International