[ET Net News Agency, 6 August 2019] Credit Suisse initiated coverage on Jinxin
Fertility (JXR)(01951) with an "outperform" rating and a target price of HK$12.25.
The research house believes ARS (assisted reproduction service) will become more and
more popular in China in the near-to-mid future and the area is underdeveloped with huge
potential and limited private players due to high entry barriers.
Using the top-down method, Credit Suisse estimated that the potential China ARS market
size was roughly US$29.4bn - eight-fold of the current market size of US$3.8bn. Credit
Suisse believes a rising infertility rate, the recommendation of the infertility guideline
and increasing affordability are the three main driving forces for ramping up of the China
ARS market.
It said technology and licence are the main entry barriers in the ARS market, in which
JXR has achieved solid performance through 16 years' operation. Reproducibility of JXR's
business model has also been proven by the successful acquisition of Shenzhen Zhongshan
Hospital and HRC Medical. (KL)