[ET Net News Agency, 30 July 2019] Morgan Stanley initiated coverage on Jinxin
Fertility Group (01951) with an "overweight" rating and a target price of HK$11.
The research house views Jinxin as one of the best assisted reproductive services (ARS)
plays in China given its strong market leadership, good earnings visibility, and scarcity
value.
It owns two hospitals in Chengdu and Shenzhen and manages two facilities via service
agreements in China and the US. According to Frost & Sullivan (F&S), Jinxin's network
ranked No. 2 in China and the US by 2018 ARS revenue, with respective market shares of
3.9% and 2.5%. It recorded 2016-18 CAGRs of 63% and 64% for revenue and adjusted net
profit. Morgan projected 40%/56% 2018-21 CAGRs in revenue/adjusted net profit. (KL)