Jinxin Reproduction (01951) Shareholder returns have exceeded 400 million in the past 12 months, and a number of measures have been taken to accelerate the implementation of shareholder returns

On October 2, Jinxin Reproductive (01951), the largest integrated assisted reproduction service provider in the country, announced the “Progress in the Implementation of the Shareholder Return Plan”, showing a total investment of 429 million yuan (RMB, same below) in total shareholder returns through dividends and repurchases over the past 12 months. Meanwhile, due to steady cash flow and the belief that the current price does not fully reflect intrinsic value, Jinxin Fertility will continue and expand repurchases in 2026.

The Zhitong Finance App learned that recently, Jinxin Fertility has also launched a “Special Support Plan for Holding Real Estate Assets”. Market participants have interpreted that through the implementation of “free cash flow - capital efficiency - shareholder return”, Jinxin Fertility will not only help build a long-term stable shareholder return system, but also help promote the long-term steady development of its medical business and enhance the moat in assisted reproduction.

Shareholder returns have exceeded 400 million yuan in the past 12 months

In March of this year, Jinxin Fertility announced the 2026-2028 shareholder return plan, which clearly rewards shareholders with 50% to 80% of the annual adjusted EBITDA, and establishes a maximum share repurchase authorization of 300 million yuan over the next 12 months.

According to the progress of this announcement, from the past 12 months to the date of this announcement, Jinxin Fertility has paid out about RMB 100 million in dividends and repurchased 162,609,000 shares at a cost of approximately RMB 328.9 million, with a cumulative shareholder return of RMB 428.9 million.

Industry insiders believe that the company's stock return plan exceeded expectations, showing the company's confidence in its development. However, Jinxin Fertility believes that the current price does not fully reflect the company's intrinsic value, and the company will continue to promote shareholder return plans and carry out long-term promises to enhance shareholder returns.

Jinxin Fertility also anticipates that after the stock market price more fully reflects its intrinsic value, it will gradually increase its cash dividend distribution for the fiscal year ending 2027 and December 31, 2028. The target annual dividend rate is about 20% to 40% of the non-IFRS adjusted EBITDA (“non-IFRS adjusted EBITDA”) for that year. For the six months ended June 30, 2026, the adjusted EBITDA was RMB 603 million, respectively, so the calculated shareholder return amounts to between 120 million and 240 million yuan.

The implementation of the REITS project will also expand repurchase efforts

On September 29, prior to this announcement, the Shanghai Stock Exchange information showed that it had accepted the “Jinxin Reproductive Holding Real Estate Asset Support Special Program”. The plan manager is CICC, and the issuance will be carried out in two installments. The first installment is expected to be 1.5 billion yuan. After deducting the self-owned portion, the net cash return is expected to be about 1.2 billion yuan. Based on data from June 30, 2026, the company's net debt/EBITDA was reduced from about 2.8 times to about 0.9 times, which can significantly reduce leverage. This REITS only targets the property building itself, and the medical services and normal operation of Shenzhen Zhongshan Obstetrics and Gynecology Hospital are completely unaffected.

The implementation of the “Special Plan to Support Held Real Estate Assets” has also laid a certain foundation for repurchases. In response, industry sources said that since this year, Jinxin Reproduction (01951.HK) has successively played the “revitalize assets+enhance shareholder returns” combo punch, mainly because of stable cash flow and steady operation. “Repurchase back-up valuation, and dividends provide long-term holding income, which not only helps build a long-term stable shareholder return system, but also helps improve capital structure and help the long-term steady development of the medical business.”

According to the data, Jinxin Fertility's cash flow is about 500 million yuan. Regarding the specific practice of shareholder returns in the later stages, Jinxin Fertility stated that when the market value is far below book value, priority is given to promoting repurchases while maintaining stable cash flow dividends; after the market value is fixed to a certain extent, the dividend ratio will be gradually increased to continue to enhance shareholder returns.

Recently, in order to raise the birth rate and cope with the rise in infertility rates, from the national level to various provinces and cities, they have successively stepped up efforts to support the construction of a childbirth-friendly society, and have successively introduced a number of measures to encourage fertility, including assisted reproduction. As a leader in assisted reproduction, the long-term development of Jinxin Fertility is favored by the market.