[ET Net News Agency, 16 January 2020] Morgan Stanley increased its target price for
Jinxin Fertility (JXR)(01951) to HK$12.5 from HK$11 and maintained its "overweight"
rating.
The research house noted that management lowered 2019 revenue growth guidance for HRC to
the mid-single-digit level from 10% previously, indicating flat revenue in 2H 2019. This
was caused by the renovation of the Pasadena Clinic which contributes almost half of HRC's
business.
In China, management expects Chengdu Xinan Hospital to post 15% revenue growth in 2019,
slightly behind previous expectations. This is because the VIP area was closed down for
several months during building relocation.
Despite slower topline growth, management reiterated 20-25% growth guidance for 2019 of
adjusted profit on prudent cost control, and >20% bottom-line growth in 2020. (KL)