On October 2, Jinxin Fertility (01951), the country's largest integrated assisted reproductive service provider, released an announcement on the "Progress of Shareholder Return Plan Implementation," showing that total shareholder returns through dividends and buybacks over the past 12 months amounted to 429 million yuan (RMB, same below). At the same time, due to stable cash flow and the belief that the current price does not fully reflect intrinsic value, Jinxin Fertility will continue and expand buybacks in 2026. According to Zhitong Finance APP, Jinxin Fertility recently also issued a "holding-type real estate asset-backed special plan." Market observers interpret that through the implementation of "free cash flow—capital efficiency—shareholder returns," Jinxin Fertility not only helps build a long-term stable shareholder return system but also promotes the long-term steady development of its medical business, enhancing its moat in assisted reproduction.

Shareholder Returns Exceed 400 Million Yuan in Past 12 Months

In March this year, Jinxin Fertility released its 2026–2028 shareholder return plan, explicitly committing to return 50%–80% of annual adjusted EBITDA to shareholders and establishing a maximum 300 million yuan share buyback authorization for the next 12 months. According to the progress disclosed this time, from the past 12 months to the date of this announcement, Jinxin Fertility has paid dividends of approximately 100 million yuan and repurchased 162,609,000 shares at a cost of approximately 328.9 million yuan, with cumulative shareholder returns reaching 428.9 million yuan. Industry observers believe the company's stock return plan exceeded expectations, demonstrating the company's confidence in its development. However, Jinxin Fertility believes the current price does not fully reflect the company's intrinsic value, and the company will continue to advance its shareholder return plan, fulfilling its long-term commitment to enhancing shareholder returns. Jinxin Fertility also expects that after the share market price more fully reflects its intrinsic value, it will gradually increase cash dividend distributions for the fiscal years ending December 31, 2027 and 2028, with a target annual payout ratio of approximately 20% to 40% of non-IFRS adjusted EBITDA for the year. For the six months ended June 30, 2026, adjusted EBITDA was 603 million yuan, so the calculated shareholder return amount ranges from 120 million to 240 million yuan.

REITs Project Implementation Will Also Expand Buyback Efforts

Prior to this announcement, on September 29, Shanghai Stock Exchange information showed it had accepted Jinxin Fertility's "holding-type real estate asset-backed special plan," with a proposed issuance of 1.93 billion yuan. The plan manager is CICC, and the issuance will be conducted in two phases, with the first phase expected to be 1.5 billion yuan. After deducting the self-held portion, net cash recovered is expected to be approximately 1.2 billion yuan. Based on data as of June 30, 2026, after the transaction is completed, the company's net debt/EBITDA will decrease from approximately 2.8 times to approximately 0.9 times, significantly reducing leverage and enhancing financial stability and flexibility. This REITs only targets the property building itself; the medical services and normal operations of Shenzhen Zhongshan Maternity and Child Health Hospital are completely unaffected. The implementation of the "holding-type real estate asset-backed special plan" also lays a certain foundation for buybacks. In this regard, industry observers say that since the beginning of this year, the reason Jinxin Fertility (01951.HK) has successively rolled out a combination of "revitalizing assets + enhancing shareholder returns" is mainly due to stable cash flow and robust operations. "Buybacks support valuation, dividends provide long-term holding returns; this not only helps build a long-term stable shareholder return system but also helps improve capital structure and supports the long-term steady development of the medical business." Data shows that Jinxin Fertility's cash flow is approximately 500 million yuan. Regarding the specific approach to future shareholder returns, Jinxin Fertility stated that when market value is far below book value, it will prioritize buybacks while maintaining stable cash flow dividends; after market value recovers to a certain extent, it will gradually increase the dividend ratio to continuously enhance shareholder returns. Recently, in order to increase birth rates and address the rising infertility rate, from the national level to various provinces and cities, support for building a fertility-friendly society has been intensified, with multiple pro-natal measures including assisted reproduction introduced successively. As a leader in assisted reproduction, Jinxin Fertility's long-term development is favored by the market.