BOCOM INTL: Upgrades JXR (01951) rating to "buy" with a target price of HK$3.1.

BOCOM INTL released a research report stating that the investment rating for JXR (01951) has been upgraded to "buy" with a target price of 3.1 Hong Kong dollars. BOCOM INTL pointed out that in the period from January to April 2026, the number of new infertility patients visiting the company increased by 7.5%, and the number of treatment cycles increased by 5.2%. The business in the Greater Bay Area (new infertility patients +18%), Kunming/Wuhan (treatment cycles +16%), and overseas markets (treatment cycles +37%) all showed promising performance. Operating cash flow has experienced a significant breakthrough, and capital expenditure in 2026 is expected to be reduced to below 50 million RMB, laying a solid foundation for increasing shareholder returns through buybacks. The management anticipates that with the support of the ABS in the new Shenzhen branch and the financing plan in the United States, the repurchase amount in the second half of the year has the potential to exceed 300 million RMB, in addition to cash dividends of no less than 20% of adjusted EBITDA (achieving a total shareholder return of 50-80% of EBITDA annually from 2026 to 2028). They are confident in maintaining a potential shareholder return rate of 8-9% for the full year.