Cinda Securities recently issued a research report highlighting that from an industry supply-side perspective, postpartum centers are entering a phase of restructuring. SAINT BELLA (02508) aims to enhance industry service standards and operational thresholds by establishing a specialized regulatory account with a bank, which is expected to accelerate supply clearing. The company is likely to benefit significantly from its light-asset model based on hotel operations, as well as its approach of initially managing operations before acquiring facilities. The firm maintains its earnings forecast for 2025-2027, estimating adjusted net profits of RMB 121 million, RMB 198 million, and RMB 302 million, respectively. The current stock price corresponds to a PE ratio of 32x/19x/13x, and the "Buy" rating remains intact. Given the company's high growth potential, a target PE of 30x is assigned for 2026, leading to a target price of HKD 10.36. The report notes that clients typically begin booking postpartum centers about six months before their due date and are generally required to pay a 50% deposit upon signing a service contract. The company places these deposits in a specialized bank control account, which freezes the funds from the time of signing until the client actually moves in. Only after the client checks in and receives services can SAINT BELLA request fund transfers from the bank according to the agreed procedure. Through independent bank custody and closed-loop fund management, the company ensures the security of customer deposits, providing a more reassuring consumer experience and potentially reducing decision-making time and costs. As a leading player in the industry, the company is pioneering the execution of independent custody for customer deposits with banks, which may set a benchmark in terms of fund safety and promote industry standardization. In 2025, the postpartum center industry is witnessing closures, with reports indicating that the Ai Jia postpartum center, known for its RMB 19,800 one-on-one service and operating 67 locations nationwide, filed for bankruptcy early in the year, followed by a series of closures among similar establishments. The firm believes that the previous low-quality expansion and price wars in the industry have begun to exhibit backlashes, suggesting that the company's elevation of service standards and operational thresholds may hasten supply clearing. As a standardized leader providing high-quality products and services, the company is well-positioned to capitalize on these developments.