Tongrentang Medical (2667.HK) rose 2.9% in Hong Kong trading to HK$2.85, briefly surging more than 3% within five minutes. The stock has been sliding since its July 7 listing, with the current price nearly 50% below the IPO price of HK$5.50.
The company's IPO was controversial due to a valuation of over 80 times earnings — far above industry peers — and the stock broke below its IPO price by nearly 40% on its first trading day. Revenue stood at 1.15 billion yuan, 1.18 billion yuan and 1.17 billion yuan for the 2023–2025 period, essentially flat, while net profit also declined, fueling ongoing market concerns about the mismatch between its high valuation and weak fundamentals.