BenQ Medical Center, the largest private for-profit general hospital in East China—(02581.HK) December 2025 IPO analysis

$BENQ HOLDING(02581.HK)

Sponsors: China International Capital Corporation Hong Kong Securities Limited Citigroup Global Markets Asia Limited 

Offer Price: HK$9.34 - HK$11.68

Fundraising Amount: HK$626 million - HK$783 million

Total Market Cap: HK$2.914 billion - HK$3.644 billion

Board Lot Size 500 shares 

Minimum Subscription Fee HK$5,898.90

Subscription Period December 12, 2025 - December 17, 2025

Grey Market Trading Time: December 19, 2025

Listing Date December 22, 2025 (Monday)

Total Offer Shares 67.00 million shares

International Placement 60.30 million shares, accounting for approximately 90.00% 

Public Offering 6.70 million shares, accounting for approximately 10.00%  

Allocation Mechanism Mechanism B

Interest Accrual Days: 1 day

Stabilizing Agent 

Issue Ratio 21.48%

P/E Ratio 28.21

Company Profile

BenQ Medical Center Group is a leading player in China's private for-profit medical sector, leveraging advanced hospital operation and management experience from Taiwan to build a comprehensive medical brand that combines professional strength with service warmth. Currently, the group operates two core institutions: Nanjing BenQ Hospital and Suzhou BenQ Hospital. With steady development momentum and outstanding industry performance, it has won multiple authoritative recognitions. Based on 2024 total revenue, it not only ranks first among private for-profit general hospital groups in East China with a market share of 1.0%, but also ranks seventh nationwide, holding a 0.4% share of the national market. Moreover, its revenue per bed indicator ranks first among private for-profit general hospital groups nationwide, demonstrating strong operational efficiency and profitability.

As the core vehicle for Taiwan's BenQ AUO Group in the medical field, BenQ Medical Center Group's development trajectory clearly presents a distinctive path of "localization + professional upgrading." Nanjing BenQ Hospital began operations in 2008 and became Jiangsu Province's first private tertiary hospital in 2022, while Suzhou BenQ Hospital started service in 2013 and quickly became an important part of regional high-quality medical resources. As of June 30, 2025, the two hospitals have a combined total floor area of approximately 400,000 square meters, with 1,850 registered beds and a team of over 1,000 doctors, including 35 senior experts from Taiwan and overseas, injecting international perspectives and cutting-edge technical capabilities into medical services. In 2024, the group served over 2 million outpatient visits and performed more than 22,000 inpatient surgeries, achieving steady growth in service scale while ensuring medical quality. The Suzhou branch has become the preferred medical institution for over 90% of Japanese and Taiwanese expatriates in Suzhou.

Facing the wave of medical industry reforms, BenQ Medical Center Group has demonstrated strong adaptability and forward-looking planning. Since Jiangsu Province implemented the DRG payment system in 2022, BenQ Hospital, as a designated medical insurance institution, has responded quickly and fully implemented relevant requirements. The group has established a professional DRG team, strengthened medical record coding training, accurately identified operational optimization opportunities through disease group cost analysis, and developed targeted improvement plans for "loss-making disease types." At the same time, it has promoted the standardization of clinical pathways and established early warning mechanisms for drug and consumable usage, strictly controlling unnecessary medical expenses while ensuring uncompromised treatment quality. In addition, the group has incorporated DRG indicators into departmental and physician performance evaluation systems, encouraging the treatment of high CMI value cases to achieve a virtuous cycle of medical efficiency, cost control, and technical improvement.

In discipline construction and service innovation, BenQ Medical Center Group has formed a distinctive and advantageous development pattern. The orthopedics and hematology departments at Nanjing Hospital have become municipal key specialties, successfully performing the mainland's first Taiwan Tzu Chi bone marrow transplant surgery. The oncology and obstetrics departments at Suzhou Hospital have been rated as municipal key disciplines, while the rehabilitation medicine and nephrology departments have become district-level key specialties. Both hospitals have established comprehensive medical service systems, with Suzhou Hospital building five emergency centers for chest pain, stroke, trauma, critical maternal care, and critical newborns. It has also introduced the craniofacial center team led by Professor Chen Guoding from Taiwan to provide professional treatment for cleft lip and palate patients. The international medical center's multilingual services and the comprehensive application of smart medical systems have fully digitized processes such as registration, payment, and test result inquiries. The widespread deployment of self-service equipment has significantly reduced patient waiting times, with digital operations running through the entire medical service chain.

For the three years ended December 31, 2024, and the first six months of 2024 and 2025:

BenQ Hospital's revenue was approximately RMB 2.336 billion, RMB 2.688 billion, RMB 2.659 billion, RMB 1.330 billion, and RMB 1.312 billion, respectively, with a year-on-year decrease of 1.34% in the first six months of 2025;

Gross profit was approximately RMB 383 million, RMB 508 million, RMB 482 million, RMB 257 million, and RMB 209 million, respectively, with a year-on-year decrease of 18.73% in the first six months of 2025;

Net profit was approximately RMB 90 million, RMB 167 million, RMB 109 million, RMB 63 million, and RMB 49 million, respectively;

Gross margin was approximately 16.40%, 18.89%, 18.13%, 19.30%, and 15.90%, respectively;

Net margin was approximately 3.83%, 6.23%, 4.10%, 4.77%, and 3.71%, respectively.

Source: LiveReport Big Data

As of June 30, 2025, the company had RMB 104 million in cash and RMB 105 million in operating cash flow.

Source: Prospectus

II. Cornerstone Investors

There are 3 cornerstone investors, subscribing for 44.10% of the offering

There are 7 underwriters in total

Sponsors' Historical Performance:

China International Capital Corporation Hong Kong Securities Limited

Citigroup Global Markets Asia Limited

2. Subscription Rate and New Share Analysis

(From AIPO)

Currently, the margin financing has been oversubscribed by 0.78 times.

The required capital and financing amount for each tier of Group A are shown in the following table:

Group B requires a subscription amount of HK$5.9 million. The required capital and financing amount for each tier of Group B are shown in the following table:

According to the prospectus, based on the median offer price of HK$10.51, the total estimated listing expenses are approximately HK$78.1 million, with a fundraising amount of approximately HK$704 million, accounting for about 11.09% of the fundraising amount. The expenses are considered average compared to the fundraising amount.

Should we subscribe to this stock? Let's see my analysis below:

During the pre-IPO private investment phase, BenQ Medical Center welcomed investors such as Mr. Tsai, Leader International, and Shenghong. The funding size, per-share cost, and post-investment valuation data of each financing round clearly outline the company's value growth trajectory from early development to maturity, reflecting the capital market's gradual recognition of its business model and development potential.

January 5, 2009, was a key milestone for BenQ Medical Center Group's Pre-IPO financing, with Mr. Tsai and Leader International completing their investments simultaneously. Mr. Tsai invested US$1.5 million at a per-share cost of US$1.00, while Leader International invested US$11.1 million at the same per-share cost. After this financing, the company's post-transaction valuation reached US$124 million, with both investors receiving a 25.93% discount on the offer price. This discount reflects the risk compensation characteristics of early-stage investments and the capital market's valuation logic for early-stage projects in the private medical sector.

More than two years later, on July 27, 2011, Shenghong became a new investor, completing an investment of US$611,200 at a per-share cost of US$1.20, a 20% increase from the 2009 per-share cost. With the gradual implementation of the company's business and improvements in operational data, the post-investment valuation rose to US$154 million, an increase of approximately 24.8% from 2009. The discount on the offer price for this investment narrowed to 11.11%, indicating the capital market's stronger confidence in BenQ Medical Center Group's growth certainty and a gradual reduction in the risk premium for early-stage investments.

On May 12, 2016, Leader International participated as a seller in a transaction involving US$8.4129 million, with the per-share cost rising to US$1.60, doubling from 2009 and increasing by 33.3% from 2011. At the same time, the company's post-investment valuation saw a significant leap to US$375 million, an increase of over 200% from 2009 and approximately 142.8% from 2011. Notably, the offer price for this transaction shifted from a discount to an 18.52% premium. This change not only reflects the gradual establishment of BenQ Medical Center Group's leading position in the East China private medical market but also the capital market's high recognition of its performance, including its top revenue per bed and leading regional market share, marking the accelerated realization of the company's value.

From the changes in Pre-IPO financing data, BenQ Medical Center Group's per-share cost has continued to rise over time, with post-investment valuation achieving leapfrog growth. Behind this is the company's reliance on Taiwan's medical management experience to achieve dual improvements in service scale and profit efficiency in the operations of Nanjing and Suzhou hospitals. The shift from discounts to premiums in the offer price is direct evidence of the capital market's recognition of the potential of the private for-profit general hospital sector and the core competitiveness of BenQ Medical Center Group.

This stock has an issuance market cap of HK$2.914 billion - HK$3.644 billion and a total fundraising amount of HK$626 million - HK$783 million, which can be considered a small-cap stock. 2025 is a critical inflection point year for the medical industry, driven by multiple factors such as policy, funding, technology, and demand. The industry is transitioning from "scale expansion" to "quality improvement" and from "treatment-focused" to "full-cycle health management." This stock has speculative appeal, depending on the intentions of market makers. In fact, this stock was approved long ago, even before the new 港股新股回撥新規， but it was not listed until now, taking advantage of the year-end. In any case, it's a gamble. Such stocks are far from 港股通， and the best-case scenario is a high-open-low-close race to sell, while the worst-case scenario is 参考遇見小面直接悶殺。