HK IPO Subscription: Analysis and Subscription Strategy for BenQ Medical Center (02581.HK)!

$BENQ HOLDING(02581.HK)$B&K CORP-B(02396.HK) $NANHUA FUTURES(02691.HK) $IMPRESSION DHP(02695.HK)

Basic Information:

Subscription Period: December 12 - December 17, results on the 18th, grey market on the 19th, listing on the 22nd;

Issue Price: 9.34-11.68

Minimum Subscription Fee: 5898.90

1 Lot: 500 shares

Global Offering: 67 million shares

Cornerstone Investors: 3 investors subscribed to 44.1% of the shares

Greenshoe: None

Sponsors: CICC and Citigroup

Allocation Mechanism: Mechanism B, 10% clawback

BenQ Medical Center Group is a medical holding company registered in the Cayman Islands. The company is positioned as a comprehensive private medical institution, providing a wide range of medical services covering internal medicine, surgery, obstetrics and gynecology, pediatrics, oncology, and rehabilitation medicine. According to Frost & Sullivan data, based on total revenue in 2024, BenQ Medical Center ranked first in the East China region among private for-profit comprehensive hospital groups with a market share of 1.0%. Nationwide, the company ranked seventh with a market share of 0.4%. Notably, based on revenue per bed in 2024, BenQ Medical Center ranked first among all private for-profit comprehensive hospital groups in mainland China.

The company currently owns and operates two comprehensive hospitals located in Nanjing and Suzhou. As of the end of June 2025, the total floor area of the two hospitals was approximately 400,000 square meters, with 1,850 registered beds and a team of over 1,000 doctors.

Financial Performance:

BenQ Medical Center's financial data shows that the company's revenue from 2022 to 2024 was RMB 2.336 billion, RMB 2.688 billion, and RMB 2.659 billion, respectively;

Annual profits for the same period were RMB 89.6 million, RMB 168 million, and RMB 109 million. In the first half of 2025, the company achieved revenue of RMB 1.312 billion, a slight decrease of 1.34% year-on-year; net profit was RMB 49 million.

Gross margin increased from 16.4% in 2022 to 18.9% in 2023, and slightly decreased to 18.1% in 2024.

Use of Proceeds:

74.3% for expansion and upgrading of existing hospitals,

16.0% for potential investment and acquisition opportunities,

8.0% for upgrading the "Smart Hospital" system,

1.8% for working capital.

BenQ Medical Center has introduced three cornerstone investors: Herong Technology, Hefu China, and Suzhou Zhanxing Investment, accounting for approximately 44.1% of the shares offered.

BenQ Medical Center adopts Mechanism B, 10% clawback;global offering of 67 million shares, Hong Kong offering of 6.7 million shares, one lot is 500 shares, totaling 13,400 lots;Tail A subscription requires HK$470,000 in principal, Tail B subscription requires HK$590,000 in principal;current popularity is less than 10 times, conflicting with Impression Da Hong Pao, Nanhua Futures,Huaren Biology-B, Easy Health, Hansi Aite-B, and Nuobikan Capital,which will disperse capital arrangements; it is estimated that the final should be around 50 times.Sponsored by CICC and Citigroup, with cornerstone investors but no greenshoe, CICC's historical sponsorship projects are acceptable, while Citigroup is relatively average. Based on the median issue price of HK$10.51, BenQ Medical Center's market value is approximately HK$2.914 billion to HK$3.644 billion, with a P/E ratio of 28.21 times, compared to Huarun Medical's P/E ratio of about 35 times in the same industry, the valuation is lower;

Should You Apply:

Everyone knows that hospitals will see growth in medical demand, as people will have various health issues at any given time; there will also be policy support, such as "Internet + Medical Health," and online consultation models will become more common in the future;

However, there will also be medical disputes. Currently, BenQ Medical Center still has unresolved medical disputes, and with four IPO applications, cash flow is likely not optimistic. Market competition is also intense, and the fundamentals are relatively average. Although it has the advantage of being the leading private medical group in East China and high revenue per bed, and the pricing range spans 25%, there may still be gains at the lower end, but it's hard to say at the upper end. Overall: I won't participate, among these newly listed stocks, there's nothing outstanding, not many highlights;

BenQ Medical Center conflicts with Impression Da Hong Pao, Nanhua Futures, Huaren Biology-B, Easy Health, Hansi Aite-B, and Nuobikan Capital, which will disperse capital arrangements;

Among the four new stocks—Impression Da Hong Pao, Nanhua Futures, BenQ Medical Center, and Huaren Biology-B,only apply for Impression Da Hong Pao!!!

Hansi Aite-B and Nuobikan (apply after Zhihui Mining funds are released)