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Likes Received【HK IPO Subscription】Tianxing Medical, a leading domestic sports medicine device company
Tianxing Medical is a China-based medical device company focused on clinical solutions for sports medicine. According to CIC data, based on 2024 sales revenue, we are the fourth largest provider of sports medicine implants and devices in China, with a market share of approximately 6.5% of China's sports medicine implant and device market, and also the largest domestic provider of sports medicine implants and devices. Relying on our self-developed implants, active equipment, related consumables, and surgical tools, we provide treatment for soft tissue injuries such as rotator cuff, ligaments, and meniscus in the shoulder, knee, hip, foot/ankle, elbow, and hand/wrist, as well as comprehensive solutions for sports rehabilitation and prevention.
The company's IPO subscription period began on April 24th, with an issue price of HKD 98.5 per share, 50 shares per lot, a minimum subscription of HKD 4,974.67, a market capitalization of HKD 5.401 billion, and an issuance quantity of 8.4218 million shares. It belongs to the medical equipment and supplies industry, with no greenshoe option.
The sponsors are CITIC Securities and CCB International. The first-day gain rate for projects sponsored by CITIC Securities in the past 2 years is 80.76%, and for Haitong International in the past 2 years is 84.61%. The overall track record of the sponsors is very good.
There are a total of 4 cornerstone investors, including JSC International Investment Fund SPC, OrbiMed Asia Partners IV (Hong Kong) Limited, Mega Prime (managed by the Greater Bay Area Development Fund), and Poly Platinum (managed by the Greater Bay Area Development Fund). The cornerstones have subscribed to a total of USD 37 million, accounting for 34.71% of the total issuance, which is a decent cornerstone coverage.
Over the past decade, the Chinese sports medicine implant and device market has been dominated by international players. However, domestic brands have continuously increased R&D investment to improve product quality and effectiveness, such as adopting advanced materials and precision manufacturing technologies, and developing innovative solutions that meet local market needs. Currently, Tianxing Medical ranks fourth among all brands in the industry and first among domestic brands.
The company's revenue from 2023 to 2025 was RMB 239 million, RMB 327 million, and RMB 403 million respectively, with a year-on-year revenue growth of 23.12% in 2025. Net profit from 2023 to 2025 was RMB 57.112 million, RMB 95.389 million, and RMB 137 million respectively, with a year-on-year net profit growth of 43.59% in 2025.
Based on the issue price, the market cap of HKD 5.401 billion corresponds to an issuance of HKD 830 million, with an issuance ratio of 15.36%. With cornerstones locking up 34.71%, the free float is HKD 542 million.
This issuance adopts Mechanism B under the new HKEX IPO rules. The initial public offering tranche is 10%, with no clawback mechanism. The current subscription multiple is 54.59 times, and subscription interest is decent. There are a total of 16,844 lots, which is not a large supply, so the winning rate will be relatively low.
Subscription Strategy:
Tianxing Medical is a leading domestic sports medicine device company with a 6.5% market share. The sponsors are CITIC Securities and CCB International, and their overall track record is very good. Four cornerstone investors have subscribed to a total of USD 37 million, accounting for 34.71% of the total issuance, which is decent cornerstone coverage. The net profit grew 43.59% year-on-year in 2025, indicating good company performance. This issuance adopts Mechanism B under the new HKEX IPO rules. The initial public offering tranche is 10%, with no clawback mechanism, and the free float is HKD 542 million. The current subscription multiple is 2.51 times, and subscription interest is decent. There are a total of 16,844 lots, which is not a large supply, so the winning rate will be relatively low. Overall, the quality is acceptable, and it's worth applying for. I plan to participate in the subscription after funds are released from previous IPOs!
My views are my own and do not constitute any investment advice. The stock market carries risks; invest with caution!
$STAR SPORTS MED(01609.HK)
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