--- title: "The annual report performance increase cannot bring back the stock price rebound. When will CHUNLI MEDICAL allow Hong Kong Stock Connect funds to \"break even\"?" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/276027403.md" description: "On January 29th, CHUNLI MEDICAL released an announcement regarding the expected increase in annual performance for 2025, estimating the net profit attributable to shareholders of the parent company to be between RMB 245 million and RMB 288 million, a year-on-year increase of 96.01% to 130.41%. The net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses is expected to be between RMB 230 million and RMB 270 million, a year-on-year increase of 142.80% to 185.11%. Although the performance forecast indicates an improvement in the main business, the stock price reacted tepidly, falling 2.87% the next day and continuing to decline, reaching a new low of HKD 13.47 for the year" datetime: "2026-02-16T03:11:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276027403.md) - [en](https://longbridge.com/en/news/276027403.md) - [zh-HK](https://longbridge.com/zh-HK/news/276027403.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/276027403.md) | [English](https://longbridge.com/en/news/276027403.md) # The annual report performance increase cannot bring back the stock price rebound. When will CHUNLI MEDICAL allow Hong Kong Stock Connect funds to "break even"? On January 29th, after the market closed, CHUNLI MEDICAL (01858) released its annual performance forecast for 2025. The announcement indicated that, based on preliminary calculations, CHUNLI MEDICAL expects to achieve a net profit attributable to shareholders of between 245 million yuan and 288 million yuan for the year 2025, representing a year-on-year increase of 96.01% to 130.41%. Meanwhile, the company's net profit attributable to shareholders after deducting non-recurring gains and losses is expected to be between 230 million yuan and 270 million yuan, a year-on-year increase of 142.80% to 185.11%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260216/1771211234619964.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) A major highlight of this performance forecast is that the growth rate of CHUNLI MEDICAL's net profit attributable to shareholders after deducting non-recurring gains and losses significantly exceeds that of its net profit attributable to shareholders, indicating that the company has, to some extent, shed reliance on one-time gains and losses for profit support, with improvements in its main business becoming the key to its profit growth. However, the market's response to this performance forecast was relatively muted. According to Zhitong Finance APP, the day after the performance forecast was released, CHUNLI MEDICAL's stock price fell sharply, closing down 2.87%. Subsequently, the company's stock price continued to decline. On February 12th, CHUNLI MEDICAL's stock price on the Hong Kong market hit a low of HKD 13.47 during trading, marking a new low for the year. In fact, since reaching a peak of HKD 20.49 in early November last year, CHUNLI MEDICAL's stock price has been on a downward trend, with a maximum price fluctuation exceeding 30% in less than four months. ## Good Performance but Unexpectedly Poor Market Reaction? In this performance forecast, CHUNLI MEDICAL pointed out that the company's annual net profit attributable to shareholders and net profit attributable to shareholders after deducting non-recurring gains and losses both achieved significant growth compared to the same period last year. The reasons cited were that "during the reporting period, the growth potential of various product lines gradually released after being included in centralized procurement, while the company continued to implement its international development strategy and steadily advanced its international business layout, promoting stable and healthy growth in operating revenue through both internal and external efforts." In short, the company's strong annual profit performance is attributed to the clearing effects of centralized procurement and the development of international business. However, this was already anticipated by secondary market investors. Zhitong Finance APP learned that after three years of centralized procurement sweeping the orthopedic consumables industry, many domestic orthopedic leaders reported a rebound in performance in the first quarter of last year, with CHUNLI MEDICAL achieving its first positive profit growth after a decline in the first quarter: during that period, it achieved revenue of 230 million yuan (+3.6%) and a net profit attributable to shareholders of 58 million yuan (+5.2%). Subsequently, CHUNLI MEDICAL's performance showed a sustained recovery. For example, in the 25Q9 quarter, CHUNLI MEDICAL achieved operating revenue of 756 million yuan, a year-on-year increase of 48.75%; the net profit attributable to shareholders of the listed company was 192 million yuan, a substantial year-on-year increase of 213.21%. Looking solely at the third quarter, the company achieved operating revenue of 268 million yuan, a year-on-year increase of 109.51%; the net profit attributable to shareholders turned profitable with 77.0619 million yuan, a year-on-year turnaround Looking at the market from last year to the present, benefiting from last year's bull market in Hong Kong stocks for innovative drugs and medical devices, CHUNLI MEDICAL's stock price saw significant increases in May, June, and July of last year, with gains of 17.69%, 12.18%, and 29.85%, respectively. During this process, its overall trading volume fluctuated significantly, reaching 34.5134 million shares, 28.5463 million shares, and 50.7748 million shares. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260216/1771211260196529.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) However, afterwards, CHUNLI MEDICAL entered a three-month period of sideways consolidation. From July 24 to October 30, its stock price increased by only 0.2% within this range. During this period, the average cost of shares held in the market continued to rise to HKD 15.88. Compared to early August this year, the proportion of low-cost shares at the bottom has significantly decreased. During this sideways consolidation period, there was a noticeable change in the main capital of CHUNLI MEDICAL. In the first week of September last year, its main capital reversed the previous trend of net outflows and slight inflows, with a net inflow of HKD 32.3101 million. Subsequently, in September and October, there was an overall net inflow of funds, and the main capital in the market chose to start before and after the company's Q3 2025 financial report was disclosed. On October 15, CHUNLI MEDICAL's stock price broke away from the lower Bollinger Band and began to rise. On October 15 and 16, the main capital in the market raised the stock price by 4.98% and 3.47%, respectively, with a daily trading volume of less than 2 million shares, testing the "water temperature" of the market. Then, on October 17, it confirmed a "stay-in" attitude with a volume reduction and subsequently started a significant increase in volume. From October 20 to November 3, the company's stock price fluctuated with a cumulative increase of 32.09%. It is worth mentioning that on October 31 last year, CHUNLI MEDICAL closed up 14.04%, with a single-day trading volume of 20.5379 million shares and a turnover rate of 21.59%, indicating that the main capital began to take profits and exit during the upward process. Considering the previous market trends, the reason for CHUNLI MEDICAL's stock price decline from November last year to now may be due to the continuous correction brought about by the exit of the main capital. The reason the market did not show significant positive feedback after CHUNLI MEDICAL disclosed its annual performance forecast may be that there was no significant deviation from expectations in this performance forecast, and the company's profit growth had already been reflected in the previous stock price trends. ## Is Hong Kong Stock Connect Capital the Main Seller? From a valuation perspective, after three months of stock price decline, CHUNLI MEDICAL's overall valuation has once again fallen below the industry average level. Data shows that as of now, the company's PE ratio is only 19.12 times, which is lower than the industry average PE level of 20.48 times, and also 6% lower than the company's average PE valuation over the past three months, indicating a significant undervaluation level. !\[image.png\](https://img.zhitongcaijing.com/image/20260216/1771211277951275.png? Generally speaking, high-performing undervalued targets are often important choices for Hong Kong Stock Connect funds. There have been many cases of such funds bottom-fishing these targets, but for Chunli Medical at present, Hong Kong Stock Connect funds are not only not the main force for bottom-fishing but are even the "main force for selling." According to Zhitong Finance APP observations, in the past 60 days, the top three net buyers of Chunli Medical were HSBC Hong Kong, Morgan Stanley, and Citibank, with net purchases of 1.5067 million shares, 862,800 shares, and 597,600 shares, respectively; the top three sellers were Hong Kong Stock Connect (Shenzhen), Hong Kong Stock Connect (Shanghai), and Huatai Securities, with net sales of 2.9785 million shares, 1.0755 million shares, and 337,800 shares, respectively. It is not difficult to see that the total net selling volume of the two major Hong Kong Stock Connect channels reached 4.054 million shares, accounting for 92.31% of the total net buying volume of the top three institutions, clearly indicating that they are the main selling force during this period. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260216/1771211291714860.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) From the changes in the shareholding ratio of Hong Kong Stock Connect funds, it seems that there has been a significant change in attitude towards Chunli Medical during this period. Data from Zhitong Finance APP shows that from mid-November last year to the end of last year, during the continuous fluctuation and decline of Chunli Medical's stock price, the buying willingness of Hong Kong Stock Connect funds was quite evident. During this period, the shareholding ratio of Hong Kong Stock Connect increased as the company's stock price fell, reflecting the typical left-side trading logic of Hong Kong Stock Connect funds. By December 31, 2025, the shareholding ratio of Hong Kong Stock Connect in Chunli Medical reached a peak of 47.77%. However, at the beginning of 2026, with a rebound in Chunli Medical's stock price, the shareholding ratio of Hong Kong Stock Connect funds suddenly plummeted. On January 16 of this year, the shareholding ratio fell to 43.47%, a drop of over 4 percentage points within half a month. Although there was a rebound in this ratio during the subsequent technical decline of Chunli Medical's stock price, since February of this year, the investment strategy of Hong Kong Stock Connect funds in Chunli Medical has shown a tendency towards right-side trading based on trend operations. At this time, the shareholding ratio had dropped to 43.16%, and based on the cost of holdings, Hong Kong Stock Connect funds had incurred losses of over 10%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260216/1771211406913454.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) For Chunli Medical, after the impact of centralized procurement is cleared, both the entire orthopedic device industry and the company are expected to see a performance rebound, making it difficult to create an expectation gap. Currently, the market seems to pay more attention to Chunli Medical's overseas market expansion. In the first half of last year, Chunli Medical's overseas revenue accounted for 40% If the annual report disclosed later shows impressive overseas performance, it may become the key to a new round of stock price rebound ### 相關股票 - [CHUNLI MEDICAL (01858.HK)](https://longbridge.com/zh-HK/quote/01858.HK.md) ## 相關資訊與研究 - [This Dividend King Is Down 26%. When Will It Bounce Back?](https://longbridge.com/zh-HK/news/281265645.md) - [Shares of China AI 'tiger' Zhipu surge 35% after revenue doubles in first earnings report](https://longbridge.com/zh-HK/news/281314542.md) - [Trump to sign order to pay tens of thousands of DHS employees](https://longbridge.com/zh-HK/news/281556389.md) - [Blanche: I never heard Trump say Bondi exit ‘had anything to do with the Epstein files’](https://longbridge.com/zh-HK/news/281637342.md) - [China's detentions of Panama-flagged vessels raise concerns, Rubio says](https://longbridge.com/zh-HK/news/281541796.md)