[HK IPO Subscription] Tianxing Medical Subscription Strategy
I. Basic Information
$STAR SPORTS MED(01609.HK) is a China-based medical device company focused on clinical solutions for sports medicine...
Relying on its self-developed implants, active devices, related consumables, and surgical tools, the company provides treatment for soft tissue injuries such as rotator cuff, ligament, and meniscus, as well as comprehensive solutions for sports rehabilitation and prevention...
According to CIC data, based on 2024 sales revenue, it is the fourth-largest provider of sports medicine implants and devices in China, with a market share of approximately 6.5% of the Chinese sports medicine implant and device market, and also the largest domestic provider of sports medicine implants and devices...
II. IPO Information
Company Name & Code: Tianxing Medical (01609.HK)
Offer Price: 98.50KD
Minimum Subscription Fee: 4,974.67 HKD (1 board lot of 50 shares)
Subscription Period: April 24 to April 29, closing next Wednesday
Allotment Announcement: April 30
Listing: May 5
Shares Offered: 8.4219 million shares, representing 15.36% of total share capital
Allocation Mechanism: Mechanism B
Market Cap: 5.401 billion HKD
Green Shoe: None...
Cornerstone Investors: 4 cornerstone investors subscribed for 34.7% in total, typical situation
Sponsors: CITIC, CCB
III. Fundamental Situation
The company's revenue for 2022 to 2025 was RMB 147 million, RMB 239 million, RMB 327 million, and RMB 403 million respectively, with a compound annual growth rate of 40%. The main reason for the rapid growth was the continuous volume increase after implant products were included in the volume-based procurement plan, with sales volume surging from 262k units to 710k units. Revenue from this segment accounted for as high as 77.1%, serving as the core pillar of performance....
Net profit for 2022-2025 was RMB 40 million, RMB 57 million, RMB 95 million, and RMB 137 million respectively, tripling over three years. The company's profitability is quite good, mainly due to the scale management brought about by the rapid expansion of its revenue scale.
IV. Subscription Strategy
1. The company's fundamentals are very good, and the quality is quite decent...
2. The concept isn't bad either, medical devices....
3. The company is issuing under Mechanism B, with a total of 16.8k board lots in Groups A and B combined. The float isn't large, and currently, there's only this one IPO. Recently, no new stock has broken its issue price, so the winning rate might hit a new low....
4. No green shoe, but there are cornerstone investors subscribing for 35%, typical situation...
5. In terms of valuation, based on 2025 performance, the company's P/E is around 39.4x, which isn't too expensive for a medical device company...
6. There are no other new stocks at the moment, and the valuation is fairly reasonable. Brother Er Gou intends to go all in with margin. However, considering the cost, I'll go all in with margin in one account and just apply for cash in the other two...
Subscription Score: 7 points (9-10 points: go all in with margin in full position; 7-8 points: can use some margin; 6 points: try a sneaky small position; 5 points: forget it, don't bother)
Of course, this is just Brother Er Gou's own operational strategy and does not constitute any investment advice....
Follow Brother Er Gou for a triumphant journey in Hong Kong stock IPO subscriptions ~~~
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