他山财经
2026.04.26 13:24

[Hong Kong Stock IPO Analysis] Tianxing Medical

Let's talk about the newly listed Hong Kong stock - Tianxing Medical.

  • Company and Industry Introduction: Tianxing Medical is a leading domestic sports medicine device manufacturer. For example, if you sprain your knee playing basketball, tear your cruciate ligament playing soccer, or have a rotator cuff injury playing badminton requiring arthroscopic surgery, the "small nails and sutures" the doctor uses—suture anchors, interference screws, meniscus repair systems, endoscopic shavers—these implants and surgical instruments—that's what Tianxing does. As of the end of 2025, its products have entered over 3,000 hospitals, including over 1,000 tertiary hospitals, with cumulative sales exceeding 2 million units. The company operates in the Chinese sports medicine equipment market, which is expected to grow at a 16.5% CAGR from 2024 to 2030. The company has also entered the smart rehabilitation segment (expected 47.5% CAGR, reaching 22.9 billion RMB by 2030). In terms of market structure, import substitution is the core theme—currently, four of the top five players in China's sports medicine market are foreign companies (Stryker, Johnson & Johnson, Smith & Nephew, Arthrex, combined 59.3%). Tianxing ranked 4th in 2024 with a 6.5% market share, and is the top domestic brand. Centralized procurement for sports medicine began in May 2024, with the foreign share rapidly dropping from 80% to 50%, opening a window for domestic substitution. The company is in a real, growing segment and is the true domestic leader, but the overall market size is not particularly large.
  • Financial Performance: The financial statements are excellent. Revenue: 2023/2024/2025 were 239 million, 327 million, and 403 million RMB respectively, with YoY growth of 37.1% and 23.1%—growth is slowing but the absolute figures remain solid. Overseas revenue skyrocketed from 6.67 million RMB in 2023 to 70.27 million RMB in 2025, with its share jumping from 2.8% to 17.4%, making it a new growth engine. Net Profit: IFRS net profit for 2023/2024/2025 was 57 million, 95 million, and 137 million RMB respectively, a 2.4x increase over two years. Non-IFRS adjusted net profit was 58 million/96 million/154 million RMB (mainly adjusted for share-based compensation and listing expenses, both relatively small amounts). The company is genuinely profitable. Gross Margins: 74.3%/69.6%/74.1%. In 2024, margins dipped temporarily as 14 out of 19 implant products were included in centralized procurement, but rebounded in 2025 due to economies of scale and cost control, proving the impact of centralized procurement has been largely digested.
  • Valuation: At the maximum issue price of HKD 98.50, the market cap is approximately HKD 5.401 billion, equivalent to about RMB 4.753 billion. Based on 2025 revenue of 403 million RMB, the PS ratio is about 11.8x. Based on 2025 IFRS net profit of 137 million RMB, the PE ratio is about 34.7x. Based on Non-IFRS adjusted net profit of 154 million RMB, the adjusted PE is about 30.9x. Compared to the last pre-IPO round (Series C in Jan 2023, valuation ~RMB 3.5 billion), this IPO valuation represents a premium of about 36%. Overall, the valuation is on the expensive side but not outrageous. Comparable A-share companies are mainly leading orthopedic consumables players: Weigao Orthopedics (688161, 2025E PE ~41x), Dabo Medical (002901, 2025E PE ~47x), Chunli Medical (688236, 2025E PE ~40x), Sanyou Medical (688085, 2025E PE ~70x). From a PE perspective, Tianxing's 34.7x/adjusted 30.9x is actually cheaper than most A-share orthopedic leaders, reflecting the Hong Kong stock discount and the new listing discount (there are no pure comparable sports medicine plays in Hong Kong). But differences must be noted: Tianxing's revenue scale is only 400 million RMB, while Weigao Orthopedics and Dabo Medical are in the 1.5-2 billion RMB range. Tianxing is much smaller but growing faster (2025 revenue +23% vs. single-digit to low-teens growth for A-share orthopedic leaders). Tianxing's 74.1% gross margin leads across the board (A-share orthopedic leaders typically 55-65%), reflecting the high-margin nature of the sports medicine niche.
  • IPO Details: The company is a "first-time listing." The offering mechanism is Type B (public offering ~10%, international offering ~90%). The public offering is about 16,844 board lots, a very small float. The board lot subscription fee at HKD 98.50 is HKD 4,974.7. No greenshoe. Three cornerstone investors: JSC International (representing Shenghai SP, Yizhuang state-owned background), OrbiMed Asia Partners IV (OrbiMed, a top global healthcare fund, existing shareholder additional subscription), and Greater Bay Area Homeland Investments Limited. They subscribed for a total of about USD 37 million (~HKD 290 million), accounting for 35% of the total offering. The cornerstone lineup and proportion are decent. Interest accrual period is 1 day.
  • Conclusion: The performance is good, the valuation isn't expensive, the number of lots is relatively small, and considering the recent positive market sentiment, I will apply.

$STAR SPORTS MED(01609.HK)

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