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Rate Of Return[HK IPO] Tongrentang Medical & Healthcare lowered its fundraising target and added cornerstone investors, showing more sincerity this time.
Tong Ren Tang Medical Care is a strategic subsidiary of Tong Ren Tang focusing on Traditional Chinese Medicine (TCM) medical services in China. It provides comprehensive TCM medical services to individual clients, standardized management services to institutional clients, and offers various health products and other products. We combine "medical care" and "wellness" to provide modern, customized TCM medical services, integrating TCM drug therapy and non-drug therapies, and offer suitable treatment plans for clients through standardized management to meet their diverse needs.
The company started its IPO subscription on June 26, with an issue price range of HKD 5.48~6.21, 500 shares per board lot, a minimum subscription amount of HKD 3,136.31, a market cap of HKD 2.55~2.89 billion, and an issuance of 108 million shares. It belongs to the medical and medical aesthetic services industry and has a greenshoe option.
The sponsor is China International Capital Corporation (CICC). The first-day gain rate of projects sponsored in the past 2 years is 73.68%, and the overall performance of the sponsor is quite good.
There are a total of 3 cornerstone investors, including Airport Capital, Aurora SF, and CICCFT; the cornerstones subscribed for a total of HKD 296 million, accounting for 46.79% of the total issuance, which is a relatively high proportion.
According to Frost & Sullivan's data, based on the total number of outpatient visits and inpatient admissions in 2025, Tong Ren Tang Medical Care ranked first among all TCM hospital groups in China's non-public TCM hospital medical services industry.
The company's revenues from 2023 to 2025 were RMB 1.153 billion, RMB 1.175 billion, and RMB 1.171 billion respectively, with a year-on-year revenue growth of -0.23% in 2025; net profits from 2023 to 2025 were RMB 42.634 million, RMB 46.197 million, and RMB 33.75 million respectively, with a year-on-year net profit growth of -26.94% in 2025.
Based on the median issue price, the market cap is HKD 2.72 billion, with an issuance of HKD 631 million, an issuance ratio of 23.2%, and cornerstone lock-up of 46.79%, resulting in a free float of HKD 336 million.
This issuance adopts the new Hong Kong stock IPO regulation's Mechanism B, with an initial public offering share of 10% and no clawback mechanism. The current subscription multiple is 23.97 times, and subscription interest is decent. There are a total of 21,631 board lots, and the supply is not large, so the winning rate will be relatively low.
Tong Ren Tang Medical Care went public in March but was later terminated. Now it's coming to the Hong Kong stock market for listing again. Compared with the last time, the following adjustments have been made this time, showing more sincerity.
Subscription Strategy:
Tong Ren Tang Medical Care specializes in opening offline TCM institutions, focusing on TCM medical consultations, chronic disease management, and other services. It is the fourth listed company under Tong Ren Tang. The sponsor is CICC, and the overall performance of the sponsor is quite good. Three cornerstone investors subscribed for a total of HKD 296 million, accounting for 46.79% of the total issuance, which is a relatively high proportion. The net profit in 2025 grew year-on-year by -26.94%, indicating a decline in company performance. This issuance adopts Mechanism B, with an initial public offering share of 10% and a free float of HKD 336 million. Subscription interest is decent. There are a total of 21,631 board lots, and the supply is not large, so the winning rate is low. Tong Ren Tang Medical Care went public in March but was later terminated. This time, compared to the last, the valuation has been lowered, and cornerstone investors have been added, showing more sincerity. However, the overall valuation is still relatively expensive within the industry, and the overall quality is average. I plan to participate with a small subscription of two board lots!
My remarks represent personal views only and do not constitute any investment advice. The stock market carries risks; invest with caution!
$TONGRENTANGCARE(02667.HK)
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