Tianxing Medical | Hong Kong Stock IPO Strategy

❑.Company Profile:
Beijing Tianxing Medical Co., Ltd. was established in Beijing in 2017, focusing on clinical solutions in sports medicine. The company provides a full chain of products and services for soft tissue injuries of joints such as shoulders, knees, hips, ankles, elbows, and wrists, from surgical repair to postoperative rehabilitation.
Founder Dong Wenxing holds a Ph.D. from Harbin Institute of Technology and previously worked at the Medical Device Technical Review Center of the National Medical Products Administration. The core team has extensive experience in the medical device field. Currently, the company has over 380 employees and is recognized as a national high-tech enterprise and a "Little Giant" enterprise specializing in niche and innovative technologies.
❑.Product Series:
The company's product matrix is complete, with 63 approved products as of the latest feasible date, including 27 Class III medical device registration certificates and 25 Class II certificates, leading in certification numbers within China's sports medicine field.
Mainly divided into three categories:
Implants (main revenue contributor, accounting for about 76-78%): Suture anchors with wires, interface screws, titanium plates with loops, meniscus suturing systems, etc., used for rotator cuff, ligament, and meniscus repair. Several products are domestically first-in-class (such as fully sutured anchors and carbon fiber composite PEEK wire anchors).
Surgical equipment and related consumables: Plasma radiofrequency ablation devices, arthroscopic shaving systems, wireless handheld imaging devices, disposable electrodes, and blades.
Surgical tools and regenerative repair products: Suturing devices, PRP preparation kits, joint soft tissue regeneration and repair materials, etc.
❑.Performance:
•2023: The company achieved operating revenue of 238.5 million RMB, net profit of 57.1 million RMB, with a gross profit margin of 74.3%. Implant sales reached 262k units, with rapid growth laying a solid foundation.
•2024: Operating revenue increased to 327.1 million RMB (up 37%), net profit reached 95.4 million RMB, with a gross profit margin of 69.6%. Mainly due to inclusion of implants in volume-based procurement, leading to lower average selling prices, but a significant increase in sales volume (560k implants) offset some pressure.
•2025: Operating revenue rose to 402.8 million RMB (up 23%), net profit of 137 million RMB, gross profit margin rebounded to 74.1%. The margin recovery is attributed to cost control, scale effects, supply chain optimization, and rapid growth of overseas business, with steady performance growth. Implants remain core, with overall gross margin maintained above 70%. High capacity utilization and increased inventory reflect strong expansion demand.
❑.IPO Information:
Allocation mechanism: B-share mechanism
Industry: Medical Devices
Issue price per share: HKD 98.5 / share
Lot size: 50 shares
Entry cost: approximately HKD 4,974.67
Cornerstone share: 34.71% (about USD 37 million)
Sponsors: CITIC Securities, CCB International
Total public lot count: 16,844 lots
Green shoe / Stabilization agent: None
Hong Kong market cap: approximately HKD 262k
Circulating market cap: approximately HKD 826 million
T-Share: 4.97 million; B-Share: 5.96 million
❑.Dahua Comments:
Tianxing Medical is one of the fastest-growing companies in the domestic sports medicine sector. No green shoe option, the cornerstone lineup is average, with only 16,844 lots in total, so the chance of winning is relatively low. However, it’s worth noting that the two sponsors have performed well in recent IPO projects.
Tianxing Medical involves small lot sizes, which may lead to higher volatility. Check the market sentiment and share your strategy in the group on the last day.
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