Hong Kong stock market movement: STAR SPORTS MED (01609) fell more than 5%, down 5.51% as of press time to HK$75.4, with a turnover of HK$2.6198 million.

On the news front, 2.9229 million restricted shares held by the four cornerstone investors of STAR SPORTS MED will officially be unlocked on November 5. These shares account for 34.7% of the global offering and 5.34% of the company's total issued share capital.

The company listed on May 5 this year at HK$98.50, with its intraday high reaching HK$299 on the first day. It has since continued to decline steadily, hitting a historic low of HK$74.25 on October 2.

Analysts pointed out that the transition from the stellar performance on its debut to the current slump below the IPO price is the result of four factors working together: overheated market sentiment, a relatively small free float, an overstretched valuation level, and a return to intrinsic value.

It is worth noting that thanks to strong sales volume of its core product implants, STAR SPORTS MED has seen rapid revenue growth in recent years. However, behind this high growth, STAR SPORTS MED is facing the impact of the volume-based procurement policy.

According to its prospectus, since 2024, under the nationwide volume-based procurement of sports medicine implants, 14 of the company's 19 implant products have been included. Affected by this, the average selling price of implants dropped from RMB 711.9 per unit in 2023 to RMB 446.3 per unit in 2024, a decrease of 37.3%.