This year, the A-share market has welcomed 16 new listings, with medical device companies accounting for four of them, marking a notable highlight in the IPO market at the start of the year. Among the newly listed medical device firms are Beixin Life, a newcomer to the STAR Market, as well as Haisheng Medical, Aide Technology, and Aishelun from the Beijing Stock Exchange. All four stocks surged over 170% on their first trading day, reflecting strong capital market confidence in the medical device sector.

The impressive stock performance is underpinned by solid fundamentals. Beixin Life, which listed under the fifth set of listing criteria on the STAR Market, is projected to turn a profit last year after previous losses. The other three companies on the Beijing Stock Exchange also reported growth in their 2022 earnings. Currently, the pipeline of medical device companies preparing for IPOs remains robust. Two firms in the artificial heart field—Suzhou Tongxin Medical Technology and Shenzhen Core Medical Technology—are competing to become the first listed domestic artificial heart company.

The four newly listed medical device stocks enjoyed strong debuts. Beixin Life, which began trading on the STAR Market on February 5, stood out with a first-day closing gain of 183.33%. During the session, its share price surged over 200%, with total turnover reaching 1.409 billion yuan and market capitalization briefly exceeding 20 billion yuan. Haisheng Medical, the latest medical device listing, debuted on the Beijing Stock Exchange on February 12, closing up 172.86%. Aide Technology and Aishelun, which listed on February 10 and January 21, respectively, rose 176.79% and 175.59% on their first trading days.

However, after their initial surge, these stocks experienced some pullback. As of now, their cumulative gains since listing range between 120% and 150%. At the close on February 13, Beixin Life, Haisheng Medical, Aide Technology, and Aishelun were trading at 39.48 yuan, 29.56 yuan, 18.77 yuan, and 36.07 yuan per share, with market capitalizations of 16.46 billion yuan, 2.226 billion yuan, 2.217 billion yuan, and 2.441 billion yuan, respectively.

The four companies operate in distinct medical device niches. Beixin Life, the only one listed on the STAR Market, focuses on the R&D, production, and sales of innovative precision medical devices for cardiovascular disease diagnosis and treatment. Notably, it is the first domestic medical device company in China to offer a combined product portfolio for intravascular functional FFR and imaging IVUS, filling a gap in the domestic market and reducing reliance on imported products for coronary artery disease diagnosis.

The three Beijing Stock Exchange-listed firms each have their specialties. Haisheng Medical has over two decades of experience in anesthesia medical consumables, specializing in the R&D, production, and sales of anesthesia-related medical devices. Aide Technology provides professional solutions in trauma, spine, and wound care within the orthopedic medical device industry. Aishelun is dedicated to the R&D, design, production, and sales of personal care and medical products.

Despite operating in different segments, all four companies delivered strong financial results in 2022. Beixin Life, which listed under the STAR Market’s fifth set of criteria, had been loss-making prior to its IPO but is expected to report a profit for last year. In its prospectus, the company projected 2022 revenue of 520–560 million yuan, up 64.24%–76.88% year-over-year, with net profit attributable to shareholders of 78–88 million yuan, an increase of 278.91%–301.85%.

Haisheng Medical, Aide Technology, and Aishelun also posted earnings growth in 2022. Haisheng Medical reported revenue of 345 million yuan, up 13.68% year-over-year, and net profit of approximately 85.82 million yuan, a 21.01% increase. Aide Technology achieved revenue of about 302 million yuan, rising 9.74%, with net profit reaching around 77.75 million yuan, up 15.82%. Aishelun estimated revenue of 890–940 million yuan, an increase of 28.65%–35.89%, and net profit of 89.29–98.48 million yuan, growing 10.63%–22.01%.

According to Lin Xianping, an associate professor at Zhejiang University City College and deputy secretary-general of the China Urban Expert Think Tank Committee, medical device companies accounting for a quarter of new A-share listings this year, along with their strong first-day gains, indicate the sector is in a high-growth phase with increasing capital attention.

Lin added that the sharp first-day rallies stem from the essential demand and growth potential of the sector, improved corporate earnings, clear R&D pipelines, and favorable market sentiment, collectively driving valuation premiums.

The momentum for medical device IPOs continues. Several companies are currently in the IPO pipeline, including Guangdong Boma Medical Technology, which is applying for a listing on the ChiNext Board and is the only medical device firm in line for a Shenzhen listing. Boma Medical focuses on the R&D, production, and global sales of high-performance vascular interventional devices and is a leading provider of solutions for complex vascular diseases. It aims to raise 1.7 billion yuan in its IPO for projects including its global headquarters and production base upgrades.

In the artificial heart segment, Core Medical and Tongxin Medical are both seeking listings on the STAR Market, vying to become the first publicly traded domestic artificial heart company. Although neither is yet profitable, each has distinct product strategies to attract investor interest. Both companies already have core products on the market.

From the perspective of Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, medical device companies are choosing listing venues based on their specific profiles. The STAR Market’s fifth set of criteria suits innovative, high-end medical device firms that may not yet be profitable but possess advanced technology. The Beijing Stock Exchange, meanwhile, serves innovative small and medium-sized enterprises with stable revenue and earnings. Bai noted that the medical device sector is shifting from “concept-driven” to “performance-driven,” with only companies demonstrating solid capabilities likely to sustain market recognition. Investors should focus on technological originality, commercialization potential, and profitability.