The market's valuation of TH MEDICAL-B (02697) has been on a consistent upward trajectory, evidenced by a financing subscription multiple of 682.43 times, a 216.96% surge on its first trading day, and a market capitalization reaching HK$14.26 billion. On July 13, the company's share price hit a new post-IPO high, touching HK$500 intraday, representing a nearly threefold increase from its offer price and briefly pushing its market cap above HK$17.1 billion. How has a surgical robotics firm with annual revenue just surpassing ten million yuan garnered such intense capital market interest?
The medical device sector is notoriously a "slow business," with Class III medical device registrations often requiring years of groundwork and even longer commercialization validation cycles, leading many innovative device companies to falter on the path from clinic to market. Yet TH MEDICAL-B, founded in 2018, completed the entire journey from lab R&D, product approval, commercial validation to a Hong Kong listing in just eight years. The answer lies within its three distinct "accelerations."
Product Acceleration: Pioneering Approvals and First-to-Market Products
While Class III medical device registration is typically a lengthy process, TH MEDICAL-B has demonstrated a notably faster pace in securing approvals within the percutaneous puncture and ablation surgical robot sector. In May 2022, its TH-S1 obtained the first Class III registration certificate in China for a percutaneous puncture surgical robot. By June 2023, the TH-S model was approved and designated as "domestically innovative" by the National Medical Products Administration (NMPA). In September 2024, the TH-X MW was approved for liver tumor treatment and recognized as "internationally innovative." Its indications were further expanded to include lung tumor treatment in April 2026.
To date, excluding consumables, the company has secured 8 NMPA Class III and 2 Class II medical device registrations, totaling 10 products approved for market. Among the 21 approved percutaneous puncture surgical robots in China, TH MEDICAL-B holds 5 NMPA approvals, making it the company with the earliest approvals and the highest number of approved products in this niche. This speed is underpinned by its integrated "brain-eye-hand" technological foundation: an intelligent imaging analysis system for 3D reconstruction, lesion identification, and path planning; an optical navigation system for real-time instrument tracking; and a robotic arm control and respiratory tracking system to manage target displacement caused by breathing. This creates a complete technical loop covering pre-operative planning, intra-operative guidance, and post-operative assessment for percutaneous procedures. The rapid approval cadence is not accidental but the result of synergistic technology strategy, clinical validation, and regulatory expertise.
Market Acceleration: From Installation Validation to Revenue Growth
Product approval is merely the starting point; the real test lies in commercialization. In 2025, the company delivered six systems, including two TH-S, one TH-P, one TH-S Pro, and two TH-X MW systems. Driven by this increase in deliveries, revenue grew from RMB 1.791 million in 2024 to RMB 12.178 million in 2025, with gross margin improving to 76.3%.
It is important to note that the market share figures in its prospectus refer specifically to the percutaneous puncture surgical robot market. According to CIC data, the company's actual shipments in this market for 2025 were 4 units, giving it a 36.4% market share by shipment volume and a 28.0% share by revenue, ranking first nationally in both metrics.
In terms of business model, equipment deliveries are beginning to drive consumables sales. In 2025, consumables revenue reached RMB 1.358 million, accounting for approximately 11.2% of total revenue, indicating the initial formation of a "system placement + consumables repurchase" model. Public information shows the company's products have entered nearly 100 medical institutions across China, completing over 7,200 procedures covering techniques like puncture biopsy, pre-operative localization, tumor ablation, and seed implantation. Real-world evidence cited in the prospectus also shows a 100% technical success rate in related studies, providing crucial support for subsequent commercial expansion.
Simultaneously, the company's product portfolio caters to the needs of different tiers of medical institutions: the TH-S series targets high-end settings like tertiary hospitals, the TH-P series offers a more compact solution for broader market penetration, and the TH-X series extends applications from puncture navigation to microwave ablation therapy. On the distribution front, the company collaborates with 27 domestic distributors, covering clients in 23 key provinces. From a policy perspective, the NMPA's January 2026 guidelines for pricing surgical and therapeutic auxiliary procedures established a clearer pricing framework for robot-assisted operations, aiding hospitals in evaluating the clinical and economic value of related products.
Capital Acceleration: An Eight-Month Sprint to Listing
TH MEDICAL-B's path to its public offering was equally efficient. After completing its shareholding system reform on October 29, 2025, it submitted a confidential application on December 8, received a filing notice from the China Securities Regulatory Commission on May 19, 2026, made a public disclosure on May 31, passed its hearing on June 12, and officially listed on the Hong Kong Stock Exchange on June 30. This critical journey from corporate restructuring to listing was completed in eight months.
The capital market responded directly. During the offering, the financing subscription multiple reached 682.43 times. On its first trading day, the share price closed at HK$400, a 216.96% increase from the offer price of HK$126.20, resulting in a market cap of HK$14.26 billion. This attention is not merely due to IPO sentiment but is also supported by the growth prospects of its sector. According to CIC data, the market size for percutaneous puncture surgical robots in China is projected to grow from RMB 25.7 million in 2025 to RMB 1.386 billion in 2031, with a CAGR of 78.3% from 2026 to 2031. The volume of robot-assisted puncture procedures is expected to surge from 2,200 cases in 2025 to 290,400 cases in 2031, with a CAGR of 102.6% from 2026 to 2031.
These three "accelerations" are interlinked: rapid product approval builds a time-based barrier; swift market advancement validates the commercial pathway; and an expedited listing process provides capital for subsequent R&D and channel expansion. The foundational support throughout, however, remains the company's technological accumulation in "percutaneous localization and precise treatment" and its product ecosystem spanning from puncture to ablation. For hard-tech companies, "speed" is not a simplistic pursuit but the result of the simultaneous alignment of R&D, regulatory, clinical, and commercial capabilities. The listing is not an endpoint but a new starting point for TH MEDICAL-B as it enters the next phase of commercial validation.
Comments