Fresh from its first profit, Medcaptain steps into IPO spotlight

The maker of medical devices crossed the profit threshold this year thanks to rising demand for its tools to diagnose digestive or urinary problems

Key Takeaways:

• Medcaptain sells its life-support and testing products in more than 140 countries and regions, with strong positions in several specialist markets
• More than half of its revenue comes from selling equipment used in minimally invasive interventions such as endoscopy

By Molly Wen

Judging from the vital signs, Hong Kong’s biotech stocks have returned to rude health this year, buoyed by investor confidence in the sector.

And the robust rally in the Hang Seng Healthcare Index, which has nearly doubled since the start of year, has encouraged other medically focused companies to seek funding from the eager ranks of equity investors.

One such IPO candidate is a Chinese maker of medical devices that are used to provide life support for critically ill patients or to diagnose a range of health conditions. Medcaptain Medical Technology Co. Ltd. filed an application to list on the Hong Kong Stock Exchange on Sept. 11, with Morgan Stanley and Huatai International acting as joint sponsors.

Founded in 2011, Medcaptain produces various devices and related products to serve clinical needs in hospitals, outpatient clinics, health centers, laboratories and domestic care settings. Its products are grouped into three business areas: life support, minimally invasive interventions, and in-vitro diagnostics.

The first category is used in intensive care units, operating rooms and emergency departments to manage the care of seriously ill patients. The devices include infusion systems, anesthesia machines, airway management products and testing equipment for lung function. The second business segment covers the diagnosis and treatment of disorders of the digestive or urinary systems, with products such as reusable and single-use endoscopes, which are tube-mounted cameras inserted into the body to view internal organs. In its third business segment, Medcaptain provides in-vitro testing equipment targeting biomarkers for coagulation, blood grouping, chemiluminescence and molecular diagnostics, with products designed to pinpoint an array of health issues from inflammation to cancer and viral infections.

Medcaptain enjoys a leading position in several of its specialist markets, according to research commissioned for the IPO pitch. By sales value, Medcaptain was China’s biggest provider of infusion workstations in China from 2018 to 2024, the study found. The company took second place in Chinese provision of diagnostic consumables targeted at the digestive system from 2022 to 2024 and entered the top five in the country’s blood grouping equipment market in 2024, according to the research by China Insights Industry Consultancy (CIC).

Medcaptain said it had launched more than 50 life support products, 80 minimally invasive intervention products and 210 in-vitro diagnostic products by the middle of this year, reaching more than 140 countries and regions worldwide. The company boasts five R&D centers and six manufacturing facilities in China and the United Kingdom, with products used in more than 6,000 hospitals across China.

According to the research, the medical device industries in which Medcaptain operates are experiencing rapid growth and show significant promise for the future. The global device market for life support services reached $75.1 billion last year, with the China accounting for 55.7 billion yuan ($7.8 billion). CIC sees the global market reaching $109.7 billion by 2030, while China’s domestic market was projected to expand to 93.2 billion yuan.

In its IPO application, Medcaptain said the proceeds from the listing would be used to strengthen R&D across its three business categories and drive global growth.

Rising revenues

Medcaptain’s earnings have headed upwards in recent years. Revenues rose from 917 million yuan in 2022 to 1.31 billion yuan a year later, reaching almost 1.4 billion yuan in 2024. Revenues increased 15.31% to 787 million in the first half of 2025 from the same period a year earlier. Over the same reporting period, gross profit margin has risen from 43.7% in 2022 to 52.9% in the first half of 2025.

Revenue from minimally invasive interventions has steadily mounted to account for more than half of total revenue. In the first half of 2025, it reached 400 million yuan, or 51.1% of overall turnover. Meanwhile, income from life support products came in at 300 million yuan, or 37.9% of turnover, and in-vitro diagnostics brought in a further 86.22 million yuan, accounting for 11% of the whole.

The earnings input from life support products has fluctuated over recent years, affected by the Covid pandemic. In 2023, income from this part of the business was 564 million yuan, but the takings fell 12.4% last year to 494 million yuan. The company blamed front-loaded buying strategies by hospitals during the pandemic to secure vital supplies, resulting in lower demand last year.

This year Medcaptain marked an earnings milestone when it landed in the black for the first half, swinging to a net profit of 40.97 million yuan from a loss of 58.03 million yuan in the first six months of 2024. The company cited increased sales volume, greater manufacturing efficiency and dilution of fixed production costs as factors in passing the breakeven point. Looking back at past results, Medcaptain’s net loss had narrowed from 226 million yuan in 2022 to 64.51 million yuan in 2023, driven by an expanding product range and stronger customer demand. However, life support demand weakened after the pandemic passed its peak in 2023, slowing revenue growth and resulting in a net loss of 96.62 million yuan that year.

Medcaptain is backed by a strong roster of investors, having completed multiple financing rounds since 2016 with names including Hillhouse Capital and Shenzhen Capital Group. According to the prospectus, Hillhouse entities hold 20.79% of the company’s shares while the Shenzhen Capital Group holds 8.54%. After its last financing in 2023, the company’s valuation reached nearly 8.25 billion yuan. Based on its 2025 earnings, that figure implies a price-to-earnings (P/E) ratio of around 100 times, compared with just 32 times for industry leader Mindray Medical (300760.SZ).

Despite the hefty premium, investors may still want to pay attention to the company’s growth potential, given its new-found profitability and established presence in the medical device market.

To subscribe to Bamboo Works free weekly newsletter, click here