HK Stock Market Move | STAR SPORTS MED (01609) drops over 5%, restricted shares will be officially unlocked next month, trading price for volume amid centralized procurement impact.

STAR SPORTS MED (01609) dropped over 5%, falling 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 STAR SPORTS MED's four cornerstone investors will be officially 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, after which it continued to decline steadily, hitting a historic low of HK$74.25 on October 2. Analysts pointed out that the shift from the stellar performance on its debut to the current below-IPO decline is actually the result of four factors working together: overheated market sentiment, a relatively small free float, an overstretched valuation level, and a return to value. It is worth noting that thanks to the sales ramp-up 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 the prospectus, since 2024, under the nationwide volume-based procurement for sports medicine implants, 14 of the company's 19 implants have been included. Affected by this, the average selling price of implants dropped from RMB711.9 per unit in 2023 to RMB446.3 per unit in 2024, a decrease of 37.3%.