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Star Sports Medicine Co., Ltd Class H (1609) AI Stock Analysis

HK:1609

Star Sports Medicine Co., Ltd Class H

(HKEX:1609)

Select Model
Rating:69Neutral
Price Target:HKD 65.00â–²(26.46% Upside)
Action:downgraded
Date:10/21/26

Strong financial performance with robust growth, high margins, and minimal leverage is the primary driver, partially offset by weak technical momentum from price action below moving averages and negative MACD.

Positive Factors
Multi-year Revenue ScalingRevenue increased from approximately 31.4M in 2020 to 402.8M in 2025, while 2025 growth remained about 23%. This multi-year expansion indicates meaningful business scaling and creates a larger base over which the company can spread costs and build operating capacity.
Negative Factors
Historical LossesAlthough results improved materially, losses in 2020–2021 and negative returns on equity show that profitability has not always been durable. This history indicates execution or scale-up risk could re-emerge if operating conditions weaken or expansion becomes harder to manage.

Star Sports Medicine Co., Ltd Class H (1609) vs. iShares MSCI Hong Kong ETF (EWH)

-80%-60%-40%-20%0%20%HK:1609-76.09%EWH+8.19%Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 2.25B
Dividend Yield
―
Average Volume (3M)
284.87K
Price to Earnings (P/E)
27.0
Beta (1Y)
1.24
Revenue Growth
―
EPS Growth
―
Country
Hong Kong
Employees
384
Sector
General
Sector Strength
55
Industry
Medical - Devices

Star Sports Medicine Co., Ltd Class H Business Overview & Revenue Model

Company Description

Star Sports Medicine Co., Ltd. manufactures and markets clinical products and solutions for sports medicine in China. The company offers medical implant, such as bioabsorbable suture anchor, includes all-suture anchor, PEEK suture anchor, and carbon...

Star Sports Medicine Co., Ltd Class H Financial Statement Overview

Summary

Strong revenue growth to 403 million with 23% YoY increase, high 74% gross margins, net margins at 34%, low debt-to-equity of 0.05, and robust free cash flow of 123 million demonstrate excellent financial health.

Income Statement

86Very Positive

Balance Sheet

94Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue397.82M402.75M327.12M238.54M146.60M89.58M
Gross Profit295.86M298.62M227.59M177.31M103.94M59.68M
EBITDA176.29M169.36M121.86M77.68M48.33M-137.49M
Net Income146.98M136.97M95.39M57.11M40.34M-135.26M
Balance Sheet
Total Assets1.43B764.08M617.33M451.28M346.92M347.22M
Cash, Cash Equivalents and Short-Term Investments1.12B539.78M434.06M356.37M272.84M263.70M
Total Debt31.15M32.62M22.58M8.33M11.06M12.46M
Total Liabilities154.66M154.66M146.09M76.51M18.69M60.58M
Stockholders Equity1.30B609.42M471.24M374.77M328.24M286.63M
Cash Flow
Free Cash Flow195.02M122.88M67.36M58.60M47.30M5.96M
Operating Cash Flow207.50M157.12M94.52M79.86M55.81M9.82M
Investing Cash Flow-319.03M-120.56M-371.25M-21.17M6.03M1.54M
Financing Cash Flow-16.72M-9.35M10.13M24.59M133.36M58.27M

Star Sports Medicine Co., Ltd Class H Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

HK:1609 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0331HK:033172OutperformHKD 2.40B5.9828.73%6.88%-2.76%-7.88%
HK:1609HK:160969NeutralHKD 2.80B27.0313.02%―――
HK:8629HK:862961NeutralHKD 247.68M9.6011.30%2.88%86.04%118.12%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
HK:3928HK:392849NeutralHKD 14.14B-326.14-19.61%―-25.67%-1034.21%
HK:2262HK:226242NeutralHKD 370.96M31.253.68%―4.28%25.30%
HK:9929HK:992931UnderperformHKD 2.40B-34.11-42.47%―33.88%-735.09%

* General Sector Average

Performance Comparison

0%1000%2000%HK:1609HK:9929HK:2262HK:0331HK:3928HK:8629Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:1609 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1609Star Sports Medicine Co., Ltd Class H51.40-163.60-76.09%
HK:9929SEM Holdings Limited1.241.161450.00%
HK:2262Steve Leung Design Group Limited0.33-0.78-70.45%
HK:0331FSE Lifestyle Services Limited5.44-0.00-0.09%
HK:3928S&T Holdings Ltd.28.4023.16441.98%
HK:8629Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. Class H7.300.446.37%

Star Sports Medicine Co., Ltd Class H Corporate Events

Star Sports Medicine Calls EGM to Approve 2026 Share Incentive Scheme

Sep 30, 2026

Star Sports Medicine Co., Ltd. has called a second extraordinary shareholders’ meeting for October 22, 2026, in Beijing, open to eligible H-shareholders recorded on the register by the specified cut-off date. Shareholders may vote in person or...

Star Sports Medicine Wins EU MDR and Overseas Device Approvals

Sep 10, 2026

Star Sports Medicine Co., Ltd is a China-based sports medicine manufacturer focused on medical devices and surgical instruments for joint repair and arthroscopic procedures. Its portfolio spans implants, active devices, consumables and endoscopic ins...

Star Sports Medicine Launches Authorized H-Share Buyback Plan

Aug 18, 2026

Star Sports Medicine Co., Ltd. has received shareholder approval at its 2025 annual meeting for a general mandate allowing the board to repurchase up to 10% of its issued H shares, with an initial plan to buy back up to about 2.90 million shares, or...

Star Sports Medicine Boosts Revenue but Sees Interim Profit Decline on Higher Costs

Aug 17, 2026

Star Sports Medicine Co., Ltd reported a 21.6% year-on-year increase in revenue to RMB163.4 million for the six months ended 30 June 2026, driven by strong gross profit growth of 21.8% to RMB121.3 million, underscoring solid topline momentum in its s...

Star Sports Medicine Sets Board Meeting to Approve Interim Results and Consider Dividend

Aug 5, 2026

Star Sports Medicine Co., Ltd. has called a board meeting for August 17, 2026, to review and approve its interim results for the six months ended June 30, 2026, and to authorize their publication. The board will also consider whether to recommend the...

Star Sports Medicine unveils 2026 share incentive scheme to align talent and investors

Aug 3, 2026

Star Sports Medicine Co., Ltd. plans to adopt a 2026 share incentive scheme, subject to shareholder approval at an upcoming meeting, to strengthen its long-term incentive mechanisms. The scheme uses a trust structure to acquire H shares from the mark...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 21, 2026