The equipment sector boosted and superimposed repurchases provided emotional support. Elken Healthcare (01789) ushered in a stock price rebound point?

In the third quarter of 2026, the overall market size of medical device bidding in China increased by 7.83% year on year, ending the negative growth trend in the first half of the year and achieving year-on-year correction, showing clear signs of market recovery. Combined with the recent disclosure of AH and the three quarterly reports, the trend of the medical device industry at the inflection point in Q3/Q4 has been further clarified.

Meanwhile, Elken Healthcare (01789), whose growth attributes are highly compatible with the main line of the “device innovation+going overseas+robotics” industry, also recently ushered in a long-lost valuation repair window with the support of market trends.

The equipment sector boosted, providing support for a rebound in stock prices

Since this year, with improvements in medical equipment tendering, the impact of high-value consumables and in vitro diagnostic collection is gradually being clarified. Many leading segment companies have gradually entered a period of accelerated performance, achieving a two-way restoration of sector performance and valuation.

Take A-share data as an example. In the Q2 quarter of this year, the total revenue of 131 companies in the medical device sector increased 12.2% year on year, and net profit to mother increased 30.0% year on year. The trend of improving industry profits is quite clear. However, the implementation of the current Q3 quarterly report constituted a direct catalytic factor for the rise in the A-share equipment sector.

Tianyi Medical's latest Q3 quarterly results showed that its current net profit to mother increased 167.39% year on year and operating income increased 20.59% year on year, directly igniting the enthusiasm of A-share market capital on October 26 to price individual stocks whose performance exceeded expectations in the medical device sector. On the same day, in the A-share device sector, Dabo Healthcare, Tianzhihang, and Yahuilong rose more than 7% in the intraday market, Sannuo Biotech, Xiangyu Medical, Microelectrophysiology, Shanwaishan, and Huitai Medical shares rose more than 5%, and weighted stocks such as Mindray Healthcare and Lianying Healthcare collectively followed suit, leading the pharmaceutical industry chain with an intraday increase of more than 2%.

Judging from the market pricing logic, the current A-share medical device sector is mainly catalyzed by multiple factors such as innovation, overseas travel, and mergers and acquisitions. Clinical innovation directions such as pulsed electric field ablation, renal artery denervation, and surgical robots have ushered in a revaluation of market value.

Although Elken Healthcare did not disclose financial reports for the quarter, on the one hand, the company itself has high growth attributes such as orthopedic consumables, digital orthopedics, surgical robots, and overseas revenue, which is highly in line with the current market trend; on the other hand, market investors chose to re-evaluate the company's Q2 quarter performance under its current underestimation.

The Zhitong Finance App learned that the previous semi-annual report showed that Elken Healthcare achieved current revenue of 765 million yuan, an increase of 10.2% over the previous year; corresponding net profit to mother reached 197 million yuan, an increase of 22.5% over the previous year. Financial reports show that its current revenue growth is mainly due to significant growth in overseas markets and smart device sales. However, in addition to benefiting from revenue growth, the increase in revenue from overseas and digital orthopedic products and smart devices, which have relatively high gross profit margins, further drove an increase in overall gross margin.

Specifically, in terms of overseas markets, in the first half of 2026, Elken Healthcare developed 13 new overseas distributors and added 5 new registered countries, and achieved revenue of 182 million yuan (up 41.7% year on year), increasing its revenue share to about 24%, becoming its core growth driver; in the first half of the year, the company's intelligent surgery planning software and services covered more than 1,500 hospitals, and the 3D customization business covered more than 500 hospitals, and launched nearly 100 smart devices to more than 110 hospitals, driving a total of more than 6,000 implants. Customized products and services achieved revenue of 45 million yuan, a significant year-on-year increase of 142.6%.

As a target with outstanding overseas performance in the medical device sector of the Hong Kong stock market, Elken Medical has been favored by foreign investors in this market.

According to brokerage transaction data, in the past 5 days, Elken Healthcare's top three net buying brokers were all foreign investors. Among them, Hong Kong and Shanghai HSBC, which is Elken Healthcare's third-largest shareholding broker, bought 1.382 million shares during the period, while Citibank and BNP Paribas made net purchases of 866,600 shares and 490 million shares respectively.

Buybacks provide emotional support, and low acceptance has already emerged

Looking at the market, in the three trading days from October 23 to October 27, there was a clear rebound in Elken Healthcare's stock price.

The Zhitong Finance App observed that on October 27, the company's intraday stock price reached a high of HK$4.60. Since then, the company's highest intraday share price increase of nearly 10% in the past three days.

Judging from the price structure, after an earlier period of low sideways trading, Elken Healthcare did not show a clear signal of a technical bottom in the market before October 23 under the influence of obvious trending selling pressure. Until October 23, although the intraday low of the day reached HK$4.20, the final closing price stood at HK$4.40, which did not fall below the short-term technical support level of HK$4.22. Stopping back also indicated that there was already underwritten capital from outside the market at that time, and this also provided momentum for the subsequent rebound.

Looking at the combined volume performance, from October 23 to October 27, Elken Medical's highest single-day trading volume was 3.17 million shares on October 26, and the daily turnover was HK$14.216 million. The average trading volume within the range was about 1.08 times the average volume for the previous 20 days, and the average turnover was about 1.044 times the average for the previous 20 days. OBV continued to improve from October 23 to October 27, which also shows that during this round of stock price rebound, the pressure on chip outflow has abated. In other words, at present, Elken Healthcare is still in the moderate phase, and differences within and outside the market are gradually growing.

Judging from the momentum indicators, as the company's stock price reached the 5-day EMA and 10-day EMA in the past 3 days, its MACD index changed from negative to positive on October 26 and 27, indicating that while the bears' momentum in the market was exhausted, short-term rebound momentum had appeared; immediately after that, the RSI14 index climbed from the oversold area of 32.07 a few days ago to above 45 and entered the neutral zone. Positive signals have already appeared; however, due to the rapid rise in short-term stock prices, its KDJ-J value first crossed the strong 80 zone on October 27. Although the first two indicators indicate from a technical perspective that Elken Healthcare's momentum has shifted from “overselling and passivation” to “repair,” the KDJ index, which is rising too fast, failed to form a multi-cycle trend resonance. In addition, Elken Medical did not simultaneously form strong confirmation on the financial side at this time, thus increasing the probability that the company's stock price will fluctuate and dissipate in the short term.

However, this may not have too much impact on the subsequent overall trend of Elken Healthcare's stock price.

From a valuation perspective, after a phased correction in the early stages, Elken Medical's PE valuation is currently only 11.43 times, far lower than the industry average of 15.78 times PE. It is also 12% lower than its average valuation in the past three months, and is clearly undervalued. In addition, Elken Healthcare's management is also strengthening market confidence through continuous buybacks.

According to the Zhitong Finance App, since the beginning of this year, Elken Medical has repurchased shares 58 times, with a total number of 488.74 million shares repurchased, accounting for 4.35% of the company's total share capital, involving HK$269 million.

Among them, in September and October of this year alone, the company carried out 21 repurchase operations. Although the scale of repurchases was significantly smaller than the previous repurchase scale, compared to the company's current average daily turnover and circulation market, at a time when stock prices are still dominated by chips, liquidity, and trend transactions, the “small step fast run” type of repurchase can still provide emotional support that cannot be ignored in the market.