Baize Medical (02609.HK) Market Performance and Business Analysis: Index Inclusion Effect and Long-Term Value Observation

This analysis is based on Hong Kong hot stock information from Tushare dc_hot [0] and related external reports [1-4], focusing on the market performance and business fundamentals of Baize Medical (02609.HK). The company was listed on the Hong Kong Stock Exchange on June 23, 2025, with an issue price of HK$4.22 and a first-day gain of 42.18% [2]. In September 2025, due to inclusion in the Stock Connect and Hang Seng Index series components, its stock price soared 1.3-1.4 times in two trading days, reaching a high of HK$17.06 [3,4]. As of November 2025, the stock price has fallen back to around HK$5.73, but the market capitalization still exceeds HK$20 billion [0]. The company focuses on full-cycle oncology medical services, operates 8 hospitals, and has in-depth cooperation with Peking University Cancer Hospital and academician teams [1], but still recorded losses in the first half of 2025 [2].

Baize Medical’s market performance shows significant phased characteristics: optimistic sentiment in the initial listing period [2], capital-driven rise after index inclusion [3,4], and subsequent price correction [0]. At the business level, the company has built an oncology medical service chain covering screening, diagnosis, treatment, and rehabilitation by directly holding 6 for-profit hospitals and managing 2 non-profit hospitals [1]. Its core competitive advantage lies in its cooperation with Peking University Cancer Hospital and its tie-up with resources from Shi Xuemin, an academician of the Chinese Academy of Engineering [1], which endorses the quality of its medical services.

Financially, in the first half of 2025, the company’s revenue was 575 million yuan, a year-on-year increase of 0.66%, but the loss attributable to shareholders expanded to 27.62 million yuan (a year-on-year increase of 139.18%) [2]. The expanded loss may be related to expansion costs and operating expenses. At the market level, the healthcare sector it belongs to performed well overall in 2025, and the Hang Seng Healthcare Index showed an upward trend [0], which provided a favorable industry environment for the company.

1. Significant Index Inclusion Effect
   : Inclusion in the Stock Connect and Hang Seng Index series components is the core factor driving the company’s stock price surge, reflecting the short-term impact of passive capital inflows on new stocks [3,4].
2. Business Model and Resource Binding
   : The company has a differentiated advantage in the private medical field through the model of equity-binding top medical resources (academicians, well-known hospitals), but it is necessary to observe the ability to convert resources into sustainable profitability [1].
3. Price Volatility and Valuation Rationality
   : The stock price fell from HK$17.06 to HK$5.73, reflecting the market’s rational return after short-term speculation; attention should be paid to whether the improvement of the company’s fundamentals can support the current valuation [0].

• Continuous Loss Risk
  : The company has been in losses for three consecutive years, and the loss expanded in the first half of 2025; profitability remains to be verified [2].
• Market Volatility Risk
  : The stock price is significantly affected by capital flows, with large short-term fluctuations [0].
• Industry Competition Risk
  : The private medical field is highly competitive, and it is necessary to continuously maintain resource advantages to remain competitive [1].

• Policy Dividends
  : The healthcare sector is improving overall, and the upward trend of the Hang Seng Healthcare Index provides industry support [0].
• Resource Integration Potential
  : If the cooperation with top medical resources can be effectively converted into business growth, it is expected to enhance long-term value [1].

As a newly listed oncology medical service provider in 2025, Baize Medical (02609.HK) has gained market attention through its resource-binding model and index inclusion effect. Its market performance has significant phased characteristics, with large short-term price fluctuations. At the business level, it has differentiated advantages, but it still faces the challenge of continuous losses financially. Investors should pay attention to the improvement of the company’s profitability, the effect of resource integration, and the impact of industry policy changes on its future development.