Jinhai Medical Tech Surges on Stock Connect Inclusion and Strong Revenue Growth

Shares of Jinhai Medical Technology (02225.HK) continued their strong upward trend on Tuesday, building on a significant rally from the previous session. The surge follows the company's recent inclusion in the Hong Kong Stock Connect program and robust first-half financial results that indicate a clear path toward profitability.

As of Tuesday morning, the stock was up 7.31% at HK$5.14, with a turnover of HK$34.005 million, according to Zhitong Finance APP. This follows a gain of over 14% on Monday.

Stock Connect Inclusion Boosts Liquidity

A primary catalyst for the stock's performance is its official inclusion in the Stock Connect program, effective September 7. This development opens a crucial channel for mainland Chinese investors, known as Southbound capital, to trade the company's shares.

Market analysts note that access to the Stock Connect program is expected to broaden Jinhai Medical's shareholder base, attract long-term institutional investors, and ultimately enhance the stock's trading liquidity.

Strong Financials Underpin Rally

The positive market sentiment is also supported by the company's strong financial performance in the first half of the year. Key results include:

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• Revenue: S$34.021 million (Singapore dollars), a year-over-year increase of 134.16%.
• Profitability: Losses were significantly narrowed during the same period.

The company attributed the impressive growth to the rapid expansion of its medical device business. Revenue from minimally invasive surgical solutions and related products now accounts for 74.73% of the company's total income, establishing it as the primary revenue driver.

Context: A Focus on R&D

Jinhai Medical Technology's recent success is built on a foundation of sustained investment in research and development. The company has developed a comprehensive portfolio of innovative products, including 4K ultra-high-definition, 3D, and 8K endoscopy systems.

This focus has allowed the company to create a vertically integrated business model that covers the entire value chain from R&D and production to sales and service, positioning it for continued growth in the advanced medical device market.