NewTimeSpace | Market Expansion vs. Revenue Decline: Bayzed Health (02609.HK) Stock Rebounds Over 70% Since March

In April 2026, the oncology medical services sector of the Hong Kong stock market witnessed a structural rebound. Bayzed Health (02609.HK), a core player in this track, has delivered a robust market performance since the release of its annual report at the end of March.

As of the close on April 15, 2026, the company was quoted at HKD 5.25, rising over 5% on the day and marking its third consecutive day of gains.

Strong Stock Rebound; Gains Exceed 70% Since March

NewTimeSpace has learned that Bayzed Health was listed on the Main Board of the Hong Kong Stock Exchange on June 23, 2025, with an offer price of HKD 4.22. It closed its first day of trading at HKD 6.00, a surge of 42.18%, bringing its total market capitalization to HKD 7.911 billion.

However, compared to "over-subscription kings" listed during the same period—such as Medilink Therapeutics (oversubscribed 3,419 times) and Sanhua Intelligent Controls (747 times)—Bayzed Health saw a more modest public offering subscription of 25.92 times and an international offering of only 0.98 times, indicating relatively limited initial investor enthusiasm.

Following the first-day surge, the stock price remained under pressure for the next six months, once dipping to approximately HKD 3.3. This trajectory aligns closely with historical patterns in the oncology medical sector. Competitors such as Hygeia Healthcare and Concord Healthcare also experienced a "high opening followed by a decline" post-listing, with share prices retreating significantly under the triple pressure of performance verification, shareholder lock-up expirations, and cooling market sentiment.

Since March 2026, Bayzed Health’s stock price has staged a powerful rebound, fueled by multiple catalysts.

NewTimeSpace noted that on March 27, 2026, the *"Expert Consensus on Cancer Rehabilitation,"* drafted by the company's subsidiary Taiyuan Peace Hospital in collaboration with 29 experts from institutions like Peking University Third Hospital, was published in the Chinese Medical Association journal series. This marked the first standardization of the "Five Prescriptions" system for cancer rehabilitation, integrating these services into standardized clinical pathways. The company's stock price rose nearly 10% on that day.

Furthermore, on April 1, 2026, as the broader Hong Kong pharmaceutical and healthcare sectors rallied, Bayzed Health surged over 12% following its earnings release.

It is understood that since the publication of its annual report, Southbound funds have consistently increased their holdings. As of April 13, Southbound funds held a total of 91.4262 million shares of Bayzed Health, accounting for 6.92% of the issued ordinary shares. The stock saw net increases in holdings in 14 out of the last 20 trading days, with a cumulative net increase of 14.1882 million shares.

Zhongtai Securities pointed out that the pharmaceutical sector had undergone a thorough adjustment previously. With innovative drugs progressing steadily in terms of Business Development (BD) and commercialization, and capital flowing back from the technology sector, the pharmaceutical industry has entered a valuation recovery channel.

As of the close on April 15, 2026, the company’s share price was HKD 5.25, a daily gain of 5.21% and a cumulative increase of 73.27% since March 2026.

Revenue Decline; GAAP Net Loss Attributable to Parent Stands at RMB 12.957 Million

Public information shows that Bayzed Health owns six private for-profit hospitals through direct equity and manages two private non-profit hospitals. It operates and manages a total of eight hospitals across Beijing, Tianjin, Shanxi, Anhui, and Henan, focusing on providing full-cycle oncology medical services, including screening, diagnosis, treatment, and rehabilitation.

In terms of its brand matrix, many of Bayzed Health’s hospitals were acquired and integrated, leading to a diverse range of brands that the market has occasionally described as a "mixed fleet."

The company has now established a business closed-loop covering key stages such as early cancer screening, diagnosis, multi-modal treatment, rehabilitation, and hospice care. It also provides comprehensive cancer prevention assessments, vaccinations, and health management services for potential high-risk groups, such as family members of cancer patients.

In 2025, the company further upgraded its strategy by leveraging an AI-ready continuous medical service platform to systematically transform the eight stages of "prevention, screening, diagnosis, treatment, rehabilitation, management, connection, and companionship" into practical medical implementation.

On March 31, 2026, Bayzed Health released its first full annual report since listing. The 2025 performance showed a structural divergence: "declining revenue but narrowing GAAP losses."

Data shows that Bayzed Health achieved a total revenue of approximately RMB 1.1198 billion in 2025, a year-on-year decrease of 5.8%, primarily due to a decrease in gross profit from the hospital business. However, oncology-related revenue within the hospital segment reached approximately RMB 440 million, accounting for about 48.1%. The adjusted net profit was approximately RMB 17.9 million, a significant year-on-year increase of 43.2%; the adjusted EBITDA margin rose from 11.4% to 12.9%. The GAAP net loss attributable to the parent company was RMB 12.957 million, narrowing by 3.7% year-on-year.

In 2025, the total number of outpatient and emergency visits at the company’s owned hospitals reached 670,000. The number of high-difficulty (Grade III and IV) surgeries completed was 6,453, a year-on-year increase of 16.9%, representing 58.6% of total surgeries—up nearly 10 percentage points from the previous year.

The financial structure improved, with net operating cash flow reaching a record high of RMB 222 million in 2025 (+32.0% YoY). The gearing ratio dropped significantly from 46.9% to approximately 36.6%, while cash and cash equivalents increased to RMB 616 million (+109.4% YoY).

Market Expansion into the Billions; Facing Multiple Challenges

According to Frost & Sullivan forecasts, the private oncology medical services market will grow from approximately RMB 53 billion in 2022 to approximately RMB 109.2 billion in 2026, with a compound annual growth rate (CAGR) of about 19.8%.

From the demand side, public hospitals are often limited by resources, leading to a common phenomenon of "heavy focus on treatment, light focus on screening and rehabilitation." Meanwhile, the growing demand for full-cycle services among cancer patients and high-risk groups provides space for private medical institutions to compete through differentiation.

Currently, the private oncology medical service track where Bayzed Health operates is experiencing rapid expansion. The market currently presents a landscape of "two strong leaders and high fragmentation."

NewTimeSpace has learned that its competitor, Hygeia Healthcare, enjoys a higher certainty premium in the capital market due to its clear chain-replication model, larger scale, and stable profitability. In contrast, Bayzed Health builds niche barriers in emerging fields such as oncology rehabilitation and early screening through its "full-cycle" differentiation. While its current market scale is smaller, its growth potential offers significant room for imagination.

Despite establishing differentiated advantages in this niche track, the company still faces multiple challenges. First is the significant disadvantage in scale: Bayzed’s revenue is only about one-quarter that of Hygeia Healthcare, and it lacks a unified brand matrix, resulting in relatively weak national brand recognition and regional replication capabilities.

Second, it has yet to achieve profitability under GAAP standards. Although adjusted profits have grown continuously, the company remains in a loss state under GAAP, with a net loss attributable to the parent of RMB 12.957 million. For institutional investors who prioritize the quality of earnings, this metric remains a major constraint for allocation decisions.

Finally, pressure from the payment side continues. With the comprehensive advancement of DRG/DIP 2.0 medical insurance payment reforms, the traditional private hospital model that relies heavily on bed expansion is being restructured. Although the company has taken the lead in transitioning to refined operations, the long-term impact of payment reforms remains uncertain.

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