Chinese medical device maker Contec rides pandemic demand to score 12-fold share price gain on Shenzhen debut
- Contec Medical Systems, headquartered in Qinhuangdao, Hebei province, benefited from the growing popularity of online health consultations
- The six-year-old company makes devices including heart monitors and ultra-sound scanners
The northern Chinese diagnostic devices maker closed its first day at 118 yuan(US$17.07), up from its issue price of 10.16 yuan. It rocketed as much as 30-fold at one point during trading.
Monday’s stellar performance gave the six-year-old company a market value of 35 billion yuan, equating to 693 times its earnings per share last year.
The company, headquartered in Qinhuangdao, Hebei province, has benefited from the growing popularity of online health consultations.
“Investors were excited by rising demand for distance medical consultations in mainland China, especially for elderly people with chronic diseases who cannot or do not want to make long-distance hospital trips,” said Carol Dou, a Hong Kong-based senior health care analyst at brokerage UOB-Kay Hian. “The pandemic saw growing acceptance of online consultations.”