Medical device sector rally combined with share buybacks providing sentiment supportis AK MEDICAL (01789) reaching a stock price rebound point?

Title context: Medical device sector rally combined with share buybacks providing sentiment supportis AK MEDICAL (01789) reaching a stock price rebound point? Text: In Q3 2026, the overall market size of medical device tendering and bidding in China grew 7.83% year on year, ending the negative growth trend in the first half of the year and returning to positive year-on-year growth, showing a clear signal of market recovery. Combined with the recent concentrated disclosure of Q3 reports in both A-share and Hong Kong markets, the inflection point trend of the medical device industry in Q3/Q4 has been further clarified. AK MEDICAL (01789), whose own growth attributes are highly aligned with the industry mainlines of "device innovation + overseas expansion + surgical robots," has also recently ushered in a long-awaited valuation repair window amid support from market risk appetite. Medical device sector rally provides support for share price rebound Since the beginning of this year, with the improvement in medical equipment tendering, the impact of centralized procurement on high-value consumables and in-vitro diagnostics is gradually being cleared, and a number of segment leaders have gradually entered a period of earnings acceleration, achieving two-way repair of sector earnings and valuation. Taking A-share data as an example, in Q2 this year, the combined revenue of 131 companies in the medical device sector increased 12.2% year on year, and net profit attributable to parent companies increased 30.0% year on year, indicating a relatively clear trend of industry profit improvement. The earnings delivery in the Q3 reports this time constituted the direct catalyst for the rally in the A-share device sector. The latest Q3 results disclosed by Ningbo Tianyi Medical Appliance show that its net profit attributable to parent companies in the period increased 167.39% year on year, and operating revenue increased 20.59% year on year, directly igniting A-share market enthusiasm on October 26 for pricing individual medical device sector stocks with better-than-expected earnings. That day, within the A-share device sector, Double Medical Technology Inc., Tinavi, and Shenzhen YHLO Biotech rose more than 7% intraday, while Sinocare Inc., Xiangyu Medical, Shanghai Microport EP Medtech, Sws Hemodialysis Care, and APT Medical Inc. rose more than 5%, and heavyweight stocks such as Shenzhen Mindray Bio-Medical Electronics and Shanghai United Imaging Healthcare rose collectively, with the benchmark index rising more than 2% intraday to lead the pharmaceutical industry chain. From the perspective of market pricing logic, this A-share medical device sector rally was mainly catalyzed by multiple factors including innovation, overseas expansion, and M&A, and clinical innovation directions such as pulsed field ablation, renal artery denervation, and surgical robots thus saw market value re-rating. Although AK MEDICAL did not disclose financial results 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 are highly aligned with the mainlines of this rally; on the other hand, market investors chose to revalue the company's Q2 performance given its current undervaluation. It is understood that the previous interim report showed that AK MEDICAL achieved revenue of RMB765 million in the period, up 10.2% year on year; corresponding net profit attributable to parent companies was RMB197 million, up 22.5% year on year. The financial report showed that revenue growth in the period mainly came from significantly growing overseas markets and smart device sales. In addition to benefiting from revenue growth, profit growth was further driven by an increase in the revenue share of higher-gross-margin overseas and digital orthopedics products and smart devices, which further lifted the overall gross margin. Specifically, in overseas markets, in the first half of 2026, AK MEDICAL newly developed 13 overseas distributors and added 5 newly registered countries, achieving revenue of RMB182 million in the period, up 41.7% year on year, with the revenue share rising to about 24%, becoming its core growth driver; in smart devices, in the first half of the year, the company's intelligent surgical planning software and services covered more than 1,500 hospitals, its 3D customization business covered more than 500 hospitals, and it had cumulatively deployed nearly 100 smart devices to more than 110 hospitals, cumulatively driving more than 6,000 implant procedures, thereby pushing revenue from digital orthopedics customized products and services in the period to RMB45 million, a sharp increase of 142.6% year on year. As an outperformer in overseas expansion among Hong Kong-listed medical device stocks, AK MEDICAL was favored by foreign capital in this rally. Broker trading data show that in the past 5 days, the top three net-buying brokers for AK MEDICAL were all foreign institutions. Among them, Hongkong and Shanghai Banking Corporation, the third-largest shareholding broker for AK MEDICAL, net bought 1.3820 million shares during the period, while Citibank and BNP Paribas net bought 860,600 shares and 490,000 shares, respectively. Buybacks provide sentiment support, and bottom-fishing has emerged From a technical perspective, in the three trading days from October 23 to October 27, AK MEDICAL's share price showed an obvious rebound trend. It was observed that on October 27, the company's intraday share price reached a high of HK$4.60, bringing the maximum intraday gain over the past three days to nearly 10%. From the price structure perspective, after a period of low-level sideways consolidation, AK MEDICAL's trading before October 23 had been unable to show a clear technical bottom signal under the influence of obvious trend-based selling pressure. It was not until October 23 that, although its intraday low once fell to HK$4.20, the final closing price still stood above HK$4.40 and did not break below the short-term technical support level of HK$4.22. The fact that the pullback did not break support also indicated that off-market buying funds had already appeared at that time, and this also provided momentum for the subsequent rebound. Combined with volume performance, from October 23 to October 27, AK MEDICAL's highest single-day trading volume within the range was 3.17 million shares on October 26, with turnover of HK$14.2160 million that day, while its average trading volume within the range was about 1.08 times the average of the previous 20 days, and average turnover was about 1.044 times the average of the previous 20 days. OBV improved continuously from October 23 to October 27, which also indirectly indicated that during this share price rebound, the pressure of capital outflow from AK MEDICAL was relatively moderate. In other words, AK MEDICAL is currently still in a stage of moderate volume expansion, and divergent sentiment on and off the market is gradually amplifying. From the perspective of momentum indicators, as the company's share price stood above the 5-day and 10-day moving averages over the past three days, its MACD indicator turned positive from negative on October 26 and 27, signaling that while bearish momentum in the market was exhausting, short-term rebound momentum had emerged; immediately afterward, the RSI14 indicator climbed from the oversold zone of 32.07 in the previous days to above 45, entering the neutral zone, and a positive signal had already appeared; however, because the short-term share price rose relatively quickly, its KDJ-J value on October 27 was the first to cross above the strong zone of 80. Although the first two indicators technically signaled that AK MEDICAL's momentum had shifted from "oversold stagnation" to "repair," the overly rapid rise in the KDJ indicator failed to coordinate to form a multi-timeframe trend resonance, and at the same time AK MEDICAL did not form strong confirmation on the capital side, thus increasing the probability of short-term intraday consolidation and digestion in the company's share price. However, this may not have a major impact on the subsequent overall trend performance of AK MEDICAL's share price. From a valuation perspective, after the previous phased pullback, AK MEDICAL's current PE valuation is only 11.43 times, far below the industry average PE of 15.78 times, and also 12% lower than its average valuation over the past three months, placing it at a clearly low valuation level. In addition, AK MEDICAL's management is also continuing buybacks to strengthen market confidence. It has been observed that from the beginning of this year to date, AK MEDICAL has cumulatively conducted 58 share buybacks, with a total of 48.8740 million shares repurchased, accounting for 4.35% of the company's total share capital, involving funds of HK$269 million. Among them, in September and October this year alone, the company carried out 21 buyback operations. Although the scale was significantly smaller than previous buybacks, and such a buyback scale relative to the company's current average daily turnover and free float cannot significantly reverse the trend in the short term, at a time when the share price is still dominated by chips, liquidity, and trend trading, "small but quick" buybacks can still provide sentiment support for the market that cannot be ignored.