Hong Kong Pain Management and Health Services Group Anew Health (AVG.US) went public in the United States with a nearly 50% increase in revenue in fiscal year 2024.

Hong Kong pain management and health service provider Anew Health (AVG.US) recently filed an IPO application with the U.S. Securities and Exchange Commission (SEC) to raise up to $20 million. Based on a hypothetical offering price of $4 per share, the company's market value upon completion of the IPO would reach $220 million. Anew Health's business under the "Functional Regeneration" brand provides pain management and health services in Hong Kong. Established in 2007, the company operates three service centers in Hong Kong and offers non-surgical, non-invasive, non-pharmacological pain management treatments and functional enhancement therapy using a combination of Eastern and Western technologies through its "ANKH" brand, leveraging over 16 years of experience in pain management and strengthening. According to the prospectus, the proceeds from the IPO will be used primarily for expanding service center networks, research and product development, marketing, general operations, and working capital. 20% will be allocated to research and development for commercializing pain management treatment devices; 30% for expanding service center networks by opening new centers in Hong Kong; 25% for international market expansion by establishing new service centers in specific international markets; 10% for IT system upgrades; and 15% for general operational funds. With a gross profit growth rate exceeding 70% and record high revenue in the fiscal year 2024, reaching around $41 million, Anew Health has seen a significant improvement compared to pre-pandemic levels. Gross profit increased by 72.6% year-over-year, reaching $29.51 million, while net profit surged by 122% to $11.73 million. Over the past two years, Anew Health has achieved nearly 50% revenue growth from 2023 to 2024. The company aims to strengthen its market position through organic growth, strategic acquisitions, and investments in service centers in rapidly growing markets worldwide. In terms of research and technology, the company currently offers a method called "RDS+" (Repair, Detox and Strengthen) for pain management and functional enhancement, combining traditional Chinese meridian wisdom, modern technology, and various advanced energy-based therapeutic equipment to improve overall health and functionality. As post-pandemic activities resume, many individuals experience post-symptoms that are difficult for doctors to diagnose, including joint pain, driving the demand for non-pharmacological pain management services and indicating rapid industry growth. According to public records, a considerable percentage of middle-aged people and working professionals in Hong Kong suffer from chronic pain or sub-health issues. With an aging population, increased awareness of health and pain, and post-pandemic sequelae, the non-pharmacological pain management market still has immense growth potential. The IPO prospectus indicates that the number of customers for non-pharmacological pain management increased to nearly 266,600 in 2023, surpassing pre-2019 levels, and is expected to grow to 281,400 by 2025. Sales of non-pharmacological pain management services are projected to increase from approximately 6.674 billion Hong Kong dollars in 2023 to an estimated 7.882 billion Hong Kong dollars in 2025, with a compound annual growth rate of 8.7%, reflecting business opportunities in addressing chronic pain issues. Given Anew Health's current business coverage and potential for growth, the company is positioned for further revenue growth by expanding into broader regions and diversifying services to access new revenue streams. By focusing on non-invasive pain management technology with the integrated RDS+ solution and high-quality service experience to meet customer needs, Anew Health has built a distinctive brand and customer base in this niche sector. With an estimated market value of $220 million, equivalent to a trailing twelve-month P/E ratio of 22x and P/S ratio of 5x, and with the potential for further business expansion post-listing, Anew Health's revenue is expected to reach new highs. Combined with the ongoing development potential in the pain management and health care industry, the market has an optimistic outlook on the IPO.