Modern Dental Group (3600) investor relations material

Executive summary

• Achieved record revenue of HK$2,032.5 million for H1 2026, up 10.8% year-over-year, driven by digitalization, operational efficiency, and market share gains in Europe and Australia, despite macroeconomic headwinds and trade uncertainties.

• Net profit increased 30.8% year-over-year to HK$377.6 million, with basic EPS up 31.9% to HK40.07 cents and gross profit margin improving to 58.1% from 54.8%.

• Interim dividend declared at HK14.0 cents per share, up from HK10.7 cents last year.

• Digital solution case volume surged 29.2% to 627,773 cases, reflecting strong adoption of intra-oral scanners.

• Strategic acquisitions in North America and Southeast Asia enhanced product offerings and regional presence.

Financial highlights

• Gross profit margin rose to 58.1% (from 54.8%), gross profit up 17.4% to HK$1,180.9 million.

• EBITDA increased 22.8% to HK$560.7 million; adjusted EBITDA margin improved to 27.9%.

• Net profit margin improved to 18.6%; profit from core operations up 31.3% to HK$387.4 million.

• Cash and cash equivalents at HK$828.9 million as of 30 June 2026; operating cash flow HK$330.2 million.

• Gearing ratio reduced to 6% from 10% at year-end 2025.

Outlook and guidance

• Geopolitical and macroeconomic uncertainties persist, but diversified production and global distribution provide resilience.

• Digitalization trend expected to drive further consolidation and margin expansion; focus on AI, automation, R&D, and digital innovation.

• Continued investment in production capacity, selective acquisitions, and partnerships to sustain growth.