Angelalign Technology (6699) H2 2024 earnings summary

Executive summary

• Total clear aligner case shipments rose 46.7% year-over-year to 359,400, with non-China global shipments up 326.4% and China shipments up 3.2%.

• Revenue increased 28.2% year-over-year to USD268.8 million, driven by a 290.4% surge in non-China global market revenue.

• Net profit grew 46.6% year-over-year to USD10.0 million; adjusted net profit was USD26.9 million, up slightly from USD26.1 million.

• Special final dividend of HKD0.38 per share recommended for 2024.

Financial highlights

• Gross profit increased 28.7% year-over-year to USD168.2 million; gross margin stable at 62.6%.

• Net profit margin improved to 3.7% from 3.3% year-over-year; adjusted net profit margin was 10.0%.

• EBITDA reached USD21.9 million; adjusted EBITDA was USD37.7 million.

• Cash and cash equivalents plus term deposits totaled USD339.1 million at year-end, down from USD379.7 million.

• R&D expenses were USD21.3 million, representing 7.9% of revenue.

Outlook and guidance

• Confident in global clear aligner industry growth; will continue dual-engine strategy of digitalization and globalization.

• Plans to expand R&D, digitalize systems, grow clinical services, increase production, and further global expansion, including new US facility.

• Will monitor macroeconomic uncertainties and adjust strategies as needed.