C-MER Medical (3309) H1 2026 earnings summary

Executive summary

• Revenue grew 8.5% year-over-year to HK$1,024.4 million for the six months ended 30 June 2026, driven by growth in Mainland China dental and ophthalmic businesses.

• Profit attributable to equity holders rose 0.2% to HK$50.0 million, while adjusted profit (excluding Mainland China other business losses) declined 5.2% to HK$66.0 million.

• Gross profit increased 10.0% to HK$323.4 million, with gross margin improving to 31.6%.

• Net cash from operating activities more than doubled to HK$218.6 million.

Financial highlights

• Revenue from Mainland China rose 16.3% to HK$554.9 million, while Hong Kong revenue was stable at HK$469.6 million.

• Dental services revenue surged 19.0% to HK$282.5 million, mainly due to Shenzhen CKJ's brand strength.

• Ophthalmic services revenue grew 3.0% to HK$631.5 million, with Mainland China demand offsetting a slight decline in Hong Kong.

• Net profit margin was 5.6%, down from 5.9% a year earlier.

• Basic and diluted EPS were HK4.21 cents.

Outlook and guidance

• Demand for ophthalmic services in Hong Kong remains strong due to an aging population.

• Mainland China ophthalmic business continues to improve but faces intense competition.

• Cross-border medical consumption is expected to benefit dental and hospital operations in Shenzhen.

• Strategic focus on expanding ophthalmic and dental services, operational efficiency, and innovation investments.