Modern Dental Group (3600) H2 2025 earnings summary

Executive summary

• Achieved record high revenue, EBITDA, and net profit in FY2025, driven by digital transformation, operational efficiency, and strategic acquisitions despite macroeconomic headwinds and trade uncertainties.

• Expanded market share through acquisitions, notably Hexa Ceram in Thailand and Digital Sleep Design in Australia, and continued investment in digital platforms and education.

• Strengthened global leadership with a diversified production footprint and enhanced digital dental solutions, maintaining strong fundamentals and positioning for emerging opportunities.

Financial highlights

• Revenue rose 11.1% year-over-year to HK$3,737m; gross profit up 15.9% to HK$2,085m with a margin of 55.8%.

• EBITDA increased 32.4% to HK$938m; net profit surged 47.7% to HK$601m.

• EPS climbed 47.5% year-over-year to 63.7 HK cents; final dividend proposed at HK15.0 cents per share.

• Adjusted EBITDA margin improved to 25.2% from 22.0% last year.

• Return on equity rose to 19.9%, up 4.6 p.p. year-over-year.

Outlook and guidance

• Plans to further digitalize workflows, expand proprietary solutions, and grow the TrioClear aligner business, leveraging digitalisation and diversified production to mitigate risks.

• Continued investment in AI, automation, R&D, education, and selective acquisitions to reinforce global leadership and drive growth.

• Enhanced production capacity and resilience with new facilities in Dongguan, Vietnam, and Thailand.

• Digital solution cases now represent 35-40% of total volume, with ongoing focus on margin expansion and market share gains.