Modern Dental Group (3600) H1 2025 earnings summary

Executive summary

• Achieved record revenue, net profit, and EBITDA for the six months ended 30 June 2025, driven by digitalisation, operational efficiency, and strategic acquisitions despite macroeconomic headwinds and trade uncertainties.

• Expanded market share through digital transformation and acquisitions, notably Hexa Ceram in Thailand and Digital Sleep in Australia.

• Maintained solid fundamentals and a diversified global presence, positioning for future growth.

• Interim dividend declared at HK10.7 cents per share, up from HK8.0 cents last year.

Financial highlights

• Revenue rose 7.8% year-over-year to HK$1,834.8 million, mainly from organic growth in Europe and Australia and the Hexa Ceram acquisition.

• Gross profit increased 10.0% to HK$1,005.5 million, with gross margin up to 54.8%.

• EBITDA grew 21.6% to HK$456.7 million; adjusted EBITDA margin at 24.9%.

• Net profit surged 34.7% to HK$288.7 million; basic EPS was HK30.37 cents.

• Profit from core operations up 28.7% to HK$295.0 million.

Outlook and guidance

• Digitalisation and industry consolidation expected to drive further market share gains and operational efficiency.

• Diversified supply bases and global footprint provide resilience against geopolitical and trade risks.

• Continued investment in digital workflows, R&D, and production capacity to support long-term growth.

• Cautious optimism for mid/long-term growth, especially in Greater China, despite ongoing price competition and regulatory changes.