Modern Dental Group (3600) H2 2025 earnings summary

Executive summary

• Achieved record revenue, net profit, and EBITDA for the year ended 31 December 2025, driven by digitalisation, operational efficiency, and strategic acquisitions despite macroeconomic headwinds and trade uncertainties.

• Expanded market share through digital transformation and integration of new acquisitions, notably Hexa Ceram and Digital Sleep Design.

• Maintained strong fundamentals and is positioned to capitalize on emerging opportunities in the dental prosthetics industry.

Financial highlights

• Revenue rose 11.1% year-over-year to HK$3,736.5 million; gross profit increased 15.9% to HK$2,085.0 million with a margin of 55.8%.

• EBITDA grew 32.4% to HK$938.1 million; net profit surged 47.7% to HK$601.2 million.

• Basic EPS increased 47.5% to HK63.7 cents; final dividend proposed at HK15.0 cents per share.

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

• Net cash from operating activities rose to HK$763.1 million; gearing ratio improved to 10%.

Outlook and guidance

• Expects continued momentum, leveraging digitalisation and diversified production to mitigate geopolitical and economic risks.

• Plans further investments in AI, automation, R&D, and selective acquisitions to drive growth and efficiency.

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