CGSI Reiterates 'Add' Rating on Modern Dentalwith Raised Target Price of HK$6.88
CGSI has maintained an 'Add' rating on Modern Dentalwith a raised target price of HK$6.88. The company's 1H25 net profit increased by 33% year-on-year to HK$285 million, driven by strong operations in Europe and Australia. CGSI anticipates stable revenue growth in FY25, supported by improved demand for dental products and enhanced production efficiency. The acquisition of Hexa Ceram is expected to expand Modern Dental's market presence in Southeast Asia, contributing to revenue growth through FY27. FY25 net profit is forecasted at HK$545 million, with EPS estimates raised by 1-2%.
HONG KONG, Sept 18, 2025 - (ACN Newswire) - CGSI reiterates the 'Add' rating on Modern Dental (03600.HK) with a higher target price of HK$6.88 in a recent report. According to the report, Modern Dental Group's 1H25 net profit grew 33% yoy to HK$285m, slightly higher than expected due to stronger Europe and Australia operations. CGSI expects Modern Dental to deliver stable revenue growth in FY25 with an improved EBITDA margin of 24.0% (vs. 21.1% in FY24), driven by 1) stronger demand for high quality dental prosthetic products in Europe and Australia, 2) sales volume recovery in the China market due to its better product quality and brand reputation among dentists, and 3) improved production efficiency in Dongguan, Vietnam, US and Thailand factories.
CGSI believes the acquisition of Hexa Ceram, Thailand's largest dental laboratory in terms of market share, will diversify the company's global distribution and sales network with a larger presence in the Southeast Asia (SEA) region, driving revenue growth in FY25-27F. CGSI reiterates Add on Modern Dental as it is believed that the company will further gain global market share in dental prosthetics. CGSI raises the FY25-26F EPS forecasts by 1-2% on new SEA contribution, with a FY25 net profit forecast of HK$545m. The target price rises to HK$6.88, as it rolls over to FY26F and raises EPS forecasts, based on 10x FY26F P/E.
*Disclaimer: The views given in this article are extracted from relevant research report. For detailed information, please refer to the full report.
Source: Modern Dental Group Limited
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