The company has been engaged in invisible orthodontics for 20 years and its performance has continued to grow at a high level. The company has been deeply engaged in invisible orthodontics in China for nearly 20 years, and its development is driven by sales and R & D. the income and net profit have increased rapidly. In 2021, H1 achieved an operating income of 817 million yuan (+ 26.4%) and a net profit of 150 million yuan (+ 118.9%).
The development path of the company is clear, by increasing the number of doctors' cooperation, "expanding the number of cases", rapidly increasing the ability of database to optimize backstage orthodontic design, "improving doctors and patients' experience,"increasing individual doctor shipments" to expand the number of cases, forming a virtuous circle of brand expansion. The number of 2021H1 cooperative dentists is 17300, + 48% compared with the same period last year. The increase in the number of cooperative doctors has contributed to the continuous growth of the number of completed cases in the company, with a 2021H1 of 79500 cases and a cumulative total of more than 570000 cases.
Invisible orthodontic patients have a large base, low permeability and large room for industry development. The prevalence rate of malocclusion is about 72%, the patient base is large, and the domestic treatment penetration rate is less than 0.3%, which is much lower than that in Europe and the United States (1.8% in the United States and 0.8% in Europe). The market size is 38.2 billion yuan in 2019 and has maintained rapid growth in recent years.
Invisible orthodontic products have strong advantages in beauty, hygiene, comfort and treatment cycle, and the proportion of invisible orthodontic products is also lower than that in Europe and the United States (33.3% in China, 10.3%VS in the United States and 17.5% in Europe). With the upgrading of consumption, the promotion of image health awareness, the expansion of the team of orthodontists, the improvement of the utilization rate of general practitioners and the enrichment of product lines, the proportion of invisible orthodontics is expected to increase gradually.
Inspiration from the technological development experience of Arley, an international invisible orthodontic giant. Arley Technology has been established for more than 20 years, constantly innovating in orthodontic product technology, providing considerate service to doctors and patients, acquiring complementary advantages of enterprises, and launching a rich product line. The experience gained in the process of treatment and sales feeds the company to continue to carry out technological updates and product iterations to better serve doctors and patients. The 20-year experience of orthodontic giants shows that the invisible orthodontic industry has high barriers in technology, products and services, and it takes a long time for new entrants. the leaders in the industry are expected to maintain a leading position with the accumulation of technology, services and experience.
Profit forecast: the COMFOS and children's versions launched by the company have their own emphasis, and the price of COMFOS is lower, mainly aimed at the sinking market, and the children's version is aimed at 6-12-year-old children, expanding the age group.
It is estimated that the company's income growth rate from 2021 to 2023 is 34.1%, 34.4% and 29.2% respectively, and the net profit growth rate is 58.9%, 46.7% and 31.8% respectively. The invisible orthodontic industry has a vast market space, and the company is expected to maintain or even exceed the growth rate of the industry by virtue of the "snowball" of local data, the promotion of brand power and the full service of doctors.
Risk factors: product research and development or sales are not as expected; peer competition intensifies; dentist customer loss.