Incidents:
On March 20, 2025, the company released its 2024 annual report. In 2024, total operating income was 1.932 billion yuan, up 28.2% year on year, and net profit to mother was 87.0803 million yuan, up 60.88% year on year. Operating cash flow was $0.122 billion, down 26.69% year over year.
Reviews:
The Chinese market base is stable, and the overseas market is growing significantly
Angel of the Times has maintained a leading position in China's invisible correction market, and the domestic market has maintained steady development. In 2024, mainland China's revenue reached 1.354 billion yuan, an increase of 1.76% over the previous year; the international market is an important growth engine for the angel of the times. The rapid development of the international market has driven rapid growth in overall revenue and achieved a continuous increase in brand influence. In 2024, the company's overseas revenue reached 0.579 billion yuan, an increase of 298.91% year-on-year.
The main business is expanding steadily, and the number of cases of invisible correction is growing rapidly
In 2024, the company's total number of invisible correction cases reached 0.3594 million, an increase of 46.7% over the previous year. The total number of domestic invisible correction cases was about 0.219 million, an increase of 3.2% over the previous year. The number of overseas invisible treatment cases increased from 0.033 million cases in 2023 to 0.141 million in 2024, an increase of 326% over the previous year, accounting for 39.1% of the total number of cases worldwide. Main business:
1) Revenue from invisible correction solutions was 1.292 billion yuan, down 1.3% from the previous year. The main reason was that the company implemented a “sinking market” strategy in China, and the average product price declined due to expansion to domestic third- and fourth-tier cities;
2) Revenue from sales of invisible braces was 0.532 billion yuan, up 397.8% year-on-year, mainly due to increased revenue due to overseas business expansion.
Global business is growing rapidly, and localized operations adapt to local conditions
In 2024, the company's global business entered a stage of rapid growth, with global markets in more than 50 countries other than China. The company values the doctor experience, maintains high-quality medical design support and a stable delivery cycle. In addition, the company actively participated in major international orthodontic conferences in Europe, North America and the Americas to showcase clinical applications and data results of products and medical technology solutions. The international version of iOrthoApp was officially launched in January 2025, improving the diagnosis and treatment experience and service efficiency of overseas doctors.
In order to improve local operation capabilities, the company further expanded treatment plan design and orthotic device production capacity in Brazil. In March 2025, the company announced that it would build a new manufacturing facility in the Greater Milwaukee area of Wisconsin, USA, covering an area of 0.052 million square feet, equipped with its own highly automated 3D printing technology. Once completed, the factory will become one of the most advanced manufacturing centers for invisible braces in the world.
Innovation drives digital transformation and services enable quality upgrading
In 2024, focusing on key aspects of the invisible orthodontic diagnosis and treatment link, the company launched a series of digital tools to help doctors improve treatment accuracy. The company continues to promote the upgrading of intelligent manufacturing, improve the level of production automation and production efficiency, and has also built an intelligent visual inspection and automatic distribution system to replace manual inspection and material distribution with machines to improve product quality control standards. The company has upgraded multiple product lines to enhance the brand's core competitiveness with higher quality product solutions and medical services.
Profit forecast: We expect the company's revenue for 2025-2027 to be 2.29/2.726/3.225 billion yuan (2.184/2.685 billion yuan before 2025/2026, respectively), and net profit to mother of 0.088/0.151/0.269 billion yuan (0.07/0.156 billion yuan before 2025/2026, respectively). The reason for the increase was that the company accelerated development of overseas markets and maintained a “buy” rating.
Risk warning: Overseas market expansion falls short of expectations, geopolitical risk, market competition risk.
