Investment Rating - The report gives a "Recommend" rating for the company, considering its strong product capabilities, international expansion, and high growth potential [1][47] Core Views - The company is a leading Chinese invisible orthodontic company with a dominant market share of 41.7% in 2023, significantly ahead of its competitor Invisalign (31.8%) [1] - The company has a strong brand effect due to its first-mover advantage, with 18 years of service history and a large cumulative case volume, creating high barriers for new entrants [1] - The company has a comprehensive product matrix, including Classic, Champion, Children, and COMFOS versions, catering to diverse patient needs and driving steady growth in domestic market share [1] - International business is accelerating, with overseas cases reaching 33,000 in 2023, contributing to a second growth engine despite short-term profitability pressure [1] - The company is expected to achieve revenue of RMB 1.748 billion, RMB 2.280 billion, and RMB 2.670 billion in 2024-2026, with YoY growth of 18.4%, 30.4%, and 17.1%, respectively [1] Financial Forecasts - Domestic case volume is expected to grow at a CAGR of 10%+, with 2024-2026 case volumes of 239,900, 268,500, and 297,800, respectively [44] - Overseas case volume is projected to grow rapidly, with 2024-2026 case volumes of 76,400, 153,800, and 199,900, respectively, driven by international expansion [44] - Revenue from overseas business is expected to reach RMB 378 million, RMB 842 million, and RMB 1.143 billion in 2024-2026, with YoY growth of 149.05%, 122.69%, and 35.70%, respectively [44] - Gross margin is expected to remain stable, with domestic invisible orthodontic gross margin at 65.2%, 66.0%, and 66.0% in 2024-2026, and overseas gross margin at 57.59%, 61.41%, and 62.55% [44] - Net profit is forecasted to be RMB 86 million, RMB 253 million, and RMB 389 million in 2024-2026, with YoY growth of 61.2%, 193.6%, and 53.8%, respectively [44] Market and Industry Analysis - The Chinese orthodontic market is expected to grow from USD 7.9 billion in 2020 to USD 29.6 billion in 2030, with a CAGR of 14.2% [17] - The global invisible orthodontic market is projected to grow from USD 12.2 billion in 2020 to USD 46.2 billion in 2030, with a CAGR of 14.2% [32] - Invisible orthodontics is gaining popularity due to its advantages in comfort, aesthetics, and treatment efficiency, with a growth rate of 34.59% in China [20] - The penetration rate of invisible orthodontics in China is low at 10.5% in 2019, compared to 33.1% in the US, indicating significant growth potential [25] Company Strengths - The company has a strong brand and high doctor loyalty due to its first-mover advantage and extensive case database, making it difficult for new entrants to compete [28] - The company provides comprehensive backend support for general dentists, enabling them to offer invisible orthodontic services and expanding the service population [27] - The company has a diversified product portfolio, including Classic, Champion, Children, and COMFOS versions, catering to different market segments and driving penetration in lower-tier cities [30] - The company is actively expanding its international business, with operations in over 30 countries and regions, and has established a strong presence in Brazil through the acquisition of Aditek [39][40]

Company and Industry Overview * **Company**: Timesmile Angel, a leading orthodontic company specializing in invisible braces. * **Industry**: Orthodontic market, particularly the invisible braces segment. * **Market Size**: Global market for invisible braces is estimated to be 4-5 million cases, with a significant potential for growth in China. * **Growth Rate**: The Chinese orthodontic market is expected to grow at a rate of over 10% annually, with potential for higher growth in lower-tier cities. Key Points **1. Market Dynamics**: * **Domestic Market**: The domestic market for invisible braces is still in the early stages of growth, with a current penetration rate of around 13%. However, there is significant potential for growth, especially in lower-tier cities. * **International Market**: The international market for invisible braces is larger than the domestic market, with a significant opportunity for Timesmile Angel to capture market share. * **Competition**: The Chinese orthodontic market is characterized by a duopoly, with Timesmile Angel and Ortho-Tain holding significant market share. However, there is increasing competition from domestic brands. **2. Timesmile Angel's Strengths**: * **Product Portfolio**: Timesmile Angel offers a diverse range of products, including classic, champion, children's, and comfort versions, catering to different customer needs and price points. * **Product Quality**: Timesmile Angel's products are well-received in the market, with a strong focus on quality and comfort. * **Sales Channels**: Timesmile Angel has a robust sales network, including direct sales and distribution channels, enabling the company to expand its market reach. * **Brand Awareness**: Timesmile Angel has established a strong brand presence in the market, with a strong focus on marketing and brand building. **3. Future Outlook**: * **International Expansion**: Timesmile Angel is actively expanding its international market, with a focus on Europe, the United States, and other regions. The company aims to capture a significant market share in the international market. * **Domestic Market**: Timesmile Angel is focusing on expanding its market share in the domestic market, particularly in lower-tier cities, through its comfort and children's product lines. * **Valuation**: Timesmile Angel is currently valued at a premium, but the company's strong growth prospects and market position justify the valuation. **4. Key Risks**: * **Competition**: Increasing competition from domestic and international brands could impact Timesmile Angel's market share. * **Regulatory Changes**: Changes in regulations could impact the orthodontic industry. * **Economic Factors**: Economic downturns could impact consumer spending on orthodontic treatments. Conclusion Timesmile Angel is a leading orthodontic company with a strong market position and significant growth potential. The company's focus on product quality, sales channels, and brand building, combined with its international expansion plans, positions it well for future growth. However, the company faces challenges from increasing competition and economic factors that could impact its performance.

Summary of the Conference Call Company and Industry Involved - The conference call pertains to the beauty retail industry, specifically focusing on 德邦 (Debon) and its analysis of the current market trends and opportunities in the beauty sector [1]. Core Points and Arguments - The call begins with a disclaimer emphasizing that the content is intended for Debon Securities Research clients and does not constitute investment advice, urging participants to make independent investment decisions and assume their own risks [1]. Other Important but Possibly Overlooked Content - The call highlights the importance of understanding the beauty retail landscape and the potential implications for investment strategies, although specific data and insights from the report are not detailed in the provided content [1].

Investment Rating - The report gives a "Buy" rating for the company, Angelalign (06699.HK), as it is the first coverage of the stock [1]. Core Insights - The company is positioned as a leader in the invisible orthodontics market, with significant growth potential both domestically in China and internationally. The report highlights the high prevalence of malocclusion and the advantages of invisible orthodontics as a superior alternative, predicting strong market growth [3][12]. - The invisible orthodontics market in China is expected to grow from 13 billion RMB in 2023 to 34 billion RMB by 2030, with a CAGR of 14.7%. The report emphasizes the increasing consumer awareness and demand for aesthetic solutions, alongside a low supply of orthodontic professionals compared to developed countries [3][27]. - The company has a comprehensive product matrix and a strong focus on R&D, which enhances its competitive edge. It has established a solid network of dental professionals and is expanding its distribution channels to penetrate lower-tier markets [3][23]. Summary by Sections Company Overview - Angelalign is a leading provider of invisible orthodontic technology and solutions, established in 2003. It has developed a full industrial chain in orthodontics and has over 150 patents in various fields related to dental care [12][17]. Market Overview - The global prevalence of malocclusion is high, with over 70% in various age groups in China. The report notes that the demand for invisible orthodontics is driven by rising aesthetic awareness and the limitations of traditional orthodontic methods [27][28]. Competitive Advantages - The company has a well-rounded product offering that meets diverse consumer needs, supported by a strong R&D team and digital platforms that empower dental professionals. The number of dental professionals served has doubled since 2018, indicating strong engagement and loyalty [3][23]. Future Development - The company is actively expanding into overseas markets and focusing on lower-tier cities in China. It aims to leverage its cost advantages and distribution channels to capture market share [3][24]. The report forecasts revenue growth from 1.73 billion RMB in 2024 to 2.46 billion RMB in 2026, with net profits expected to rise significantly during the same period [3][4].

华福证券 医美服务 2024年05月26日 公 司 时代天使（06699.HK） 买入（首次评级） 研 究 国内隐形正畸龙头，海外市场加速突破 当前价格： 67.40港元 基本数据 投资要点： 总股本/流通股本(百万股) 169.22/169.22 流通市值(百万港元) 11,405.49  我们认为公司基本面正在发生非常积极的变化，公司产品力在海外医 每股净资产(港元) 21.81 生中的认可度、公司海外市场营销策略的有效性均已逐步得到验证。海外 资产负债率(%) 28.36 市场成为公司第二成长曲线的预期正快速兑现落地，业绩也将有望随着海 一年内最高/最低价(港元) 85.00/43.70 外市场的放量实现高弹性增长。 一年内股价相对走势  国内市场渗透率提升空间巨大，基层市场快速释放增长潜力。 公 司 对比美国，国内隐形正畸治疗渗透率仍处于较低水平，2020年仅有美国渗 首 透率的1/20，行业成长空间巨大。分区域来看，基层市场（三线及以下城 次 市）渗透率更低，而近年来随着产品可及性提升、基层市场经济水平发展 覆 等多重因素推动下，基层市场需求逐渐释放，通过打造差异化的产品矩阵， 盖 均衡的销售网 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 75.45 HKD [1] Core Insights - The company has achieved rapid growth in case numbers, with a year-on-year increase of over 30% [1] - In 2023, the company reported revenue of 1.476 billion RMB, a year-on-year growth of 16.24%, while the net profit attributable to shareholders decreased by 74.99% to 53.475 million RMB [1] - The company continues to lead the invisible orthodontics market in China, with a market share that has been maintained for three consecutive years [1] - The international business is progressing rapidly, with overseas revenue reaching 145 million RMB in 2023, accounting for 13.45% of total cases [1] Financial Performance - In 2023, the company achieved a gross margin of 62.38% and a net margin of 3.30%, with a decrease in net profit margin of 13.45 percentage points year-on-year [1] - The sales expense ratio increased by 9.93 percentage points to 33.41%, while the management expense ratio rose by 4.37 percentage points to 18.94% [1] - The company expects revenue for 2024-2026 to be 1.776 billion, 2.184 billion, and 2.693 billion RMB respectively, with adjusted net profits of 0.70 billion, 1.56 billion, and 2.57 billion RMB [1] Market Strategy - The company is actively penetrating third and fourth-tier markets in China, which has contributed to the increase in case numbers [1] - The introduction of new products, such as the next-generation KiD pre-traction solution, is expected to drive strong growth in the children's segment [1] - The company has registered 185 patents and 16 software copyrights, indicating a strong competitive advantage [1]

Financial Performance - Total cases reached 245,000 in 2023, representing a year-on-year growth of 33%[5] - Adjusted net profit for 2023 was RMB 179 million, with the adjusted net profit for the China business reaching RMB 256 million, a nearly 30% increase year-on-year[5] - Revenue for the year ended December 31, 2023, was approximately RMB 1,476.0 million, an increase of 16.2% from approximately RMB 1,269.7 million for the year ended December 31, 2022[16] - Gross profit for the year ended December 31, 2023, was approximately RMB 920.7 million, up 17.2% from approximately RMB 785.7 million for the year ended December 31, 2022, with a gross margin of 62.4%[16] - Adjusted net profit for the year ended December 31, 2023, was approximately RMB 178.9 million, a decrease of 16.0% from approximately RMB 213.0 million for the year ended December 31, 2022, primarily due to investments in international business[17] - Operating cash flow for the year ended December 31, 2023, was approximately RMB 165.9 million, an increase of 12.9% from approximately RMB 146.9 million for the year ended December 31, 2022[17] - The number of cases achieved in the domestic market increased by 15.3% to approximately 212,000 cases for the year ended December 31, 2023[16] - International market revenue for the year ended December 31, 2023, was approximately RMB 145.3 million[16] Product Development and Innovation - The company launched several new products in 2023, including the angelLink interface system and the next-generation KiD pre-traction solution, enhancing treatment precision for experienced doctors[10] - The company is focused on building a sustainable orthodontic market based on trust and treatment quality, addressing the common needs of clinical doctors[8] - The company continues to invest strategically in technological innovation and digital orthodontics to capture market opportunities[24] - The company launched the angelLink system in June 2023 to enhance clinical efficiency for orthodontists, addressing specific clinical challenges[25] - The KiD product line, targeting early orthodontic treatment, showed strong growth performance during the reporting period[26] - The company introduced a new oral care solution covering the entire patient lifecycle, enhancing brand influence among consumers[26] International Expansion - International cases accounted for approximately 14% of total cases in 2023, with 33,000 international cases reported[6] - The company has established 8 international offices and operates in over 30 countries and regions, with Europe being one of the fastest-growing markets[7] - The company successfully entered over 30 countries and regions since officially launching international operations in 2023[16] - International business has become a significant growth driver, with 33,000 cases completed during the reporting period, following the acquisition of ADITEK DO BRASIL S.A. to enter the Brazilian market[27] Research and Development - As of December 31, 2023, the company held 185 patents and 16 software copyrights, reflecting its strong commitment to innovation and intellectual property[10] - The company invested RMB 173.6 million in R&D, accounting for 11.8% of total revenue, and has registered 185 patents and 16 software copyrights as of December 31, 2023[32] - The company emphasizes the importance of clinical application and continuous improvement of new technologies, ensuring they are user-friendly and yield predictable results[10] Corporate Governance and Management - The company has established a robust governance structure with various committees to oversee strategic initiatives and ensure compliance with regulatory standards[69] - The management team includes experienced professionals with backgrounds in healthcare investment and technology, indicating a strong leadership foundation for future growth[70] - The board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific areas of the company's affairs[182] - The board composition includes a balanced mix of experience in management, business development, IT, law, and finance, with one female director and seven male directors[184] Market Position and Strategy - The company has maintained its position as the leading brand in China's invisible orthodontics market for three consecutive years, achieving 212,000 cases domestically, with a steady increase in the contribution from tier three and four cities[27] - Revenue from invisible orthodontic solutions accounted for 86.9% of total revenue, amounting to RMB 1,282.0 million in 2023[40] - The company is aware of macroeconomic uncertainties that may impact orthodontic treatment case numbers and consumer spending, necessitating ongoing assessment and strategic responses[38] Shareholder and Financial Management - The board proposed a special final dividend of HKD 1.1 per share for the year ended December 31, 2023[17] - The company has established service contracts with its executive directors, with an initial term of three years[89] - The company has not issued any debt securities during the reporting period[84] - The company repurchased a total of 643,600 shares during the reporting period[84] Compliance and Risk Management - The company adheres strictly to international and regional data security laws and regulations, continuously improving its data security measures[12] - The company has not experienced any significant legal or regulatory violations during the reporting period[166] - The company faces risks including economic uncertainty and changing regulations impacting market conditions[80] Employee and Talent Management - The company has established a large team of medical designers and localized clinical support teams, providing comprehensive support to thousands of doctors globally[11] - The company has adopted various employee incentive plans, including pre-IPO share reward plans and post-IPO stock option plans, to promote long-term growth[105] - The company has established a post-IPO restricted share unit plan to recognize contributions and incentivize employees and directors to continue their engagement with the group[149]

海 外 研 证券研究报告 究 ＃industryId＃ 医药 ＃06699 .HK ＃时dy代Com天pa使ny＃ 港股通（沪/深） dyStockco d e＃ ＃title＃ ＃investSu无gge评stion级＃ ＃ 国际市场表现亮眼，全球化战略稳步推进 inve stS ugg esti ＃createTime1＃ 2024年 03月 27日 onChan ge＃ 公 投资要点 ＃市场ma数rk据et Data＃ 司 日期 2024/3/25 ＃ ⚫ sum 时ma 代ry＃ 天 使发布 2023年年度业绩公告，收入、案例数增长稳健。2023年公司 点 收盘价（元港币） 75.80 实现营业收入14.76亿元，同比增长16.2%；2023年隐形矫治达成案例总数 评 总股本（百万股） 169 约24.5万例，同比增长33.2%。 报 流通股本（百万股） 169 ⚫ 国内市场增长平稳，低线城市渗透率提升。2023年公司国内市场总收入13.3 净资产（百万元） 3,340 亿元，同比增长5.5%，在达成案例、收入及利润方面保持稳定增长，在中国 告 总资产（百万元） 4,757 内地市场占有率继续保持第一 ...

Investment Rating - The report maintains an "OUTPERFORM" rating for the company, with a target price of HKD 103.50, indicating a potential upside from the current price of HKD 75.10 [3][5]. Core Insights - The company has successfully established a second growth curve through international expansion, achieving a total of approximately 245,000 invisible orthodontic cases in 2023, a 33% increase year-on-year. Domestic cases accounted for 212,000 (+15%), while international cases reached 33,000, representing 13% of the total [8][9]. - The company is focusing on penetrating third and fourth-tier cities in China, leading to a steady improvement in domestic business, with revenue of approximately CNY 1.476 billion in 2023, reflecting a 16% increase [9][10]. - The overall gross margin improved to 62% in 2023, driven by advancements in manufacturing processes, while the domestic invisible orthodontic solutions achieved a gross margin of about 66% [10][11]. - The company anticipates revenue growth of 19% in 2024, reaching CNY 1.761 billion, and expects adjusted net profit to grow by 1% to CNY 180 million [12]. Financial Performance Summary - In 2023, the company reported a net profit attributable to shareholders of CNY 53 million, a decrease of 75%, while the adjusted net profit was approximately CNY 179 million, down 16% [10][11]. - The domestic business generated an adjusted profit of about CNY 256 million, with a profit margin of 19%, while the international business reported an adjusted loss of approximately CNY 211 million [10][11]. - The company maintained a strong cash flow position, with a net operating cash flow of approximately CNY 166 million and cash and cash equivalents at the end of the year amounting to approximately CNY 2.69 billion [11][12].

智通财经APP获悉，时代天使(06699)涨幅扩大逾18%，高见77.4港元创去年7月底以来新高。截至发 稿，涨17.2%，报76.3港元，成交额1.66亿港元。 消息面上，时代天使发布2023年度业绩，该集团取得收入人民币14.76亿元(单位下同)，同比增加 16.24%；公司拥有人应占利润5347.5万元；每股盈利0.32元，拟派发特别末期股息每股1.1港元。期内集 团国内业务保持稳健增长，而国际业务快速发展。整体隐形矫治达成案例数从约18.39万例同比增长 33.2%至约24.5万例。 此外，时代天使昨日宣布，以零代价自合伙企业收购CC Orthodontics所有股权公告，合伙企业旨在投资 全球数字化正畸价值链中的创新数字化技术及产品。CC Orthodontics为合伙企业为投资其投资组合公司 而成立的投资控股公司。截至该公告日期，其已投资全球数字化正畸产业链上的数家公司。 ...