瑞银发表研究报告指，时代天使中期业绩胜预期，收入达1.61亿美元，按年增长33.1%，高过该行预 期；净利润1420万美元，按年增长584%，符合预期；经调整净利润为1950万美元，按年增长85%；总 个案量达按年增长47.7%，毛利率持平于62.4%。该行将其目标价由82港元上调至91港元，上调2025至 27年度收入预测9%、6%及7%，重申"买入"评级。 ...

Core Viewpoint - Morgan Stanley updates the risk-return forecast for Angelalign, raising revenue projections for 2025, 2026, and 2027 by 6.9%, 9.3%, and 10.6% respectively to align with management's target of 250,000 cases in the Chinese market and 240,000 to 250,000 cases in overseas markets [1] Revenue Projections - Revenue forecasts for 2025, 2026, and 2027 have been increased by 6.9%, 9.3%, and 10.6% respectively [1] Profit Forecasts - Net profit estimates for 2026 and 2027 have been raised by 6.3% and 11% respectively, indicating faster-than-expected expansion in overseas markets [1] Target Price Adjustment - The target price based on discounted cash flow (DCF) has been raised from HKD 65 to HKD 74, maintaining a rating of "in line with the market" [1]

Core Viewpoint - Goldman Sachs has raised the target price for Angelalign Technology (06699) from HKD 78.8 to HKD 81.3, maintaining a "Buy" rating based on the Sum of the Parts (SOTP) valuation method [1] Financial Performance - Angelalign's revenue for the first half reached USD 161 million, representing a year-on-year increase of 33%, exceeding Goldman Sachs' expectations, primarily driven by rapid expansion in overseas markets [1] - The gross margin remained stable at 62.4%, unchanged from the same period last year, while the overseas gross margin improved from 58.3% in the previous year to 61.2% [1] Strategic Outlook - The management has raised the annual case volume guidance to between 490,000 and 500,000, indicating a year-on-year growth of 36% to 39% [1]

Core Viewpoint - Goldman Sachs has raised the target price for Angelalign Technology (06699) from HKD 78.8 to HKD 81.3, maintaining a "Buy" rating based on the Sum of the Parts (SOTP) valuation method [1] Financial Performance - Angelalign's revenue for the first half reached USD 161 million, representing a year-on-year increase of 33%, exceeding Goldman Sachs' expectations, primarily driven by rapid expansion in overseas markets [1] - The gross margin remained stable at 62.4%, unchanged from the same period last year, despite strategic price adjustments in domestic operations [1] - The overseas gross margin improved from 58.3% in the same period last year to 61.2% [1] Guidance and Projections - Management has raised the annual case volume guidance to between 490,000 and 500,000, indicating a year-on-year growth of 36% to 39% [1]

Core Viewpoint - Goldman Sachs reports that Angelalign's revenue for the first half of the year reached $161 million, representing a 33% year-on-year increase, exceeding the bank's expectations, primarily driven by rapid expansion in overseas markets [1] Financial Performance - Revenue for the first half of the year was $161 million, up 33% year-on-year [1] - Gross margin remained stable at 62.4%, unchanged from the same period last year [1] - Domestic business maintained good profitability despite strategic price adjustments [1] - Overseas gross margin increased from 58.3% in the same period last year to 61.2% [1] Guidance and Valuation - Management raised the full-year case volume guidance to between 490,000 and 500,000, indicating a year-on-year growth of approximately 36% to 39% [1] - Using the Sum of the Parts (SOTP) valuation method, Goldman Sachs raised its target price from HKD 78.8 to HKD 81.3, maintaining a "Buy" rating [1]

Summary of the Conference Call for Times Angel Company Overview - **Company**: Times Angel - **Industry**: Orthodontics and dental technology Key Points and Arguments Financial Performance - **Revenue Structure**: In the first half of the year, Times Angel reported revenue of $89.68 million from the Chinese market and $71.67 million from international markets [2][4] - **Case Growth**: The number of cases in the Chinese market grew by 14% to 109,000, while international cases surged by 103.5% to 117,000 [2] - **Operating Profit**: Operating profit in China increased by 52% to $17.19 million, while losses in international markets narrowed to $5.43 million [2][5] - **Cash Flow**: Operating cash flow increased by 194.4% to $17.54 million [2] Market Strategy - **Pricing Strategy**: The company expanded its case numbers in China through strategic price reductions, while international gross margins improved by 3 percentage points to 61.2% [2] - **Product Innovation**: New products launched include the A10 Angel Expander and the headgear-style muscle stimulator, along with digital tools like the i also platform and "Angel Xiao Zhi" [2][6] - **Supply Chain Investment**: Plans to increase investment in supply chain and infrastructure to strengthen sales, marketing, clinical support, and customer service [2][7] Future Projections - **Case Projections for 2025**: Expected total cases to reach between 490,000 and 500,000, with 250,000 in China and 240,000 to 250,000 internationally [3][10] - **Profitability Timeline**: The company aims for international operations to achieve monthly profitability by the first half of 2027 [3][11] Competitive Landscape - **Differentiation Strategy**: The company does not intend to engage in price wars but will focus on product and service differentiation [3][15] - **Response to Competition**: Plans to enhance clinical service teams and accelerate new customer onboarding in response to increasing competition [3][13] Challenges and Risks - **Increased Losses**: Anticipated significant expansion of international operating losses in the second half of the year due to delayed expenses, recruitment issues, and increased tariffs [3][17] - **Patent Litigation**: Facing patent lawsuits from Align Technology, which could impact operations, but the company is prepared with legal strategies [19] Market Dynamics - **Domestic Market Trends**: The domestic market has seen a decline in average prices, with a focus on maintaining market share through competitive pricing strategies [20] - **Collective Procurement Policies**: New collective procurement policies are being implemented, which may rationalize product prices and require the company to adapt [21] Strategic Partnerships - **Investment in Shuyaki**: The investment in Shuyaki aims to quickly penetrate emerging markets, leveraging complementary channels while maintaining independent operations [3][23] Global Supply Chain Development - **Supply Chain Resilience**: Building a more resilient global supply chain with production and design centers in key regions like Brazil and Southeast Asia [8][18] Macro Environment Impact - **Consumer Sentiment**: Global consumer willingness has decreased, affecting demand for non-essential medical services, including orthodontics [26] Additional Important Points - **Focus on Early Treatment**: Plans to enhance public awareness in early orthodontic treatment and strengthen professional service capabilities in lower-tier markets [2][7] - **Data Security and Compliance**: Emphasis on strengthening data security and compliance with international regulations [2][9]

Market Overview - US stock indices experienced adjustments, with European markets also facing challenges, particularly in France where the CAC 40 index fell over 2% [1] - Hong Kong stocks corrected after a strong rally, closing down 1.18% [1] - Optimism regarding potential Fed rate cuts was tempered by concerns over Trump's threats to dismiss Fed Governor Lisa Cook, which could undermine confidence in USD assets [1] Gold and Mining Sector - Gold stocks surged, with China Gold International reporting a turnaround in its mid-year results, showing strong growth and significant capacity expansion potential [1] - Other gold stocks like Lingbao Gold and Zhaojin Mining also saw substantial gains, reflecting a broader trend in the sector [1] Trade and Tariff Implications - Trump threatened to impose approximately 200% tariffs on rare earth magnets from China and additional tariffs on countries implementing digital taxes, impacting major US tech companies [2] - The US government proposed adding copper, silicon, and silver to a list of critical minerals, indicating a shift in tariff strategy to protect domestic industries [2] Automotive Industry Dynamics - The automotive sector is undergoing rapid changes, with Chinese electric vehicle companies and Tesla significantly shortening the development cycle for new models to about two years [3] - Traditional players like Puma are exploring strategic options, including potential sales, indicating a shift in competitive dynamics within the industry [3] AI and Technology Sector - The Chinese government announced plans to integrate AI with six key sectors by 2027, which will drive capital expenditure towards AI-related technologies [6] - Companies like SMIC and SenseTime are positioned to benefit from increased investment in AI and related technologies [6] Company Performance Highlights - Angelalign reported a 33.1% increase in revenue to $161.4 million, with a significant rise in net profit, indicating strong performance in the orthodontics market [4] - Meituan was included in the MSCI China Index, leading to an 8% increase in its stock price [5] Individual Stock Insights - SenseTime is expected to report improved financial results, with projected revenue growth and a potential narrowing of losses, reflecting a positive outlook for the company [7] - The company has a strong competitive position in AI technology, with significant advancements in model capabilities and market share in various applications [8]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 91.10, up from a previous target of HKD 87.02 [5][4]. Core Views - The company's revenue for 1H25 reached USD 161 million, representing a year-on-year increase of 33.1%, while net profit surged by 583.6% to USD 14 million. Adjusted net profit also increased by 84.8% to USD 20 million, aligning with prior profit forecasts [1]. - The growth in profit is attributed to robust case growth in the domestic market and sustained high growth in overseas revenue. The delay in the investment in new overseas factories resulted in lower operational costs for 1H25, highlighting the potential for overseas business performance without additional factory investments [1]. - Looking ahead to 2H25, the company expects stable net profit figures due to ongoing case growth domestically and internationally, despite uncertainties in the domestic market and increased costs related to overseas supply chain development and patent improvements [1]. Domestic Business Summary - In 1H25, the domestic market generated USD 90 million in revenue, remaining stable compared to 1H24. The case volume grew by 14% year-on-year to approximately 95,300 cases [2]. - For the full year of 2025, the company anticipates domestic case volume to reach 250,000 cases, driven by the demand for children's orthodontics and product upgrades for adult patients [2]. Overseas Business Summary - The overseas market achieved USD 72 million in revenue for 1H25, marking a 123% year-on-year increase, with case volume rising by 103.5% to 117,200 cases [3]. - The company expects continued high growth in overseas case volume, potentially reaching 240,000 to 250,000 cases for the year, supported by improved product recognition and local sales support structures [3]. Profit Forecast and Valuation - The adjusted EPS forecast for 2025, 2026, and 2027 is USD 0.16, USD 0.16, and USD 0.21 respectively. The company is assigned a 73x PE for 2025, reflecting a premium over comparable companies due to its unique market position and growth potential [4][5]. - The target price of HKD 91.10 reflects the company's growth trajectory and market conditions, with a significant upside from the current closing price of HKD 68.10 [5].

Market Overview - The Hong Kong stock market failed to maintain its strong performance from the previous day, with all three major indices experiencing a collective adjustment. The Hang Seng Index fell by 1.18% or 304.99 points, closing at 25,524.92 points, with a total trading volume of HKD 31.78 billion. The Hang Seng China Enterprises Index decreased by 1.07% to 9,148.66 points, while the Hang Seng Tech Index dropped by 0.74% to 5,782.24 points [1] Blue-Chip Stocks Performance - CSPC Pharmaceutical Group (01093) led the decline among blue-chip stocks, falling by 4.33% to HKD 10.38, with a trading volume of HKD 1.797 billion, contributing a loss of 6.04 points to the Hang Seng Index. Bank of America Securities reported a 14.3% year-on-year decline in total revenue for CSPC in Q2, with attributable net profit down 24% to RMB 1.1 billion. The firm revised its revenue forecasts for 2025 to 2027 down by 25%, 2%, and 11% respectively [2] Sector Highlights - Large technology stocks mostly declined, with Alibaba down 2.57% and Tencent down 0.81%. Gold stocks surged, with China Gold International rising over 10%. Apple is expected to initiate a three-year innovation cycle, boosting related stocks like Lens Technology, which rose over 5%. Gaming stocks and some new consumption concepts performed well, with Melco International Development up over 9% [3][5] Federal Reserve Insights - Federal Reserve Chairman Jerome Powell indicated rising downside risks in the U.S. labor market, suggesting a potential policy adjustment could be appropriate. This statement is seen as a strong signal for a possible interest rate cut as early as September. The market reacted positively, particularly for precious metals, with expectations for further increases in gold prices [4] Gaming Sector Performance - The gaming sector continued its upward trend, with Melco International Development rising 9.27% to HKD 5.54. According to JPMorgan, Macau's gaming revenue for the first 24 days of August reached MOP 17.65 billion, with a daily average of MOP 735 million, reflecting a 9% increase from the previous week [6] Pharmaceutical Sector Challenges - The pharmaceutical sector faced pressure, with several stocks declining. Notably, CStone Pharmaceuticals (09966) fell 6.74% to HKD 10.24. U.S. President Trump's announcement to drastically reduce drug prices could create significant challenges for the global pharmaceutical industry, presenting both opportunities and risks for Chinese biotech stocks [6] Notable Stock Movements - Double Ended Co. (06960) debuted with a 31.29% increase, closing at HKD 19.05. The company focuses on energy storage solutions in the data and communication sectors, with a projected market share of 11.1% by 2024 [7] - Kingsoft Holdings (03918) reached a new high, rising 17.94% to HKD 5.72, reporting a 16.76% year-on-year revenue increase to USD 342 million [8] - Angelalign Technology (06699) saw a 10.28% increase to HKD 75.1, with a 33.1% year-on-year revenue growth reported [9] - Meitu Inc. (01357) rose 7.9% to HKD 11.47 after being included in the MSCI China Index, with Morgan Stanley expressing confidence in its long-term growth potential [10] - Xintai Medical (02291) experienced a significant drop of 12.75% to HKD 23.96 following a major shareholder's sale of shares [11]

Core Insights - Angelalign Technology Co., Ltd. reported a revenue of $161.4 million for the six months ending June 30, 2025, representing a 33.1% increase year-over-year [1] - The net profit reached $14.2 million, showing a significant growth of 583.6% compared to the same period last year [1] Revenue Breakdown - Revenue from the domestic market in mainland China was $89.7 million, a slight increase of 0.6% year-over-year [1] - Revenue from other global markets was $71.7 million, reflecting a substantial growth of 123.3% year-over-year [1] Operational Performance - The total number of completed invisible orthodontic cases during the reporting period was approximately 225,800, marking a year-over-year increase of 22.8% [1] - In mainland China, approximately 108,600 cases were completed, which is a 14.0% increase year-over-year [1] - In other global markets, around 117,200 cases were completed, showing a remarkable growth of 103.5% year-over-year [1] Profitability Metrics - The gross profit amounted to $100.6 million, a 32.9% increase year-over-year, with a gross margin maintained at 62.4%, consistent with the previous year [1] - The net profit margin improved significantly from 1.7% in the same period last year to 8.8% [1] Research and Development - The company increased its R&D expenditure to $12.8 million, a growth of 21.5% year-over-year [1] - These investments are primarily focused on developing new invisible orthodontic technologies and enhancing digital service capabilities [1]