CISI FIN released a research report recommending attention to ANGELALIGN (06699). In the first half of 2025, the company flexibly responded to market conditions through strategic price adjustments, early orthodontic treatment, and deeper penetration in tier-lower markets, achieving significant growth in case numbers while maintaining its leading position. Meanwhile, the company made impressive progress in global expansion, with case numbers and revenue contributions exceeding expectations. Its overseas influence continues to strengthen, and global supply chain and service capabilities are being continuously built. In the first half, overseas operations showed good profit performance, demonstrating improving operational profitability trends and potential. The company is expected to gradually enter a harvest period, contributing stable performance returns.

CISI FIN's main views are as follows:

Rapid overseas business development and quality improvement in domestic operations in H1 2025

H1 2025 achieved revenue of $161 million, up 33.1% year-on-year, with a gross margin of 62.4% and adjusted net profit of approximately $20 million, up 84.8% year-on-year. By market: 1) Global markets outside China generated revenue of approximately $72 million, up 123.4% year-on-year, accounting for 44.4% of total revenue. 2) China market generated revenue of $90 million, up 0.7% year-on-year, accounting for 55.6% of total revenue. Operating profit was approximately $17 million, up 52.1% year-on-year, with an operating margin of 19.2%, up 6.5 percentage points year-on-year, mainly due to reduced operating expense allocation from revenue scale growth and cost reduction measures.

Overseas case numbers continue to exceed expectations, domestic market trades price for volume

In the first half of 2025, total case numbers reached 225,800, up 47.7% year-on-year, including: 1) Global markets outside mainland China achieved 117,200 cases, up 103.5% year-on-year, accounting for 51.9% of total cases. 2) Mainland China market achieved approximately 108,600 cases, up 14.0% year-on-year, mainly due to strategic price adjustments in response to intense competition. The company continued to strengthen its presence in early orthodontic treatment and tier-lower markets. Domestic revenue growth lagged behind case number growth mainly due to declining average selling prices.

Deepening global expansion with integrated advantages of global manufacturing and localized services

The company expanded market coverage outside mainland China through high-quality medical design support, stable delivery, continuous education and training led by key opinion leaders, and customized aligners for simple cases for important strategic clients. The company strengthened its global supply chain and plans to establish or expand manufacturing and design facilities in key global locations, such as medical design centers in Brazil and Southeast Asia providing medical design services to the United States. The company also invested significant resources in upgrading data security facilities and operational processes to ensure compliance with data security and privacy regulations in all major countries and regions where it operates.