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Modern Dental Group Acquired the Top 1 Dental Laboratory in Thailand Solidified its Leading Position in the Global Market
(Hong Kong, 21 November 2024) – Modern Dental Group Limited (the "Modern Dental Group" or the "Group", Stock Code: 03600.HK), a leading global dental prosthetics provider, is pleased to announce the acquisition (“the acquisition") of 74% shares in Hexa Ceram Dental Laboratory (“Hexa Ceram") - the largest dental laboratory in terms of market share in Thailand. The acquisition builds on the Group's strategy in expanding distribution networks and penetration into new geographic markets and utilizing Hexa Ceram as a production base for Southeast Asia, which helps reinforce the Group’s global leadership in the ever-evolving dental industry.Expansion of Market Reach in the Global Distribution NetworkHexa Ceram Dental Laboratory is the largest dental laboratory in Thailand, with a substantial market share of 28% during the year of 2022. It has been the pioneer in the industry for nearly 30 years and is dedicated to providing high-quality dental prosthetics to dentists, with a team of over 900 qualified dental technicians and the biggest sales team in 12 branches over Thailand. Hexa Ceram has demonstrated a solid performance which realized its net sales growth with a CAGR of 23% over the financial years 2020 to 2023; and the profitability with an EBITDA margin of 21% and a net profit margin of 18% in 2023. Upon the acquisition, the Group has significantly increased market share and strengthened its market position in Southeast Asian countries.The Group will fully leverage Hexa Ceram’s strong market position and close connection with dental universities in Thailand to expand its local market reach. By utilizing the established skilled workforce in the laboratory, the Group will further enhance production flexibility, diversify the risk of concentration of production centers and enhance its overall production efficiency. By utilizing Hexa Ceram as a production base for the Southeast Asia market, the acquisition sets a significant milestone in the business journey of the Group, providing it with the resources and customer base necessary to enhance its product offerings and expand the market reach.Unleashing the Full Potential to Develop in the Emerging MarketsSoutheast Asia is a dynamic and rapidly evolving region with rising demand for dental services which is significantly influenced by increasing awareness of dental health, rising disposable income and expanding middle class in Southeast Asian countries. Thailand is well-established as a medical tourism hub and the robust healthcare infrastructure, provides unparalleled advantages and cultural diversity to serve as a convenient access point for neighboring countries.The acquisition underscores Modern Dental Group's commitment and determination to develop in the emerging markets and allows streamlined expansion of customer base and brand presence in Southeast Asia. The Group aims to unleash the full potential of its competitiveness to provide high-quality dental services at competitive prices. Upon the completion of the acquisition, the Group is positioned to enhance its coverage and penetration in the surrounding markets and provide high-quality and innovative dental solutions and services, given the established and growing presence in ASEAN Economic Community including Laos, Cambodia and Myanmar by Hexa Ceram. The Group is poised to unlock substantial growth opportunities and deliver even greater value to its customers. Strategic M&A Strengthened the Group’s Competitive EdgeSince 2011, the Group has tactically expanded its global sales and distribution network across Europe, North America and Asia Pacific through a series of strategic acquisitions. Currently, Modern Dental Group has established a global sales network covering more than 23 countries. The Group’s expansive global presence allows the Group to deliver cutting-edge innovation and solutions to dentists around the world. It is believed that the streamlined operations and integrated supply chain through the acquisition will lead to improved efficiencies in sales and distribution, empower the Group a wider customer demographic to better meet the global demand and enhance its resilience to uncertainty in the macro environment.Future ProspectThe management of Modern Dental Group stated, "We are delighted to welcome the team from Hexa Ceram. The combined extensive experience and network from Hexa Ceram enables us to be a more competitive, growth-oriented dental solutions provider in the evolving industry. We are well-positioned to deliver greater value for dentists and partners, as well as providing compelling alternatives in the new era of technological innovation to meet customers’ needs that exceed their expectations."The acquisition is an important step in the Group’ global expansion strategy. It has not only strengthened its presence over core markets in Southeast Asia but also enhanced the stability of its global supply chain and distribution network. Going forward, customers will benefit from a more competitive portfolio of solutions supported by the Group’s multifaceted dental ecosystem. The Group will continue to integrate global resources and technology to offer superior dental products and services, reinforcing the leading position in the global market.About Modern Dental GroupModern Dental Group Limited (Stock code: 03600.HK) is a leading global dental prosthetics provider, distributor and consultant with a focus on providing custom-made prostheses to customers in the growing prosthetics industry. Our product portfolio is broadly categorized into three product lines: fixed prosthetic devices, such as crowns and bridges; removable prosthetic devices, such as removable dentures; and other devices, such as orthodontic devices, sports guards, clear aligners, and anti-snoring devices.Modern Dental Group has a global portfolio of respected brands, including Labocast, Permadental and Elysee Dental in Western Europe, YZJ Dental in China, Modern Dental Lab in Hong Kong, Modern Dental USA in the United States, and Southern Cross Dental in Australia. We have grown these brands by providing premium and consistent quality products and superior customer service. We have more than 80 service centers in over 23 countries and serve over 30,000 customers.22/11/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Nov 22, 2024
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