Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected price increase of 5% to 15% over the next 6 to 12 months [2][6]. Core Views - The company reported a revenue of 862 million yuan for the first half of 2024, representing a year-on-year growth of 40%, while net profit decreased by 50% to 15 million yuan. Adjusted net profit increased by 95.8% to 72 million yuan [2]. - The global business is entering a harvest phase, with a significant increase in international market cases and revenue, while domestic operations focus on high-quality growth strategies [2][3]. - The company has optimized its product structure, leading to an increase in gross margin, and has made significant advancements in research and development [2]. Financial Performance Summary - For 2024H1, the total number of cases reached 152,900, a year-on-year increase of 60.3%, with international cases growing by 512.8% to 57,600 [2]. - Revenue from the international market reached 230 million yuan, a year-on-year increase of 452.5%, contributing significantly to overall growth [2]. - In the domestic market, the company achieved 95,300 cases, a 10.8% increase, with revenue of 633 million yuan, reflecting a 10.1% growth [2]. - The adjusted profit margin for domestic operations was 17.7%, benefiting from the rapid growth in international market revenue [2]. - The gross margin for 2024H1 was 62.4%, an increase of 3.1 percentage points year-on-year [2]. Earnings Forecast and Valuation - The forecast for net profit for 2024 and 2025 has been adjusted to 74 million yuan and 161 million yuan, representing year-on-year growth of 38% and 118%, respectively. The expected net profit for 2026 is 273 million yuan, a 70% increase [3]. - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.19 yuan, 1.73 yuan, and 2.66 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 121, 55, and 33 times [3].

Financial Performance - The total number of cases achieved increased by 60.3% from approximately 95,400 cases for the six months ended June 30, 2023, to approximately 152,900 cases for the six months ended June 30, 2024[3]. - Revenue for the six months ended June 30, 2024, was approximately RMB 861.5 million, representing a 39.8% increase from approximately RMB 616.3 million for the six months ended June 30, 2023[3]. - The gross profit for the six months ended June 30, 2024, was approximately RMB 537.9 million, an increase of 47.1% from approximately RMB 365.7 million for the six months ended June 30, 2023[4]. - The adjusted net profit for the six months ended June 30, 2024, was approximately RMB 71.7 million, a 95.8% increase from approximately RMB 36.6 million for the six months ended June 30, 2023[4]. - The gross margin for the six months ended June 30, 2024, was approximately 62.4%, an increase of 3.1 percentage points from approximately 59.3% for the six months ended June 30, 2023[4]. - Revenue increased by 39.8% from RMB 616.3 million for the six months ended June 30, 2023, to RMB 861.5 million for the six months ending June 30, 2024[18]. - Revenue from invisible orthodontic solutions rose by 8.5% from RMB 553.2 million to RMB 600.1 million, driven by an increase in cases in the Chinese market[21]. - Revenue from product sales surged by 363.1% from RMB 54.5 million to RMB 252.4 million, attributed to strong growth in international business[21]. - The company reported a net profit of RMB 14.73 million for the six months ended June 30, 2024, down from RMB 29.30 million in 2023[55]. - The company reported a total comprehensive income of RMB 12.33 million for the six months ended June 30, 2024, compared to RMB 130.29 million in 2023[56]. Market Expansion - The number of cases achieved in the international market surged by 512.8% to approximately 57,600 cases, accounting for about 37.7% of the total cases achieved during the reporting period[3]. - The company has successfully reached thousands of dental professionals across over 50 countries and regions as of June 30, 2024, compared to over 30 countries and regions as of December 31, 2023[3]. - The company expanded its market presence in North America and Asia-Pacific, leveraging local teams and regional distributors to cover countries like Malaysia and Thailand[9]. - The company is preparing for the official launch of the "Era Angel" product series in Brazil, utilizing the "Self" brand to meet diverse local market needs[9]. Research and Development - The company invested RMB 74.9 million in R&D in the first half of 2024, accounting for 8.7% of total revenue, and registered 193 patents and 16 software copyrights by June 30, 2024[15]. - The company continues to innovate in digital orthodontics, enhancing its "iOrtho" platform with new tools for diagnosis, treatment planning, and progress monitoring[14]. - The company presented research at international conferences, focusing on advancements in federated learning and deep learning applications in orthodontics[15]. - The company aims to enhance R&D capabilities and continue innovating invisible orthodontic solutions as part of its growth strategy[17]. Operational Efficiency - The adjusted operating profit in the Chinese market increased by 67.1% to RMB 112.2 million, with an adjusted operating profit margin of approximately 17.7%, up 6 percentage points from approximately 11.7%[4]. - The company is focused on increasing production capacity and improving operational efficiency through digitalization and automation[17]. - The company has two provincial-level smart factories recognized for their capabilities in intelligent manufacturing[16]. Expenses and Financial Management - Sales and marketing expenses rose by 68.1% from RMB 204.1 million to RMB 343.1 million, primarily due to increased marketing expenditures related to business expansion[25]. - Administrative expenses increased by 30.9% from RMB 120.7 million for the six months ended June 30, 2023, to RMB 157.9 million for the six months ended June 30, 2024[26]. - Other income surged to RMB 51.4 million for the six months ended June 30, 2024, compared to RMB 5.2 million for the same period in 2023, primarily due to increased interest from term deposits[29]. - The company reported a segment operating loss of RMB 38,048,000 for the six months ended June 30, 2024, compared to a loss of RMB 45,140,000 for the same period in 2023[85]. Cash Flow and Liquidity - Cash and cash equivalents and term deposits increased from RMB 2,689.5 million as of December 31, 2023, to RMB 2,810.3 million as of June 30, 2024[38]. - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (129,202) thousand, compared to RMB (93,027) thousand for the same period in 2023, indicating a significant increase in cash outflow[61]. - The net cash generated from financing activities for the six months ended June 30, 2024, was RMB 288,512 thousand, contrasting with a net cash outflow of RMB (26,797) thousand in the same period of 2023, indicating improved financing conditions[61]. - The company's cash and cash equivalents as of June 30, 2024, were RMB 949,215 thousand, down from RMB 2,689,541 thousand at the end of 2023, reflecting a significant decline of about 64.7%[115]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2024[4]. - A special final dividend of HKD 1.1 per share was proposed, amounting to approximately RMB 169,889,000, approved by shareholders on June 28, 2024, and to be paid on July 29, 2024[119]. - The company has maintained compliance with the minimum public float requirements as per the listing rules[148]. - The company has adopted the corporate governance code and complied with all applicable code provisions during the reporting period[149]. Employee and Management Compensation - Employee benefits expenses rose significantly to RMB 464,371,000, up 42.0% from RMB 327,216,000 year-over-year[7]. - Key management compensation totaled RMB 28,967 thousand for the six months ended June 30, 2024, significantly higher than RMB 11,947 thousand for the same period in 2023, marking an increase of about 142.5%[140]. - The company provided loans to key management amounting to RMB 456 thousand in interest for the six months ended June 30, 2024, while no loans were provided in the same period of 2023[141]. Risks and Challenges - The company acknowledges potential challenges from global economic uncertainties and geopolitical conflicts that may impact orthodontic treatment case numbers[17]. - The financial risk factors include market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since December 31, 2023[68].

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].

[Table_Main] 证券研究报告 | 公司首次覆盖 时代天使(06699.HK) 2024年06月21日 时代天使：隐形正畸龙头，从中 买入（首次） 所属行业：医疗保健业/医疗保健设备和 国走向全球 服务 当前价格(港币)：60.00元 副标题：楷体四号，非必填 投资要点 证券分析师 易丁依 导语：全球错颌畸形患病率高+隐形正畸更优替代，预期市场高增长潜力；时代  资格编号：S0120523070004 天使深耕中国市场，凭借产品优势+优质服务+大量案例积累正向循环，国内绑定 邮箱：yidy＠tebon.com.cn 医生深化下沉市场；海外以产品性价比+医生服务+及时交付，有望抢占市场份 额，预估海外市场高成长潜力，首次覆盖给予买入评级。 市场表现  隐形正畸市场概况：需求高然供给寡，全球隐适美一家独大，中国双寡头竞争。 据灼识咨询数据，中国 2023 年隐形矫治规模为 130 亿元，有望以 14.7%CAGR 时代天使 恒生指数 增至 2030 年的 340 亿元：1）需求端：中国各年龄段平均错颌畸形患病率超 11% 70%、消费者审美意识提升+儿童早矫理念提升+消费意愿增强+隐形正畸较传统正 0 ...

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 ...

港股公司报告 | 公司点评 时代天使（06699） 证券研究报告 2024年05月 17日 投资评级 达成案例数快速增长，国际化业务快速推进 行业 医疗保健业/医疗保健 设备和服务 事件： 6个月评级 买入（维持评级） 当前价格 75.45港元 2024年3月19日，公司发布2023年报，2023年实现营业收入14.76亿元， 目标价格 港元 同比增长16.24%；实现归母净利润5347.50万元，同比下降74.99%；实现 经调整净利润1.79亿元，同比下降16.00%；实现扣非归母净利润3916.00 万元，同比下降79.05%。 基本数据 港股总股本(百万股) 169.22 点评： 港股总市值(百万港元) 12,767.72 达成案例数快速增长，同比增长超30% 每股净资产(港元) 21.81 2023年，公司实现营业收入14.76亿元，同比增长16.24%，其中隐形矫治 资产负债率(%) 28.36 解决方案实现销售收入12.82亿元，同比增长5.99%，达成案例数24.50万 一 年内最高/最低(港元) 91.25/43.70 例，同比增长33.22%。中国内地市场实现营业收入13.31亿元，同比增 ...

（於開曼群島註冊成立之有限公司） 股份代號：6699 2023 年度報告 2023 年度報告 | --- | --- | --- | --- | --- | --- | |-------|------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 目錄 | | | | | | | 2 | 公司資料 | | | | | | 4 | 主席及首席執行官致辭 | | | | | | 8 | 業績概要 | | | | | | | | | | | | | 12 | 非國際財務報告準則計量 | | | | | | 14 | 管理層討論與分析 | | | | | | 27 | 董事及高級管理層 | | | | | | 32 | 董事會報告 | | | | | | 66 | 企業管治報告 | | | | | | 86 | 釋義 | | | | | | 89 | 獨立核數師報告 | | | | | | 94 | 綜合全面收益表 | | | | | | 96 | ...

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 ...