Thank you for the write up! Any idea why the US dental lab has margins of 9% vs. the whole group's 17%? What are the challenges for those US margins to catch up the group's?
Sorry for the very late reply Andrew. I also don't have exact figures since like you say other players are not listed. I see it like this, MDG has no cost advantage on other low-cost country producers. For example I mentioned a center in India which seems to be at large scale, for sure they don't have a cost advantage on these guys. What they do have though is a advantage in terms of distribution to the western world. And what they might have is superior and more even quality of production, that is hard to say though.
If you instead look at local dental labs in different countries in Europe. There MDG has no distribution advantage, rather perhaps a small disadvantage as the local technician will work with dentist around the block so to say. What MDG in this case have is a big cost advantage instead.
Yes Korean Osstem was listed in the past and was a good company, they do dental implants, the titanium screw that goes into the bone. Unfortunately they got bought out.
In Hong Kong you also have clear aligner AngelAlign and dental clinics in Arrail which I mention briefly in the write up.
-Ray Co Ltd (KOSDAQ: 228670) is the only domestic total digital solutions company that drives true Digital Dentistry from dental diagnostics to treatment.
-Dio Corp (KOSDAQ: 039840) produces and sells dental implants in South Korea.
-Value Added Technology Co., Ltd. or Vatech (KRX: 043150) is a global dental X-ray imaging company.
-Dentium (KRX: 145720) is a dental medical device company that produces implant products.
-Vieworks (KRX: 100120) has developed imaging technologies for various areas and has offered solutions suitable for digital x-ray detectors, industrial cameras, and in vivo imaging systems.
-Q&M Dental (SGX: QC7) is a dental healthcare group with a network of 107 dental clinics in Singapore, 44 dental clinics in Malaysia and a dental supplies and equipment distribution business as of 31 December 2022.
So nice to see that you can focus on healthcare field, which is my favorite too. Thanks for sharing your insights!
Thank you for the write up! Any idea why the US dental lab has margins of 9% vs. the whole group's 17%? What are the challenges for those US margins to catch up the group's?
Thanks for sharing your research.
I am trying to figure out how much of a 'low cost' producer Modern Dental Group is. Do you have any numbers like prices vs competitors' prices?
What I find difficult is the fact I couldn't find similar listed companies to compare MDG against
Sorry for the very late reply Andrew. I also don't have exact figures since like you say other players are not listed. I see it like this, MDG has no cost advantage on other low-cost country producers. For example I mentioned a center in India which seems to be at large scale, for sure they don't have a cost advantage on these guys. What they do have though is a advantage in terms of distribution to the western world. And what they might have is superior and more even quality of production, that is hard to say though.
If you instead look at local dental labs in different countries in Europe. There MDG has no distribution advantage, rather perhaps a small disadvantage as the local technician will work with dentist around the block so to say. What MDG in this case have is a big cost advantage instead.
Interesting - I was only aware of a couple of Korean dental stocks who I think mostly do the equipment dentists used... I included your write-up in my Emerging Market Links + The Week Ahead (April 29, 2024) for today: https://emergingmarketskeptic.substack.com/p/emerging-markets-week-april-29-2024
Yes Korean Osstem was listed in the past and was a good company, they do dental implants, the titanium screw that goes into the bone. Unfortunately they got bought out.
In Hong Kong you also have clear aligner AngelAlign and dental clinics in Arrail which I mention briefly in the write up.
ALSO AND FROM OTHER POSTS OF MINE:
-Ray Co Ltd (KOSDAQ: 228670) is the only domestic total digital solutions company that drives true Digital Dentistry from dental diagnostics to treatment.
-Dio Corp (KOSDAQ: 039840) produces and sells dental implants in South Korea.
-Value Added Technology Co., Ltd. or Vatech (KRX: 043150) is a global dental X-ray imaging company.
-Dentium (KRX: 145720) is a dental medical device company that produces implant products.
-Vieworks (KRX: 100120) has developed imaging technologies for various areas and has offered solutions suitable for digital x-ray detectors, industrial cameras, and in vivo imaging systems.
-Q&M Dental (SGX: QC7) is a dental healthcare group with a network of 107 dental clinics in Singapore, 44 dental clinics in Malaysia and a dental supplies and equipment distribution business as of 31 December 2022.