SEHK:3600

Stock Analysis Report

Executive Summary

Modern Dental Group Limited, an investment holding company, produces and distributes dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Modern Dental Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3600 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

3600

1.1%

HK Medical Equipment

1.7%

HK Market


1 Year Return

-1.4%

3600

45.7%

HK Medical Equipment

-2.9%

HK Market

Return vs Industry: 3600 underperformed the Hong Kong Medical Equipment industry which returned 45.7% over the past year.

Return vs Market: 3600 exceeded the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

3600IndustryMarket
7 Day-3.4%1.1%1.7%
30 Day-6.7%1.0%-4.2%
90 Day-15.2%14.9%4.6%
1 Year1.9%-1.4%47.2%45.7%0.7%-2.9%
3 Year-56.7%-59.4%49.9%45.0%15.3%3.6%
5 Yearn/a52.0%43.8%15.9%-3.5%

Price Volatility Vs. Market

How volatile is Modern Dental Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Modern Dental Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3600 (HK$1.4) is trading below our estimate of fair value (HK$3.18)

Significantly Below Fair Value: 3600 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3600 is good value based on its PE Ratio (13x) compared to the Medical Equipment industry average (18.5x).

PE vs Market: 3600 is poor value based on its PE Ratio (13x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3600's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3600 is good value based on its PB Ratio (0.7x) compared to the HK Medical Equipment industry average (2.6x).


Next Steps

Future Growth

How is Modern Dental Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.2%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Modern Dental Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Modern Dental Group performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3600 has high quality earnings.

Growing Profit Margin: 3600's current net profit margins (4.6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: 3600's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: 3600's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3600 had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Medical Equipment industry average (43.4%).


Return on Equity

High ROE: 3600's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Modern Dental Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3600's short term assets (HK$976.9M) exceed its short term liabilities (HK$439.1M).

Long Term Liabilities: 3600's short term assets (HK$976.9M) exceed its long term liabilities (HK$869.1M).


Debt to Equity History and Analysis

Debt Level: 3600's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: 3600's debt to equity ratio has reduced from 110.9% to 39.6% over the past 5 years.

Debt Coverage: 3600's debt is well covered by operating cash flow (33.6%).

Interest Coverage: 3600's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: 3600 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3600's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Modern Dental Group's current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.3%markettop25%6.3%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3600's dividend (3.21%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 3600's dividend (3.21%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 3600 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3600's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), 3600's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Godfrey Ngai (71yo)

HK$4,214,000

Compensation

Mr. Shing Kin Ngai, also known as Godfrey, serves as the Chief Executive Officer at Modern Dental Group Limited and has been its Executive Director since July 05, 2012. Mr. Ngai is primarily responsible fo ...


CEO Compensation Analysis

Compensation vs Market: Godfrey's total compensation ($USD542.55K) is above average for companies of similar size in the Hong Kong market ($USD284.67K).

Compensation vs Earnings: Godfrey's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kwun Chan
Executive Chairman4.7yrsHK$2.12m0.048% HK$652.4k
Shing Ngai
CEO & Executive Director0yrsHK$4.21m10.19% HK$137.3m
Chi Ngai
COO & Executive Director5.4yrsHK$2.47m6.56% HK$88.4m
Yik Chan
Chief Marketing Officer & Executive Director5.4yrsHK$1.37mno data
Chi Chan
Executive Director5.4yrsHK$1.37mno data
Yik Chan
Executive Director5.3yrsHK$1.37mno data
Ngai Kit Kwan
Chief Financial Officer and Company Secretary3.3yrsno datano data
August Wilhelm Schwafert
Chief Executive Officer of Modern Dental Europe BV0yrsno datano data
Gregory Scialom
President of Labocast SAS8.5yrsno datano data
James Squirrell
Chief Executive Officer of Modern Dental Pacific1.9yrsno datano data

5.2yrs

Average Tenure

43yo

Average Age

Experienced Management: 3600's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwun Chan
Executive Chairman4.7yrsHK$2.12m0.048% HK$652.4k
Shing Ngai
CEO & Executive Director0yrsHK$4.21m10.19% HK$137.3m
Chi Ngai
COO & Executive Director5.4yrsHK$2.47m6.56% HK$88.4m
Yik Chan
Chief Marketing Officer & Executive Director5.4yrsHK$1.37mno data
Chi Chan
Executive Director5.4yrsHK$1.37mno data
Yik Chan
Executive Director5.3yrsHK$1.37mno data
Yue Kwong Chan
Independent Non-Executive Director4.3yrsHK$245.00kno data
Wai Bun Cheung
Independent Non-Executive Director4.3yrsHK$245.00kno data
Ho Wong
Independent Non-Executive Director4.3yrsHK$245.00kno data
Kwun Chan
Executive Vice Chairman4.7yrsHK$2.12m0.36% HK$4.8m

5.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 3600's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Modern Dental Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Modern Dental Group Limited
  • Ticker: 3600
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: HK$1.347b
  • Shares outstanding: 962.48m
  • Website: https://www.moderndentalgp.com

Number of Employees


Location

  • Modern Dental Group Limited
  • CEO Tower
  • 17th Floor, Units 1708-16
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3600SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2015
1MDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2015

Biography

Modern Dental Group Limited, an investment holding company, produces and distributes dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally. It operates through three segments: Fixed Prosthetic Devices, Removable Prosthetic Devices, and Others. The Fixed Prosthetic Devices segment offers metal-ceramic crowns and bridges, metal crowns and bridges, metal-free crowns and bridges, and custom implant abutments devices. The Removable Prosthetic Devices segment provides removable dentures. The Others segment offers orthodontic devices, sports guards, anti-snoring devices, raw materials, and dental equipment, as well as Invisalign. This segment also provides services for educational events and seminars. The company sells its products to dentists, dental clinics, hospitals, distributors, and other customers under the Permadental & Semperdent, Elysee, Labocast, Modern Dental Laboratory, Yangzhijing, Southern Cross Dental, Andent, Gold & Ceramics, Precision Dental, Modern Dental USA, MicroDental, Sundance Dental, Quantum Dental, Labo Ocean Indien, and Digitek Dental brands. Modern Dental Group Limited was founded in 1986 and is based in Kowloon, Hong Kong. Modern Dental Group Limited is a subsidiary of Triera Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:10
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.