Huge Dental Ltd., a prominent maker of dental products and materials, is making a bold move to list its shares in Hong Kong, abandoning its previous attempts to list on China’s A-share markets after years of setbacks. The company, which generates 70% of its revenue from China, is aiming to leverage the Hong Kong Stock Exchange to expand its global presence, particularly through a planned new production facility in Indonesia.
Huge Dental’s journey toward a major stock market listing has been rocky. Originally listed on the National Equities Exchange and Quotations (NEEQ) board in Beijing in 2015, it was delisted two years later due to poor trading volumes. The company then attempted to join the ChiNext board in Shenzhen in 2017, but its application was withdrawn two years later. Another attempt in 2019 to list on Shanghai’s STAR market also failed. However, with the Hong Kong stock market historically more receptive to consumer-oriented businesses, Huge Dental now sees this as its best chance for success.
Founded in 2006 by Song Xin, Huge Dental operates in three main business segments: dental clinical products, dental laboratory products, and dental digital products. Its primary focus is on clinical and laboratory materials, which together contribute nearly 97% of its revenue. Notably, the company is China’s leading manufacturer of elastomeric impression materials and synthetic resin teeth, holding a significant share in a rapidly growing market driven by the increasing demand for dental products from the Chinese middle class.
In 2023, Huge Dental’s revenue rose by 28% to 358 million yuan, with a 38% increase in net profit. Despite slowing growth in 2024, its gross margin improved from 54.9% in 2022 to 59.2% in the first nine months of 2024. The company’s international reach spans over 60 countries, with nearly 70% of its revenue still derived from the domestic Chinese market. To fuel further expansion, Huge Dental plans to use the proceeds from its Hong Kong IPO to establish a new factory in Indonesia, a key step in its strategy to diversify its manufacturing base and tap into global markets.
The dental industry’s outlook remains promising, with the global market for dental medical supplies valued at $37.8 billion in 2019 and expected to nearly double by 2030. In China, the dental market grew from 43.4 billion yuan in 2019 to 60.7 billion yuan in 2023, with projections showing a 15.5% annual growth rate until 2030. Huge Dental stands to benefit from government initiatives like the “Healthy China 2030” plan, which promotes oral health and supports the development of domestic dental products. The company is positioned to take advantage of the increasing shift toward locally made dental materials, offering products that are 30-50% cheaper than imports.
However, Huge Dental faces intense competition in both domestic and international markets, including from established global brands and rising local players. To stand out, Huge Dental plans to focus on innovation in digital dental products, a growing segment of its business. Though this area currently accounts for only 0.8% of revenue, Huge Dental aims to ramp up development of intraoral scanners, 3D printers, and AI-driven diagnostic tools, which could differentiate it from competitors and drive future growth.
In terms of valuation, Huge Dental’s IPO could present an attractive opportunity for investors, especially if it positions itself as a “high-quality domestic substitute” in the dental market. A lower price-to-earnings (P/E) ratio, compared to the inflated P/E ratio of competitor Angelalign, may help the company attract investors, but maintaining long-term appeal will depend on its ability to demonstrate consistent growth and product innovation.
With the right strategy, Huge Dental could become a strong player in the global dental industry, balancing its domestic market strength with international expansion, supported by a focus on digital innovation.
Related topics:
Egyptian Medical Convoy Delivers Essential Dental Care to 154 Palestinian Patients in North Sinai
Jiahui Health Offers Up to 50% Off on Dental Care Packages
Regional Partnership Provides Free Dental Care and Fosters Healthy Habits for Young Children
