Stock Track | Angelalign Soars on Strong Revenue Growth Despite Profit Dip

Stock Track08-23

Shares of Angelalign Technology, a leading manufacturer of orthodontic aligners, skyrocketed by 19.5% on Thursday, August 23, as investors cheered the company's robust revenue growth in the first half of 2024, despite a decline in profits.

In its interim results filed with the Hong Kong Stock Exchange, Angelalign reported a 40% year-over-year increase in revenue to 861.5 million yuan ($121.3 million), surpassing analysts' expectations of 754.3 million yuan. However, the company's attributable profit fell to 22.5 million yuan from 32.3 million yuan in the same period last year, missing analyst estimates of 0.34 yuan per share.

While the decline in profitability may have been a concern, investors appear to have focused on the strong top-line performance, betting that Angelalign's revenue momentum will translate into improved bottom-line results in the second half of the year. Analysts suggest that the stock surge could also be fueled by speculation about a potential recovery in the company's profit margins.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment