China Merchants Securities (CMSC) has released a research report indicating that the dental medical services sector will exhibit significant structural divergence in 2025. The recovery in orthodontics is the most clear-cut, while implant procedures continue to follow a "volume over price" strategy. In the consumer medical field, companies are actively expanding into overseas markets, with notable success seen particularly in the clear aligner and Continuous Glucose Monitoring (CGM) sectors.
The brokerage observed that Angelalign’s case numbers both domestically and internationally for the first half of the year significantly exceeded expectations. In the first half of 2026, the total number of clear aligner cases reached approximately 316,600 (a year-on-year increase of 40.2%), generating revenue of USD 229 million to USD 231 million (a year-on-year increase of 41.9% to 43.1%). It recommends focusing on consumer medical companies that are expanding overseas.
Structural Divergence in Dental Services with Orthodontics Leading the Recovery
In the dental medical services field, the orthodontics business is experiencing a restorative growth spurt, driven by the improvement-oriented nature of the services. The structural divergence within the dental medical services sector in 2025 is expected to be pronounced. Orthodontics shows the most definitive recovery, implant procedures persist with a "volume over price" approach, pediatrics is weaker due to consumer spending impacts, while restoration and general dentistry demonstrate the resilience of essential demand.
Clear Aligners and CGM Show High Potential in Overseas Markets
The consumer medical sector's sentiment is significantly influenced by domestic consumption. As companies actively explore overseas markets, CMSC observed that firms in the consumer medical space, particularly those focused on clear aligners and CGM, have achieved remarkable results in their overseas expansion efforts in 2025. The brokerage believes that the penetration rate of the clear aligner industry in China is steadily increasing. The industry is also expanding from first and second-tier cities to third and fourth-tier cities. Furthermore, the demand for orthodontic treatment among adolescents shows stronger resilience compared to adults. Globally, Invisalign holds a large market share, leaving significant potential for Chinese companies to expand overseas. Currently, the domestic Blood Glucose Monitoring (BGM) market is in a phase of replacement, while the penetration rate for CGM in China has substantial room for growth. The global market is dominated by the duopoly of Abbott and Dexcom. Chinese companies are gradually expanding into this vast overseas market.
Angelalign is recommended for its strong domestic leadership and its dual-driver strategy of domestic demand and overseas expansion. Other recommended companies in the consumer medical export field include Yuyue Medical, Canwell Medical, and Sinocare.
Angelalign’s Strong Market Position Driven by Domestic and International Demand
Angelalign maintains a solid leadership position in the domestic clear aligner industry, driven by a dual-engine strategy of domestic demand and overseas business, while building a global supply chain system. Domestically, the competitive landscape in the clear aligner industry is gradually improving. In 2025, the company achieved 270,000 cases in China, a 26% year-on-year increase. This growth is attributed to an increasing market share in third and fourth-tier cities, growth in the children's early orthodontic business, and product mix optimization. Internationally, since the company began its global expansion, the number of overseas cases has grown rapidly. In 2022, it officially launched its global business and acquired a 51% stake in Aditek in Brazil. In 2025, the company achieved 250,000 overseas cases, an 82% year-on-year increase. Overseas revenue now accounts for 44% of total revenue, with an adjusted segment loss of USD 10.54 million, a significant reduction. The company expects this loss to narrow further in the second half of the year as overseas case numbers increase. Its operations cover regions including Europe, North America, Asia-Pacific, and Brazil, and its international market share is expected to gradually increase. The company is also committed to building a global supply chain, establishing medical design centers in Brazil and Southeast Asia, expanding its production center in Brazil to produce Angelalign-branded products, and is constructing a production center in the United States.
Angelalign’s case numbers in the first half of the year significantly exceeded expectations. In the first half of 2026, the total number of clear aligner cases was approximately 316,600 (a 40.2% year-on-year increase). This includes 168,000 overseas cases (+43.3%) and 148,600 domestic cases (+36.8%). Revenue reached USD 229 million to USD 231 million (+41.9% to 43.1%), with a net profit of USD 24 million to USD 25.4 million (+69.0% to 78.9%). The reasons for the case numbers exceeding expectations include: 1) The company's early heavy investment in an international direct sales and clinical service network is beginning to yield operating leverage; 2) Increased recognition of the company's products in the domestic lower-tier market and the children's and young adults' market.
Risk Factors
Risks include consumer demand falling short of expectations, intensifying competition in the industry, and capacity construction not meeting targets.
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