ANGELALIGN (06699): Dual-wheel drive, scale effect, share leap, the triple growth logic reshapes the global orthodontics landscape.

On August 31, ANGELALIGN (06699) delivered a mid-term report that exceeded market expectations, showcasing strong business outcomes and financial indicators, marking a substantial breakthrough in the company's fundamentals. The financial report indicated that the company achieved a total of 316,609 cases in the first half of the year, a year-on-year increase of 40.2%, with revenue reaching $231 million, up 42.9% year-on-year. It is believed that the biggest highlight of ANGELALIGN's mid-term report lies in the leap in profitability quality and the realization of growth logic. On one hand, the company turned profitable in its overseas business, as its previously asset-heavy and investment-intensive global direct sales network began to release "operational leverage effects"; on the other hand, in the domestic market, with deepening penetration in lower-tier markets and leadership in early orthodontic care for children, the company is further expanding its market share through a "clinical efficacy-oriented" strategy. Looking ahead, as the global invisible orthodontics market progresses toward a hundred billion dollar scale, ANGELALIGN is accelerating its transition from being a "domestic leader" to a "global core competitor" with its balanced structure driven by dual engines of domestic and overseas markets. With robust growth in overseas business and a strong increase in domestic market share, the markets valuation logic for ANGELALIGN is expected to evolve from being simply a "growth stock" to one classified as a "value growth stock with global pricing power." The tide of economies of scale rises: The second growth curve of globalization strongly materializes As mentioned at the beginning, the core highlight of ANGELALIGN's 2026 mid-term report lies in realizing profitability in its global business, marking a substantial performance realization. The financial report shows that in the first half of the year, the total number of invisible orthodontic cases in global markets (excluding mainland China) reached 168,000, a year-on-year increase of 43.4%, with both case numbers and revenue contributions surpassing the 50% mark. More importantly, the overseas division has turned around past losses, marking the successful establishment of a "self-sustaining" business loop in overseas markets, officially transitioning from the expansion phase to the harvest phase. It is believed that the reversal in profitability of the overseas business is essentially the inevitable result of accelerated release of operational leverage driven by economies of scale and deep localization. On one hand, the company maintains a very high net promoter score from customers in overseas markets due to its superior sales service, treatment plan design, and clinical technical support. This reputation based on real clinical efficacy effectively reduces marginal customer acquisition costs and has become the core drive for continuous case volume increases. On the other hand, in response to the many unmet invisible orthodontic needs globally, the company continues to advance local team development and has hosted professional academic conferences such as iMaster and Angel Ascend in key markets like Europe, Asia-Pacific, North America, and Latin America, enhancing physicians recognition of ANGELALIGN solutions and establishing a virtuous growth cycle led by professional academia globally. This achievement is closely tied to the global coordination of R&D and back-office operations. Through an open collaborative management culture, ANGELALIGN has successfully integrated top global clinical knowledge and technical talent, achieving global collaboration in R&D resources that not only enhances the efficiency and predictability of complex case solutions but also allows clinical experiences across different countries and regions to inform one another, driving the improvement of products, technologies, and solutions. Crucially, this clinical hard skill capability is forming an increasing number of professional consensus worldwide. In the invisible orthodontics industry, which exhibits strong compounding effects, the real barrier lies in gaining clinical recognition from local leading orthodontics experts. Currently, ANGELALIGN's products and solutions have been rigorously peer-reviewed by authoritative academic journals in key markets like North America and Europe, and have been validated in real clinical practices involving numerous complex cases. As the global direct sales network continues to deepen and scale effects are consistently amplified, overseas business not only becomes the core engine driving the company's overall revenue growth but also contributes substantial revenue increments to the group. Looking ahead, with the continued recovery of overseas profit margins, this high-growth globalization second curve will provide a continuous strong impetus for the company's long-term value uplift. China's market share continues to rise: Medical services deepen to activate new growth momentum While global business accelerates realization, ANGELALIGN also demonstrates strong resilience in the mainland Chinese market, steadily increasing its market share and further expanding its domestic leading advantage. In the first half of 2026, the number of invisible orthodontic cases in mainland China reached 148,608, a year-on-year increase of 36.8%. Against a backdrop where the invisible orthodontics industry increasingly emphasizes clinical value, this growth stems not only from continued efforts in existing advantageous markets but also from the companys ongoing expansion of medical service capabilities into broader regions, pushing deeper penetration into lower-tier markets. It is believed that ANGELALIGN's growth in lower-tier markets does not rely simply on channel expansion, but is founded on the continuous dissemination of professional reputation and clinical service capabilities. After years of clinical practice in invisible orthodontics, physicians in lower-tier markets have increasingly improved their recognition of product quality, clinical efficacy, and professional support, and are more attentive to whether treatment plans can remain stable and effective. Throughout this process, ANGELALIGN has gradually established its reputation based on its long-accumulated product quality, clinical outcomes, and service capabilities, thereby translating its professional advantages into a larger selection for more physicians as its business coverage and market reach expand. During the reporting period, the proportion of cases from lower-tier markets continued to rise, directly reflecting this logic. More critically, ANGELALIGN is converting its medical capabilities into a service system that can be replicated in broader markets. The company continues to help physicians deepen their understanding of invisible orthodontic technology through clinical support, case discussions, systematic training, and professional education, enhancing their confidence in handling complex cases. As physicians diagnostic and case management capabilities improve, the range of indications they can cover also expands, consequently releasing more previously unmet invisible orthodontic needs. This means that medical service capabilities are becoming a key pivot in driving penetration rates in lower-tier markets, forming a positive cycle of "enhanced physician capabilitiesstrengthened clinical trustgrowth in case numbers." With the coverage of lower-tier markets constantly expanding, clinical support deepening, and the acceleration of segmented demands like early orthodontics being released, high-quality invisible orthodontic services are expected to reach more physicians and patients. This increase in penetration driven by professional capabilities will continue to consolidate ANGELALIGN's leading advantage in the Chinese market and become an important driving force for the overall growth in case numbers. In summary, the core signals released from ANGELALIGN's mid-term performance in 2026 indicate that the company has established a more balanced and resilient global growth structure. This structure is supported not by a single market dividend, but by the systemic synergy of clinical capability, global operations, and scale efficiency. As these capabilities continue to market share and operational results, ANGELALIGN's long-term growth certainty and global value potential are expected to further open up.