China Merchants Securities: The consumer health market is divided, focusing on invisible orthodontics and CGM going overseas
The Zhitong Finance App learned that China Merchants Securities released a research report saying that the dental care service sector had significant structural differentiation in 2025, orthodontic recovery was the most clear, implants continued to “pay with volume”, and companies in the consumer medicine sector were actively expanding overseas markets. In particular, companies represented by invisible orthodontics and CGM went overseas with remarkable results. The bank observed that the number of domestic and overseas cases of Time Angel in the first half of the year exceeded expectations. The total number of 2026H1 invisible correction cases was about 316,600 (+40.2% YoY), with revenue of US$229-231 million (+41.9% — 43.1% YoY). It is recommended to focus on consumer medicine companies that go overseas.
The main views of China Merchants Securities are as follows:
The structure of dental care services is differentiated, and orthodontic resuscitation is the most clear
In the field of dental care services, the orthodontic business showed restorative growth due to improved demand for dental care services. The dental care service sector was markedly structured in 2025, with orthodontic recovery being the clearest. Implantation continues to be “quantitatively compensated”, pediatrics is weakly affected by consumption, and restoration and comprehensive integration reflect the resilience of immediate needs.
Consumer medicine overseas has achieved remarkable results, and there is great potential for invisible orthodontics and CGM
The boom in the consumer medicine sector is greatly affected by domestic demand and consumption. Various companies are actively expanding overseas markets. The bank observed that companies represented by invisible orthodontics and CGM in the consumer medicine sector have achieved remarkable results in expanding overseas in 2025. The bank believes that the domestic penetration rate of the invisible orthodontics industry is steadily increasing. The domestic invisible orthodontics industry is sinking further from Tier 1 and 2 cities to Tier 3 and 4 cities, and the growth rate of orthodontic demand among young people shows greater resilience compared to adult orthodontics. Invisalign occupies a large market share globally, and domestic enterprises have great potential for overseas expansion. Currently, domestic BGM is in the inventory replacement stage. There is plenty of room for domestic CGM penetration rate to increase. The global Abbott + Dekang oligarchy pattern is stable, domestic enterprises are gradually expanding overseas markets, and there is plenty of space for overseas markets. It is recommended to focus on overseas companies in the consumer medicine sector, such as Times Angel, Yuyue Healthcare, Kefu Healthcare, and Sannuo Biotech.
The Times Angel faucet is stable, and domestic demand overseas two-wheel drive
Times Angel has a stable position as a leader in the domestic invisible orthodontic industry. Domestic demand and overseas business are two-wheel drive, creating a global supply chain system. (1) Domestic demand: The competitive pattern of the domestic invisible correction industry was gradually optimized. In 2025, 270,000 domestic cases were achieved, an increase of 26% over the previous year. The increase in domestic demand for invisible braces came from the gradual increase in market share in third- and fourth-tier cities, the early childhood correction business growth and product structure optimization; (2) Overseas: Since the company expanded overseas markets, the number of overseas cases has grown rapidly. In 2022, the company officially launched a global business and acquired 51% of Brazil's Aditek shares. In 2025, the overseas market reached 250,000 cases, an increase of 82% over the previous year, and the share of overseas revenue increased to 44 %. After the adjustment, the division lost 10.54 million US dollars, which was drastically reduced. As overseas cases increased, the bank expects overseas business losses to narrow further in the second half of the year, covering Europe, North America, Asia Pacific, Brazil, etc., and the international market share is expected to gradually increase; (3) The company insists on building a global supply chain system, arranging medical design centers in Brazil and Southeast Asia, expanding Brazilian production centers for the production of Times Angel products, and is building an American production center.
The number of Times Angel cases in the first half of the year exceeded expectations
In 2026h1, the total number of invisible correction cases was about 316,600 (+40.2% year-on-year), including 168,000 overseas cases (+43.3%), 148,600 domestic cases (+36.8%); revenue of US$2.29-231 million (+41.9% — 43.1%), net profit of US$0.24-0.25.4 million (+69.0% — 78.9%). Reasons why the number of cases exceeded expectations: ① the international direct sales and clinical service network, which was heavily invested overseas in the early stages, released operating leverage; ② the domestic market sank and the recognition of the child and youth market increased.
Risk Alerts
Consumer demand falls short of expectations; industry competition intensifies; capacity construction falls short of expectations, etc.