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Modern Dental Group Ltd (3600) Fair Value & Analysis

Healthcare · HK · Market cap HK$5.8B

MD Modern Dental Group Ltd 3600 · HK
PriceHK$8.28
Fair ValueHK$13.21
Upside+59.5%
Quality78/100
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Healthy Growth
Solidly profitable · 16.0% net margin
Low debt · generates free cash flow
4.31% dividend yield
Ranks above peers (13/14)
Wide moat 71/100
Evidence: High Range HK$8.99 – HK$16.48 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Share price +7.5% over the past month.

A strong business, screening 60% undervalued on our models.

What matters now

  • The rarer combination: high quality (78/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$8.99). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (HK$8.99 to HK$16.48) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$8.42 HK$1.41 Fair Value HK$13.21 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.41 – HK$8.42 · fair‑value band HK$8.99 – HK$16.48 · the HK$8.28 price screens below the HK$13.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Modern Dental Group Ltd (3600) currently trades at HK$8.28, while our model-based Fair Value estimate is HK$13.21, implying the stock looks roughly 59.5% undervalued today. The Quality Score stands at 78/100 (high quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Modern Dental Group Ltd generated revenue of HK$3.7B at a net margin of 16.0%. Revenue grew 14.4% year over year. It earns a return on equity of 20.0%. The balance sheet holds a net cash position of HK$113M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$8.99 (bear case) to HK$16.48 (bull case); at HK$8.28, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 111% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -46% fair-value upside, at 60%, 3600 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$9.17 HK$15.00 HK$24.21 80
Residual Income HK$4.04 HK$5.32 HK$17.39 76
Rev-Margin DCF HK$7.94 HK$13.04 HK$19.51 74
All 26 models by family
DCF Models
FCF DCF HK$9.21 HK$15.54 HK$25.87 38
Owner Earnings HK$9.00 HK$15.17 HK$25.24 31
5Y Revenue Exit HK$7.94 HK$13.12 HK$20.03 39
5Y EBITDA Exit HK$9.30 HK$15.88 HK$23.99 41
5Y P/E Exit HK$9.74 HK$16.77 HK$24.66 38
10Y Revenue Exit HK$8.08 HK$13.04 HK$20.37 36
10Y EBITDA Exit HK$9.18 HK$14.99 HK$23.55 37
10Y P/E Exit HK$9.46 HK$15.62 HK$24.09 35
Earnings-Based
Graham-Dodd HK$4.35 HK$18.86 HK$25.79 54
Lynch FV HK$4.85 HK$6.93 HK$9.00 50
PEG = 1.0 HK$4.85 HK$6.93 HK$9.00 46
EPV HK$5.89 HK$6.76 HK$7.51 59
Dividend Discount
Gordon GGM HK$1.75 HK$3.49 HK$5.28 70
DDM Multi-Stage HK$1.75 HK$3.02 HK$3.68 61
Multiples
P/E Multiple HK$10.54 HK$14.06 HK$17.57 63
P/S Multiple HK$8.15 HK$10.86 HK$13.58 58
P/B Multiple HK$8.15 HK$10.86 HK$13.58 55
EV/EBIT HK$10.27 HK$13.56 HK$16.86 53
EV/EBITDA HK$10.20 HK$13.47 HK$16.74 54
EV/Revenue HK$7.44 HK$10.46 HK$13.49 43
Asset-Based
NCAV (Graham) HK$1.76 HK$2.36 HK$3.52 50
Growth DCF
Growth DCF HK$9.17 HK$15.00 HK$24.21 80
Rev-Margin DCF HK$7.94 HK$13.04 HK$19.51 74
Economic Profit
Residual Income HK$4.04 HK$5.32 HK$17.39 76
ROIC Compounder HK$6.53 HK$8.49 HK$10.97 72
Growth Earnings
Growth-Adj P/E HK$8.28 HK$11.83 HK$15.38 68

Widest divergence: DCF Models (HK$15.17) versus Asset-Based (HK$2.36). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$3.7B
Revenue growth (YoY) +14.4%
Net margin 16.0%
Return on equity 20.0%
Free cash flow HK$691M FY2025
P/E ratio 9.6 as of Jul 2, 2026
More key figures
Operating margin 20.6%
EPS (TTM) HK$0.3000
Dividend yield 4.3%
EPS growth (YoY) +62.1%
Net cash HK$113M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 78/100

Of which business quality 76 · Market factors (momentum, volatility) 86

Profitability 71
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 90
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 98
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Modern Dental Group Limited, an investment holding company, engages in production, distribution, and trading of dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally. The company operates through three segments: Fixed Prosthetic Devices; Removable Prosthetic Devices; and Others.

Full company description

Modern Dental Group Limited, an investment holding company, engages in production, distribution, and trading of dental prosthetic devices in Europe, Greater China, North America, Australia, and internationally. The company operates through three segments: Fixed Prosthetic Devices; Removable Prosthetic Devices; and Others. It offers restorative dental procedures, such as crowns, bridges, and implants. The company also produces full and partial dentures with and without metal frameworks. In addition, it offers orthodontic devices, sports guards, anti-snoring devices, raw materials, clear aligner, and dental equipment; and services for educational events and seminars. The company sells its products under the Labocast, Permadental, Elysee, Yangzhijing, Modern Dental Laboratory, Modern Dental USA, and Southern Cross Dental brands. Modern Dental Group Limited was founded in 1986 and is based in Cheung Sha Wan, Hong Kong

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Modern Dental Group Ltd reported revenue of HK$3.7B in FY2025 versus HK$3.0B in FY2021, a compound +6.0%/yr. Reported net income was HK$597M in FY2025, compounding +13.4%/yr from FY2021.

Growth Quality 94/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$3.7B
Latest YoY
+11.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.3%
Avg. growth/yr (13Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.5%
Revenue +6.0%/yr
FY21 HK$3.0B
FY22 HK$2.8B
FY23 HK$3.2B
FY24 HK$3.4B
FY25 HK$3.7B
Net income +13.4%/yr
FY21 HK$361M
FY22 HK$220M
FY23 HK$404M
FY24 HK$408M
FY25 HK$597M
Character of growth · EPS growth decomposed (2014-2025) +17.5 % p.a.
Revenue per share +9.3 pp

of which total revenue +10.3 pp · buybacks/dilution −1.0 pp

EBIT margin +2.4 pp
Tax rate +1.7 pp
Residual (interest, one-offs) +4.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Modern Dental Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/3600

Peer Group

Medical Instruments & Supplies · 202 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 78 · Top 25%
Fair Value upside +60% · Top 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 14% · Above median
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/E (TTM) 9.6× · Cheaper than 75% of peers
P/B 1.75× · Cheaper than median
P/S (TTM) 1.54× · Cheaper than median
P/FCF 1.1× · Cheaper than median
EV/EBITDA 6.4× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 72 · sector 26
PAST 80 · sector 25
HEALTH 94 · sector 96
DIVIDEND 86 · sector 36

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Intuitive Surgical, Inc ISRG $401.27 $150.04 -63%
EssilorLuxottica Société anonyme 1EL €164.40 €68.55 -58%
Medline Inc MDLN $35.50 $30.15 -15%
Becton, Dickinson and Company BDX $181.41 $100.46 -45%
Alcon Inc ALC $73.58 $39.78 -46%
ResMed Inc RMD $226.00 $187.89 -17%
West Pharmaceutical Services, Inc WST $352.29 $141.58 -60%
Sartorius Stedim Biotech S.A DIM €180.30 €48.88 -73%
Coloplast A/S COLOB kr 429.70 kr 382.22 -11%
Gan & Lee Pharmaceuticals., a biopharmaceutical company, 603087 ¥77.48 ¥27.22 -65%

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Frequently asked questions

Is Modern Dental Group Ltd (3600) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$13.21 versus a price of HK$8.28, about +60% (undervalued).
What is the fair value of 3600?
Our model-based fair value for Modern Dental Group Ltd is HK$13.21 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$8.28.
What is the quality score of 3600?
Modern Dental Group Ltd has a Quality Score of 78/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Modern Dental Group Ltd (3600)?
Modern Dental Group Ltd reported trailing-twelve-month revenue of about HK$3.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 3600?
The net profit margin of Modern Dental Group Ltd is about 16.0%, meaning it keeps roughly 16.0% of revenue as net income. Based on the latest reported figures.
Does Modern Dental Group Ltd pay a dividend?
Modern Dental Group Ltd currently shows a dividend yield of about 4.31% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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