Yesterday, MissionIR attended Remedent's Virtual Road Show to better understand the company and its growth strategy. During the presentation, Remedent's Chairman and CEO Guy De Vreese provided an exciting overview of the company's powerful CAD/CAM (computer-aided design/computer-aided manufacturing) workflow, current victories, and planned expansion initiatives.
Remedent, developer, manufacturer, and marketer of oral car and cosmetic dental products that are distributed to more than 55 countries worldwide, has developed a powerful business model for bringing high-quality, affordable, 100% custom porcelain veneers to the global market, using proprietary technologies like a unique tray system that allows installation to be completed in just an hour, and high-precision fabrication using a proprietary scanning/modeling/manufacturing pipeline.
The primary component of the business and flagship brand, GlamSmile, is focused on this incredible veneer technology that can quickly transform a smile and change lives via a painless, affordable cosmetic dental solution now available to a massively-underserved multi-billion dollar worldwide market. As one of the first branded chain of focused cosmetic dental practices, GlamSmile holds profound value, amply reinforced by the successful roll out of operations in China and Europe.
In just two visits customers can walk away with a brand new set of beautiful veneers that are perfectly custom crafted to the topology of their own teeth/mouth to fit with maximum comfort. Using photo source captures of the patient's face, mouth, and teeth, in conjunction with a silicone impression taken from the teeth on the first visit, the veneers are hand drawn onto a high resolution 3D mesh generated from precision 3D scans by GlamSmile Smile Designers and the digital file is then sent to 3D printer/CNC machine. A second visit has customers experiencing revolutionary speed of installation, as the painless, reversible process which requires no injections/anesthetics, tooth reshaping, or healing time, is done sets at a time using the proprietary tray system (instead of one-at-a-time as in more typical and time consuming veneering).
By emphasizing an approach using a branded retail network of GlamSmile Studios to connect with the consumer directly, the company plans to create a completely self-contained vertical operation, from manufacturing to actual placement of the product in the studios. Other offerings like the wide range of products available via a 37.5% stake in fully-integrated OTC and oral care product manufacturer/marketer, Sylphar NV, with leading whitening brands like iWhite, CleverWhite, Whizzer, and RemeSense, are prominently put before consumers in this environment. REMI got its start in B2B tooth-whitening with products like the Remewhite Formulation+ gel for the high speed curing lamp, the Remecure, and GlamSmile White Boost available through dentists for home use. REMI is taking the bull by the horns, bringing the entire platform in-house, and rolling it out as an extremely appealing consumer-targeted concept.
The amazing growth potential of the GlamSmile China represents an optimal value for REMI and its shareholders (as most clinics are directly owned and very efficient), and a solid footprint of luxury cosmetic clinics is already in place in key markets like Beijing, Shanghai, Wenzhou, Hong Kong, Taipei, and Taiwan. The fully digital production pipeline allows capacity of up to 10k veneers a month and with Dec 2011 averaging some 23 customers a month in China (over RMB100M net sales per month, per clinic), the model's efficacy and potential is obvious. It is this clear vision that has management setting its sights on a larger, typically high-growth Asian market, including Japan and Korea, among other obvious targets like India. This capacity to expand via what are essentially franchisees will provide ample breathing room for the kind of continual R&D innovation that has propelled REMI this far.
Per unit valuation total places REMI's stake in the combined operations of GlamSmile China, the GlamSmile Franchise Business, and Sylphar at roughly $20M, nearly three times the company's current market cap of $7.13 million. The traction in the commercial space is unmistakable, from bypassing the dentist to radically improving margins from the direct to consumer approach using the radical Smile Consultancy idea, offering customers a smile coach that can help them make the right decisions or answer questions about the aesthetics of their teeth.
Recent closings of strategic financing with the prominent IDG Capital Partners and the retention of market intelligence, investor targeting, and tactical support powerhouse The MZ Group have placed REMI on a fast-track to execute their planned growth of this great concept in Asia, Europe, North America, and the Middle East. With immediate plans to continue expansion in the highest-growth Chinese Tier 1 and 2 cities, REMI looks to gain a nice bounce before expansion really kicks off globally with what is an easy to implement, easy to execute model that strikes deep into the consumer space with low prices and superior product/delivery.
By offering full dental services in the clinics alongside other excellent products in the same vein, REMI has hit upon a solution set with serious kinetic energy stored inside. As more and more consumers look for a solution to typical discolored/stained and Tetracycline (broad spectrum antibiotics that can cause permanent staining) stained teeth, broken or crooked teeth, and gaps, amid a tightening global economic landscape, this kind of high-value, affordable dental cosmetic solution will become even more popular.
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