With the United States slapping tariffs on Chinese imports, there is a growing market opportunity for rivals to Chinese companies to increase their market share in their respective segments and expand their foothold in the U.S.
Modern Dental Group Ltd, a Hong Kong-based firm, has identified trade opportunities in the escalating trade conflict between the United States and China over the latter’s coercive trade policies.
The Hong Kong based firm stated, the trade conflict will help it steal market share from rivals since its China-footprint is minuscule.
“The group would be in an ideal market position to capture the market share lost by its competitors who source their products from the PRC as a result of the potential import tariffs,” said Chairman Chan Kwun Fung in a statement while referring to China.
Modern Dental Group has offshore production facilities in countries including in the United States, Australia, Germany, Canada and China.
As per its filing to the Hong Kong Stock Exchange, its North American revenues sourced from products made in the United States account for nearly 25.6% of its total revenues; in comparison revenues from products made in China and sold in the U.S. market accounts for only 3.8% of its revenues.
The prosthetic devices producer and distributor said, its financial performance is not likely to be “materially and adversely” affected by import tariffs slapped by the United States on Chinese imports into the country.
With a market capitalization of $292 million, Modern Dental saw its shares slide by 2.2% on Friday, lagging behind a 1.1% rise of the benchmark index.