HONG KONG (Reuters) - Hong Kong-based Modern Dental Group Ltd (3600.HK) said that any introduction of U.S. import tariffs on Chinese products will help it steal some market share from rivals, thanks to its small reliance on production in the Asian country.
Earlier this week, the United States proposed 25 percent tariffs on some 1,300 Chinese goods worth $50 billion, including scores of dental devices, components and accessories.
“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,” Chairman Chan Kwun Fung said in a statement late on Thursday, referring to China.
The company has offshore production facilities in countries such as Australia, China, Germany, Canada, the United States.
Revenue in North America from products made in the United States accounted for 25.6 percent of its total revenue, while import revenue of products manufactured in China and sold to the U.S. market amounted to 3.8 percent, the prosthetic devices producer and distributor said in a filing to the stock exchange.
The company’s financial performance would not be “materially and adversely” affected by potential import tariffs from the United States, it said.
Modern Dental, which has a market capitalization of $292 million, saw its shares slide 2.2 percent on Friday, lagging a 1.1 percent rise in the benchmark index .HSI.
U.S. President Donald Trump said on Thursday he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China, fuelling an already heated trade dispute between the world’s two biggest economies.
Reporting by Donny Kwok; Editing by Miyoung Kim and Himani Sarkar