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A New Addition to my 2025 Global Portfolio?

AL
AlpharumNot Invested
Community Contributor

Published

December 03 2024

Updated

December 06 2024

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This Japanese-based company, SBC Medical Group Holdings Inc. (NASDAQ: SBC) is now making waves in the aesthetic healthcare market, offering a promising opportunity for investors in 2025. 

After its merger with Pono Capital Two, Inc., SBC is now listed on the Nasdaq Global Market under the ticker symbol “SBC.” This listing not only gives the company better access to international capital but also paves the way for its ambitious growth plans in the United States and Southeast Asia

Since the merger, SBC has been quick to build on its elevated status. One of its major moves includes acquiring Aesthetic Healthcare Holdings Pte. Ltd. (AHH), a leading operator of aesthetic treatment clinics in Singapore. 

This acquisition adds 21 clinics under four established brands to SBC’s portfolio, making Singapore a central hub for its Asian operations. This strategic expansion positions SBC to tap into the growing demand for aesthetic medical services in the region.

SBC has also partnered with Japan’s MEDIROM Healthcare Technologies Inc., known for its extensive network of relaxation studios. This collaboration aims to blend SBC’s expertise in aesthetic healthcare with MEDIROM’s wellness services, offering comprehensive health and beauty solutions to a combined customer base of over 4 million people. This partnership not only boosts SBC’s market reach but also enhances its reputation in the industry.

On the financial front, SBC is showing impressive growth. For the third quarter of 2024, the company reported $53 million in revenue, a 12% increase compared to the same period in 2023. In the first nine months of the year, revenue reached $160 million, up 23% from the previous year. 

Net income also grew significantly, with $40 million recorded for the nine-month period, a 60% jump from 2023. These figures highlight SBC’s ability to grow its business and deliver strong results.

SBC’s expanding network of clinics—224 as of September 2024—shows its scalable business model is working. Each new clinic strengthens its market position and adds to its revenue, making SBC a strong player in the aesthetic healthcare industry.

For investors, SBC offers a compelling story of growth and innovation. Its Nasdaq listing increases visibility and makes it easier to invest in the company. The recent acquisitions and partnerships highlight SBC’s commitment to expansion and creating value for shareholders. Coupled with its solid financial performance, SBC is well-positioned for long-term success.

As more people focus on wellness and aesthetics, SBC Medical Group is leading the way with its cutting-edge services. For investors, this is a chance to be part of a thriving market with a company that’s delivering on its promises. 

With its recent achievements and ambitious plans, SBC Medical Group is definitely a worthwhile stock to be taking up a space in my portfolio for 2025.

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Disclaimer

The user Alpharum holds no position in NasdaqGM:SBC. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
US$15.0
66.5% undervalued intrinsic discount
Alpharum's Fair Value
Future estimation in
PastFuture0100m200m300m400m500m600m20222023202420252026202720282029Revenue US$642.4mEarnings US$156.5m
% p.a.
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Current revenue growth rate
5.19%
Healthcare Services revenue growth rate
0.28%