New York, New York--(Newsfile Corp. - September 4, 2025) - Emerging Growth Research today announced the initiation of coverage on SBC Medical Group Holdings, Inc. (NASDAQ: SBC) with a Buy-Extended rating and a 12-month price target of $9.00, more than double the Company's recent closing price of $4.06.
The initiation report highlights SBC's dominant position in Japan's cosmetic treatment industry, its strong cash position, and growing global expansion strategy, while also acknowledging near-term revenue pressures due to pricing competition in the domestic market.
Key Highlights from the Initiation Report:
- Market Leadership: SBC operates 259 clinics across Japan, Vietnam, and Singapore, with over 6.3 million annual patient visits and a 72% repeat rate, making it the largest player in Japan's fragmented cosmetic treatment industry.
- Global Expansion: The Company is executing an international strategy with recent acquisitions in Singapore, new senior hires from Amazon, Rakuten, and P&G, and plans for further expansion in Southeast Asia and the U.S.
- Strong Balance Sheet: As of Q2:25, SBC held $153 million in cash against just $7 million in long-term debt. Net cash represents ~35% of SBC's market capitalization.
- Revenue Trends: Q2:25 revenue was $43.4 million, down (18)% year-over-year, primarily due to revised franchising fees and the exit from staffing services. Underlying procedure volumes grew, supported by a 16% increase in clinic count.
- Valuation Opportunity: Despite short-term headwinds, Emerging Growth Research views SBC as heavily undervalued. A DCF analysis implies a fair value of $9.19 per share, rounded down to the $9.00 price target.
According to Emerging Growth Research's analysis, while near-term growth is expected to remain pressured through early 2026, SBC's long-term prospects are compelling. The Company's ample liquidity, franchise-based business model with 70%-75% gross margins, and aggressive M&A strategy position it as a leading consolidator in the global cosmetic treatment industry.
For a copy of the full initiation report, please visit:
or
- https://www.EmergingGrowth.com/profile/sbc/ (on the right side of the page as you scroll down)
About SBC Medical Group Holdings, Inc.
Founded in 2000 as Shonan Beauty Clinic in Japan, SBC Medical Group Holdings, Inc. (NASDAQ: SBC) has grown into a leading global healthcare management company specializing in cosmetic treatments. Through its franchise model, SBC operates across dermatology, aesthetic surgery, hair removal, orthopedics, ophthalmology, fertility, dentistry, and related services. With operations concentrated in Japan and growing footprints in Vietnam and Singapore, SBC continues to pursue international expansion.
For more information, please visit https://sbc-holdings.com/en.
Forward-Looking Statements
This press release contains forward-looking statements concerning business operations and financial performance as well as plans, objectives, and expectations for SBC Medical Group Holdings, Inc. that are subject to risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. These include but are not limited to statements regarding revenue trends, margin expectations, M&A expansion strategy, and the timing of anticipated growth in 2026 and beyond. Actual results could differ materially due to competitive, regulatory, operational, or market risks.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265106
