Emerging Growth Research Initiates Coverage on SBC Medical Group Holdings, Inc. with Buy-Extended Rating and $9.00 Price TargetSeptember 04, 2025 9:00 AM EDT | Source: Emerging Growth ResearchNew 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 ...

Financial Data and Key Metrics Changes - Total revenue declined by 18% year on year due to strategic restructuring and increased point redemption by customers [5][6][21] - The elevated effective tax rate was primarily due to non-deductibility of some executive compensation and temporary timing differences in aircraft sales recognition [6][7] Business Line Data and Key Metrics Changes - The average customer spending is trending lower than last year, but there are early signs of recovery in certain areas such as the gorilla clinic [5][6] - The Jun clinic and Neo Skin clinic are achieving an average spend per customer that exceeds existing clinics, indicating strong growth potential [12][13] Market Data and Key Metrics Changes - The aesthetics medicine industry in Japan is experiencing severe competition, yet customer visits have increased to 6,310,000 annually, with a high repeat rate of 72% [4][5] - The dermatological aesthetics segment is showing a higher growth rate, presenting significant growth potential [10] Company Strategy and Development Direction - The company is implementing a multi-brand strategy tailored to different market segments to meet diverse customer needs [10][14] - The focus is on enhancing the medical tourism business, particularly targeting Chinese tourists [15] - The company aims to expand its clinic network from 260 to 1,000 clinics over the next ten years [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while there were negative factors impacting performance, they believe the business will improve moving forward [35][41] - The company is entering a phase of growth investment after completing business restructuring [44] Other Important Information - The company conducted its first-ever share buyback from May to July, which positively impacted share price and liquidity [22][44] - The company is considering new share issuance and partial sale by the founder to improve accessibility for a broader investor base [22][46] Q&A Session Summary Question: Are the new clinics starting up as planned? - Newly opened clinics are seeing steady customer visits, with an increase in male customers noted [24][25] Question: What is the future pricing trend? - The company is adopting a multi-brand strategy with different pricing tiers to meet varying customer needs [26] Question: Can you explain the growth strategy regarding organic and inorganic growth? - The company plans to proactively open new clinics and conduct M&A, with a strong track record of turning around acquired clinics [27][29] Question: How many clinics are you planning to open in Japan? - The company aims to increase the number of clinics to 1,000 over the next ten years [32] Question: What is the outlook for future profitability? - The company expects to secure sufficient margins and improve overall profitability as new clinics are established [34] Question: How is the company addressing the current share price trend? - The company is focusing on improving liquidity through share buybacks and considering dividend payments [43][44] Question: What are the plans for the CEO's shareholding? - The CEO is considering selling shares to improve liquidity and fund investments [46]

Investor Presentation August 2025 2Q2025 Disclaimer This presentation contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's financial pe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-41462 SBC Medical Group Holdings Incorporated (Exact Name of Registrant as Specified in Its Charter) Delaware 88-1192 ...

Exhibit 99.1 SBC Medical Group Holdings Announces Second Quarter 2025 Financial Results IRVINE, Calif. — Aug 13, 2025—(BUSINESS WIRE)—SBC Medical Group Holdings Incorporated (NASDAQ: SBC, "SBC Medical" or the "Company"), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced its financial results for the second quarter of fiscal year 2025 (three months ended June 30, 2025) and for the first half of fiscal year 2025 (six months ended June 30, ...

Company Overview - SBC Medical Group Holdings Incorporated is a global franchise and provider of services for aesthetic clinics, headquartered in Irvine, California and Tokyo, Japan [6] - The company focuses on providing comprehensive management services to franchisee clinics, including advertising, staff management, booking reservations, and medical equipment procurement [6] Leadership Appointment - Shinya Inoue has been appointed as Chief Marketing Officer (CMO) effective July 1, 2025 [1][2] - Inoue will lead efforts to enhance the brand value of the group's portfolio, including Shonan Beauty Clinic, and will focus on digital innovation in marketing [2][3] Experience and Background of Shinya Inoue - Inoue has extensive experience in brand strategy and integrated marketing, having worked at companies such as P&G Japan, Eli Lilly Japan, Adobe, and KDDI [4] - He previously served as CMO at Pioneer Corporation, where he was responsible for launching the marketing organization and restructuring planning and communication areas [4] Strategic Vision - The company aims to strengthen its global competitiveness and contribute to the sustainable advancement of the medical aesthetics industry through strategic initiatives [3] - Inoue expressed commitment to making aesthetic medicine more accessible and transforming it into a more approachable part of everyday life [5]

Group 1 - SBC Medical Group Holdings Incorporated recently participated in several prominent investor conferences in May and June 2025, delivering webcast presentations and conducting one-on-one meetings with institutional investors [1][3] - The company is headquartered in Irvine, California, and Tokyo, Japan, and focuses on providing management services and products to cosmetic treatment centers [2] - SBC Medical offers comprehensive management services to franchisee clinics, including advertising, staff management, booking reservations, employee housing assistance, clinic construction, medical equipment procurement, and IT software solutions [2] Group 2 - The main speakers at the recent investor conferences included Yuya Yoshida (CFO), Hikaru Fukui (Head of IR), and Stephen Rodgers (Head of Overseas Department) [3] - Key conferences attended by SBC Medical include the Zacks SCR Life Sciences Virtual Investor Forum, Sidoti Small-Cap Virtual Conference, Noble Capital Markets' Emerging Growth Virtual Equity Conference, and Lytham Partners Spring 2025 Virtual Investor Conference [3]

Core Insights - SBC Medical Group Holdings Incorporated announced the participation of 22 representatives, including its CEO Yoshiyuki Aikawa, at "The 113th Congress of Japan Society of Aesthetic Surgery" [1][4] - The congress focused on international trends and future developments in aesthetic medicine, promoting collaboration among experts [2][4] Company Overview - SBC Medical is headquartered in Irvine, California, and Tokyo, Japan, providing management services and products to cosmetic treatment centers [13] - The company focuses on comprehensive management services for franchisee clinics, including marketing, staff management, and medical equipment procurement [13] Event Details - The congress took place from May 28 to May 30, 2025, at The Okura Tokyo, under the theme "TO BE THE BEST -The Journey of Knowledge Never Ends-" [2][8] - Dr. Ayaka Nishikawa served as Vice Chair of the congress, facilitating discussions on aesthetic medicine [2][5] Research Presentations - Key presentations included topics on cosmetic medical business management, fat injection breast augmentation, and microneedle RF techniques [8][10] - Each speaker shared insights from their clinical practice and research, contributing to the advancement of knowledge in the field [4][7] Industry Trends - The field of aesthetic medicine is rapidly evolving, with a growing emphasis on technological advancements and diverse customer needs [7] - SBC Medical is committed to engaging with academic societies and incorporating the latest global knowledge and technologies into its practices [7]

Summary of SBC Medical Group Holdings Conference Call Company Overview - SBC Medical Group Holdings operates in the aesthetic medicine sector, providing comprehensive management support services to franchise clinics, generating income through franchise fees [4][5] - The company was successfully listed on the Nasdaq in September 2024, marking a significant milestone in its expansion plans [4] - SBC serves over 6 million patients annually, making it the largest provider in Japan's aesthetic medicine market [5] Financial Performance - Revenue decreased by 14% year-over-year due to business restructuring and currency fluctuations, but excluding these factors, there was a 5% growth [9] - The EBITDA margin stands at 52%, and the annualized Return on Equity (ROE) is 41%, indicating strong profitability [10] - The company maintains a robust balance sheet with a healthy cash position and minimal debt obligations, allowing for strategic growth opportunities [10] Business Strategy - SBC is focusing on a multi-brand strategy to cater to diverse customer needs in aesthetic medicine [7][15] - The company aims to evolve into a global medical services provider by 2027, with a strong emphasis on aesthetic medicine and international expansion [14] - The Japanese market has a penetration rate of around 10%, indicating substantial growth opportunities, particularly among middle-aged women and male customers [15] Pricing Strategy - A major overhaul of the pricing structure was implemented in March 2025 to streamline pricing and improve cost efficiency [11] - Franchise fee structures were revised to alleviate financial burdens on newly opened clinics, promoting long-term sustainability [13] International Expansion - SBC is focusing on the US and Asia for international growth, with plans to establish a presence in the US medical spa market [19] - The company acquired a leading provider in Singapore, marking a key milestone in its Asian expansion strategy [20] - Local market adaptation is crucial for successful international operations, with plans to integrate Japanese expertise selectively [31] New Initiatives - The launch of SBC Wellness, a corporate employee benefit program, aims to meet the growing demand for health-oriented workplace initiatives [21] - A strategic partnership with a leading vertical SaaS provider for aesthetic clinics was announced to enhance operational capabilities [21] Shareholder Value and Capital Policy - The company is considering a share repurchase program to improve liquidity and enhance shareholder value, with an initial approval for a buyback of 5 million shares [22][23] - Additional liquidity measures, including potential secondary offerings, are being evaluated to balance supply and demand in the market [28][29] Market Response - The multi-brand strategy has been well received, with the recent launch of the SBIC NeoSkin Clinic experiencing strong demand and limited appointment availability [34] This summary encapsulates the key points discussed during the SBC Medical Group Holdings conference call, highlighting the company's strategic direction, financial performance, and market initiatives.

Summary of SBC Medical Group Holdings Conference Call Company Overview - SBC Medical Group Holdings operates primarily in the aesthetic medicine sector, providing comprehensive management support services to franchise clinics, generating income through franchise fees [4][5] - The company achieved a significant milestone by listing on the Nasdaq stock exchange in September 2023, reflecting strong financial performance and growth potential [4] Market Position and Growth - SBC Medical serves over 6 million patients annually, making it the largest provider in Japan's aesthetic medicine market [6] - The company has maintained strong growth despite increasing competition by implementing strategic pricing models and expanding its clinic network [5] - The Japanese aesthetic medicine market has a penetration rate of around 10%, indicating substantial growth opportunities, particularly among middle-aged women and male customers [14] Financial Performance - The company underwent business restructuring in early 2024, leading to a 14% year-over-year decrease in revenue; however, excluding these effects, a 5% growth was achieved [8] - SBC Medical maintains an EBITDA margin of approximately 52% and an annualized ROE of 41%, indicating strong profitability [8] - The company has a healthy cash position and minimal debt obligations, providing flexibility for strategic growth opportunities [9] Strategic Initiatives - A major overhaul of pricing was implemented in March 2025 to streamline pricing structures and improve cost efficiency [10][11] - The franchise fee structure was revised to support long-term growth and sustainability of franchise clinics, easing initial cost pressures [12] - Future growth strategies include expanding service offerings, enhancing international presence, and focusing on high-demand areas such as orthopedics and ophthalmology [13][16] International Expansion - SBC Medical is focusing on the US and Asia for international expansion, with plans to establish a presence in the rapidly growing US med spa market [17] - The acquisition of a leading provider in Singapore marks a key milestone in the company's expansion strategy across Asia [18] Capital Allocation and Shareholder Value - The company is considering measures to improve stock liquidity, including a share repurchase program of 5 million shares, reflecting confidence in the company's fundamentals [19][20] - The share buyback aims to enhance market liquidity and provide an exit mechanism for large shareholders [27][28] - Concerns about share dilution from new share issuance are acknowledged, but the company aims to implement growth-oriented capital policies [29][30] Future Outlook - Key growth drivers include franchise expansion, dermatology services, and overseas market penetration [24][25] - The company plans to continue enhancing its multi-brand strategy to meet diverse customer needs and improve accessibility [23] Conclusion - SBC Medical Group Holdings is well-positioned for sustainable growth through strategic initiatives, strong financial performance, and a focus on expanding both domestically and internationally [20][32]