Core Viewpoint - Emerging Growth Research has initiated coverage on SBC Medical Group Holdings, Inc. with a Buy-Extended rating and a 12-month price target of $9.00, which is more than double the company's recent closing price of $4.06 [1][2]. Company Overview - SBC Medical Group Holdings, Inc. was founded in 2000 as Shonan Beauty Clinic in Japan and has become a leading global healthcare management company specializing in cosmetic treatments [5]. - The company operates across various sectors including dermatology, aesthetic surgery, hair removal, orthopedics, ophthalmology, fertility, and dentistry, with a focus on international expansion [5]. Market Position - 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 [8]. - The company is executing an international strategy with recent acquisitions in Singapore and plans for further expansion in Southeast Asia and the U.S. [8]. Financial Performance - As of Q2 2025, SBC held $153 million in cash against just $7 million in long-term debt, with net cash representing approximately 35% of SBC's market capitalization [8]. - Q2 2025 revenue was $43.4 million, down 18% year-over-year, primarily due to revised franchising fees and the exit from staffing services, although underlying procedure volumes grew with a 16% increase in clinic count [8]. Valuation Insights - Despite short-term revenue pressures, Emerging Growth Research views SBC as heavily undervalued, with a DCF analysis implying a fair value of $9.19 per share, rounded down to the $9.00 price target [8].