In the fast-paced world of healthcare, time is a precious commodity. Physicians, especially surgeons, are often bogged down by administrative tasks, leaving less time for patient care. Fortunately, innovations like AI diagnostics, surgical robots, and wearable technology are emerging, along with service organizations that lighten the burden of administrative work. This allows medical professionals across various segments to streamline their operations and enhance performance. SBC Medical Group Holdings (SBC), a Tokyo-based medical services company, is at the forefront of this trend. With a history in the aesthetics sector, SBC specializes in solving the problems of medical care providers.
SBC’s roots lie in providing management services to cosmetic treatment centers in Japan, an industry fueled by rising demand for procedures such as dermal fillers, Botox, eyelid surgery, and more. SBC’s innovative business model introduces the franchisee-franchisor model to the aesthetics industry, a model well-established in sectors like restaurants and now making its mark on healthcare, including medical clinics. SBC, as the pioneer of this model in the global aesthetics industry, enjoys a first-mover advantage. The company holds the No. 1 position in Japan’s growing aesthetics medical market, generating stable and high-profit margins through ongoing franchise fees.
This model involves franchisor-franchisee agreements between SBC’s Japanese subsidiaries and medical corporations, overseeing a network of 218 clinic treatment centers across Japan, with two additional clinics operating internationally. These clinics, operating under the Shonan Beauty Clinic brand, provide a wide range of services from breast augmentation and laser hair removal to cosmetic dental procedures.
The administrative tasks associated with these medical services can be overwhelming without proper support. SBC provides comprehensive management services to franchise clinics, addressing a variety of needs. Depending on the practice’s requirements, SBC can handle IT, advertising and marketing (including social media management), hiring, payroll, reservations, staff housing, and more. SBC extends its support further, encompassing clinic construction and design, procurement and resale of medical equipment and consumables, provision of cosmetic products to patients, licensing and intellectual property management, customer loyalty programs, and other essential services.
These time-consuming tasks can burden practice owners, hindering their ability to dedicate their full attention to providing high-quality patient care. While the services may vary, the overarching goal remains the same: to create greater efficiencies for medical practices, saving healthcare professionals valuable time and streamlining their operations. This allows doctors to focus on what they do best – caring for their patients. Crucially, SBC’s services are not limited to a specific medical specialization or jurisdiction. Since its inception, the company has expanded its reach, offering high-quality services to medical corporations globally, including its first clinics in Vietnam and the United States.
SBC’s recent debut as a publicly traded company on the Nasdaq offers investors the opportunity to participate in its expanding total addressable market. SBC specializes in providing comprehensive management services to franchisee healthcare clinics. Incorporated in 2023, SBC benefits from the expertise of its management team, boasting over two decades of industry experience. Dr. Yoshiyuki Aikawa, SBC’s CEO and Chairman, has led Aikawa Medical Group (now known as SBC) for over two decades. He also served as president and director of the Japanese Society of Aesthetic Plastic Surgery, Harvard Medical School, and PGA. Yuya Yoshida, SBC’s Chief Operating Officer, brings seasoned capital markets expertise, previously working at Rakuten Group Co. and specializing in mergers and acquisitions at Mitsubishi UFJ Financial Group.
With 166 franchise clinics, SBC has established itself as Japan’s largest aesthetic medical group. While the company is actively expanding, Japan remains its primary market, where it has a proven track record of success. SBC plans to continue its growth in Japan while pursuing new opportunities in the U.S. and Southeast Asia. Japan’s cosmetic surgery market has consistently grown, projected to expand at a compound annual growth rate (CAGR) of 8.1% until 2033, reaching a value of $41.6 billion, up from $19 billion in 2023. Meanwhile, the country’s medical aesthetics market, valued at $2.6 billion last year, is experiencing a CAGR of 13% and is expected to reach $9 billion by 2033.
Investors interested in SBC’s growth trajectory will find its fundamentals compelling. For the fiscal year ending December 31, 2023, SBC’s revenue increased 11% to $193 million, with an EBITDA of $82 million and a net income of $39 million. For the three months ending March 31, 2024, revenue surged 27.72% to approximately $54.8 million, with a net income of approximately $18.7 million. SBC’s balance sheet supports its growth, with approximately $96 million in cash and cash equivalents as of March 31, 2024. SBC is not only providing high-quality comprehensive management services to medical corporations and expanding its Shonan Beauty Clinic brand but doing so profitably.
SBC Medical Group Holdings began trading on the Nasdaq under the ticker symbol SBC on September 18 following a business combination with Pono Capital Two (PTWO), a special purpose acquisition company (SPAC). Investors seeking to participate in SBC’s growth story now have the opportunity to do so in the stock’s early days of trading on the Nasdaq market.
