Tag: Perfect Medical Health Management Limited

Net profit margin maintained at 22.7% for the year with 15 new shop openings in Hong Kong and Mainland China

RESULTS HIGHLIGHTS

• The Group’s revenue amounted to HK$1,393.3 million, supported by the pickup in consumption momentum and the contribution from new shops in both Hong Kong and Mainland China.
• The Group’s net profit slightly increased by 0.1% to HK$315.8 million, representing a net profit margin at 22.7%. Basic earnings per share were HK25.1 cents. Excluding the one-off government subsidies in the last financial year, the net profit increased by 6.8%.
• The Group continues to maintain a strong financial position with bank and cash balance of HK$575.3 million without external bank borrowing.
• The Board recommends the payment of a final dividend of HK11.9 cents per share and a special dividend of HK5.4 cents per share. Together with the interim dividend of HK13.2 cents per share and the special dividend of HK1.0 cent per share, the total dividend per share is expected to be HK31.5 cents per share for the full year, representing a total dividend payout ratio of 125.5%.
• The Group’s total gross floor area now stands at 304,000 square feet.

Perfect Medical Health Management Limited (the Company, HKG: 1830), one of the largest aesthetic medical operators in the world, together with its subsidiaries (collectively referred to as the Group), is pleased to announce its annual results for the year ended 31 March 2024.

For the year under review, the Group delivered a sustainable performance, supported by the pickup in consumption momentum and the contribution from new shops in both Hong Kong and Mainland China. The Group’s revenue increased by 0.3% to HK$1,393.3 million (FY2022/23: HK$1,389.3 million). Profit attributable to equity holders of the Company was HK$315.8 million, increased by 0.1% year-on-year (FY2022/23: HK$315.6 million), representing a net profit margin at 22.7% for the year (FY2022/23: 22.7%). Basic earnings per share were HK25.1 cents (FY2022/23: HK25.3 cents). As of 31 March 2024, the Group’s total gross floor area stands at 304,000 square feet.

Hong Kong Operation
Revenue from Hong Kong operation increased by 4.0% to HK$1,081.4 million (FY2022/23: HK$1,040.1 million), mainly attributable to the increasing customer patrons to the existing and new shops this year. Revenue from Hong Kong operation accounted for 77.6% (FY2022/23: 74.9%) of the Group’s revenue.

As of 31 March 2024, the Group had a well-established network of service centres in Hong Kong covering a total of 196,000 square feet. During the year, to enhance its store coverage and market share, the Group strategically added a total of eleven shops across different core areas in Hong Kong, including two flagship shops and nine residential shops.

The Group expanded its geographical footprint through a co-ordination between flagship and residential shops to add value to its customers and maintain agility in this evolving business landscape. This ecosystem seamlessly connects residential shops with flagship locations, resulting in overall consumption enhancement and new customers intake. The Group continued the residential shop expansion in the second half of the year, significantly bolstering its presence in Hong Kong.

To further diversify its non-aesthetic medical business, the Group forged a co-operation with a renowned Japanese brand, “Goku Spa”, in the Greater China region in January 2024, and launched “Goku Spa” sleeping therapy treatment outlets in Hong Kong during the year.

Regions outside Hong Kong
Revenue from regions outside Hong Kong was HK$311.9 million (FY2022/23: HK$349.2 million), supported by the positive revenue growth in Mainland China while impacted by the difficult environment in both Australia and Singapore. Currently, revenue from the regions outside Hong Kong accounted for 22.4% of the Group’s revenue (FY2022/23: 25.1%).

As of 31 March 2024, the Group has an extensive network of service centres in regions outside Hong Kong covering a total service area of 108,000 square feet.

For the year under review, revenue from Mainland China and Macau increased year-on-year, mainly benefiting from post-pandemic consumption recovery and contributions from new shops. For the year ended 31 March 2024, the Group redeployed a total of four new shops in Shenzhen and Shanghai. The performance of Australia and Singapore has been significantly affected by the persistent inflation pressures and wage increases, which also impacted the Group’s overall financial performance.

Prospects
Dr. Au-Yeung Kong, the executive director, chairman and chief executive officer of Perfect Medical, said that “the macroeconomic situation remains challenging. It is expected that both Hong Kong and Mainland China’s economy will maintain its recovery momentum, supported by the continual improvement in domestic spending and the governments’ stimulus measures.

We will continue to pursue the ‘Dual-Circulation’ strategy via the combination of aesthetic and non-aesthetic medical services, in order to navigate the present headwind and further promote the growth and profitability of Perfect Medical. Additionally, the Group is diversifying into non-aesthetic medical services, and establishing alliances with different international providers — a strategic move set to strengthen our frontier position in Hong Kong.

For the expansion in Mainland China, the Group is selectively expanding its presence in key economic regions like the Greater Bay Area and Eastern China. This measured expansion allows the Group to capitalise on viable opportunities while ensuring sustainable, long-term value creation for the investors and stakeholders. We are dedicated to fostering a sustainable business model that not only meets our economic objectives but also makes a positive impact on society.”

For further information of the Group’s FY2023/24 annual results, please refer to the Company’s Annual Results Announcement on the Hong Kong Stock Exchange website at: https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0628/2024062800644.pdf

About Perfect Medical Health Management Limited
Perfect Medical Health Management Limited is a multinational aesthetic medical corporate and one of the largest aesthetic medical operators in the world established in 2003. The Group focuses primarily on non-invasive aesthetic medical services and medical services in Hong Kong, China, Macau, Australia and Singapore with a total service area spanning approximately 304,000 square feet as of 31 March 2024. Its operation offers a broad spectrum of professional services with assurance of utmost safety and efficacy. The Company has been included as a constituent stock of the MSCI Hong Kong Micro Cap Index, demonstrating the confidence from the capital market and recognising the investment value of the Company.

For further information, please contact:

Perfect Medical Health Management Limited	iPR Ogilvy Limited
Marco So / Peter Kwok Email: ir@perfectmedical.com Tel: (852) 2770 2099	Callis Lau / Tina Law / Rita Chen Email: perfectmedical@iprogilvy.com Tel: (852) 2136 6185

A resilient and sustainable growth with increase in profitability in consecutive years

Perfect Medical Health Management Limited (the Company, HKG: 1830), one of the largest aesthetic medical operators in the world, together with its subsidiaries (collectively referred to the Group), is pleased to announce its interim results for the six months ended 30 September 2023.

RESULTS HIGHLIGHTS

• The Group’s revenue increased by 7.5% to HK$718.1 million, thanks to the momentum growth in revenue in Hong Kong and mainland China amid the abatement of the pandemic in early 2023.
• The Group’s EBITDA increased by 5.4% to HK$242.1 million.
• The Group’s net profit increased by 10.4% to HK$166.4 million, representing a net profit margin of 23.2%. Basic earnings per share were HK13.2 cents. If excluding the one-off government subsidies in the last financial period, the adjusted net profit after tax increased by 27.1%.
• The Board recommends the payment of an interim dividend of HK13.2 cents and a special dividend of HK1.0 cents per share to shareholders.
• The Group operated a total service area of 297,000 square feet in Hong Kong, mainland China, Macau, Australia and Singapore, with an addition of two shops in Hong Kong during the period.

For the period under review, the Group achieved satisfactory results thanks to the meaningful return of new customers and the solid relationship with the loyal customers in both Hong Kong and mainland China. The Group’s revenue increased by 7.5% year-on-year to HK$718.1 million (FY2022/23 interim: HK$668.3 million). The Group’s EBITDA increased by 5.4% year-on-year to HK$242.1 million (FY2022/23 interim: HK$229.7 million). Profit attributable to equity holders of the Company was HK$166.4 million, increased by 10.4% year-on-year (FY2022/23 interim: HK$150.7 million), representing an increase of 0.7 percentage points in net profit margin to 23.2% for the period (FY2022/23 interim: 22.5%). Basic earnings per share were HK13.2 cents (FY2022/23 interim: HK12.1 cents).

As of 30 September 2023, the Group operated a total service area of 297,000 square feet in Hong Kong, mainland China and overseas.

Hong Kong OperationRevenue from Hong Kong operation increased by 11.6% year-on-year to HK$549.6 million (FY2022/23 interim: HK$492.4 million), overtaking the revenue of Hong Kong operation before pandemic in FY2019/20 interim by 7.2%, thanks to the improvement in shop utilisation and the contribution from the newly established residential shops in Hong Kong. The recovery of revenue to beyond the FY2019/20 interim level demonstrates the Group’s success in recalibrating its business operation. Currently, revenue from Hong Kong operation accounted for 76.5% of the Group’s revenue (FY2022/23 interim: 73.7%).

As of 30 September 2023, the Group had a well-established network of service centres in Hong Kong covering a total service area of 192,000 square feet, with an increase of two shops in Tsuen Wan and Taikoo during the period.

During the period, the Group witnessed a strong demand for its core aesthetic medical services thanks to the unwavering support by its loyal customers. The Group has recalibrated its business model to further expand its geographical reach in Hong Kong through the introduction of residential shops in medium-to-high end shopping malls and residential locations. As for the core mega shops, the Group saw a welcoming response to the medical tourism flagship centres in Causeway Bay and Tsim Sha Tsui where there was intense demand for its premium medical beauty services by the cross-border customers.

At its non-aesthetic medical business, it includes a range of supplementary healthcare management services, including hair growth treatment, pain treatment, health screening service as well as other beauty and wellness services, to fully collaborate with our aesthetic medical services. During the period, the Group enhanced the cross-selling to the medical business following the improvement in our aesthetic medical business.

Regions outside Hong KongRevenue from regions outside Hong Kong decreased by 4.2% year-on-year to HK$168.5 million (FY2022/23 interim: HK$175.9 million), impacted by the lower demand in Singapore and Australia but compensated by the recovery in mainland China. Currently, revenue from the regions outside Hong Kong accounted for 23.5% of the Group’s revenue (FY2022/23 interim: 26.3%).

For the period under review, operating profit in mainland China and Macau improved year-on-year thanks to the gradual recovery in customers’ demand and the absence of business suspension in this financial period. As of 30 September 2023, the Group had a network of 22 shops in strategic locations in mainland China and Macau. In the first half of this financial year, the performance of the Australia and Singapore operation was impacted by the sustained inflationary environment and the high living expenses in both countries. It may take some time for the international market to recover.

ProspectsDr. Au-Yeung Kong, the executive director, chairman and chief executive officer of Perfect Medical, said that “The promising business performance in the first half of the financial year has demonstrated our superior business model can withstand poor market conditions. We remained steadfast in our core strategy of ‘Healthcare + Medical Beauty’ to satisfy the individual needs of the consumers.

As the demand generally bounced back after the three-year pandemic, the rebound in tourist arrivals in Hong Kong this year will bring along additional cross-border customers to the Group, which will reinforce the Group’s determination to become the most favourable aesthetic medical service centres in the Greater Bay Area in the long run.

In mainland China, we will closely monitor the market dynamics and economic landscape to better prepare for the economic fluctuation. We spare no effort in optimising our business operation to improve shop productivity to fully capitalise on the rebound in foot traffic at shopping malls. As for the international market, we will proceed with its business development in a prudent and steady manner with relentless dedication to customer satisfaction.”

For further information of the Group’s FY2023/24 interim results, please refer to the Company’s Interim Results Announcement on the Hong Kong Stock Exchange website at: https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1124/2023112400233.pdf

About Perfect Medical Health Management LimitedPerfect Medical Health Management Limited is a multinational aesthetic medical corporate and one of the largest aesthetic medical operators in the world established in 2003. The Group focuses primarily on non-invasive aesthetic medical services and medical services in Hong Kong, China, Macau, Australia and Singapore with a total service area spanning approximately 297,000 square feet as of 30 September 2023. Its operation offers a broad spectrum of professional services with assurance of utmost safety and efficacy. The Company was included as a constituent stock of the MSCI Hong Kong Small Cap Index on 27 May 2021, demonstrating the confidence from the capital market and recognising the investment value of the Company.

For further information, please contact:Perfect Medical Health Management LimitedMarco So / Peter KwokEmail: ir@perfectmedical.comTel: (852) 2770 2099

iPR Ogilvy LimitedCallis Lau / Tina Law / Rita ChenEmail: perfectmedical@iprogilvy.comTel: (852) 2136 6185