SBC Medical Group Holdings, Inc. Nasdaq: SBC Flash Report
Global Expansion Proceeds, now into the U.S.: Long-term accomplished founder and management have shepherded SBC from a solo clinic in 2000 to become a global cosmetic treatment center franchiser and cash generation machine with little debt. However, revenue growth has declined in recent quarters yoy (which is expected to persist into early-2026), reflecting increased market competition pressure. Revenue growth has stabilized sequentially in Q3:25, though. Looking through the valley sees the Company growing again in early-2026 with prospects for global M&A in addition to opportunistic Japanese M&A. To that end, the Company has announced a new strategic minority equity investment and collaboration framework with OrangeTwist in the U.S., following a prudent phased global M&A process. Despite strong recent share price recovery, SBC remains heavily undervalued traditionally and via a DCF analysis (especially net of ample Net Cash). We remain bullish with a Buy-Extended rating and a $9.00 price target.
News
➢ SBC announced the completion of a strategic minority equity investment and the establishment of a structured collaboration framework with OrangeTwist, a leading U.S.-based MedSpa chain alongside its longstanding shareholders Hildred Capital and Athyrium Capital. This transaction marks the Company’s entry into the key United States medical aesthetics growth market – major milestone in SBC’s global expansion.
➢ OrangeTwist specializes in non-invasive aesthetic treatments at 24 locations across 6 U.S. states. With strong medical oversight and data-driven clinical operations, the company offers a comprehensive portfolio of injectable, energy-based, and regenerative treatments. Its advanced management system integrating procurement, clinical workflows, and real-time KPI tracking provides operational consistency and supports scalable growth.
➢ This investment marks the beginning of SBC Medical’s full-scale, multi-year, strategic expansion in the U.S. market through a committed partnership with OrangeTwist, and both companies will pursue joint operations that leverage cross-border synergies between the U.S. and Asia to support long-term growth opportunities. Risks
➢ Limited international experience in SE Asia and U.S. markets that are targets for global M&A. That said, SBC’s international expansion follows a 3-phase implementation process: entry, scale, leadership (e.g. partnering with high-performing regional operators, deploying SBC Medical’s differentiated operating expertise, and securing first-mover advantages). This prudent approach bodes well for future profitable growth.
➢ Revenue remains under yoy pressure, but revenue and sequential quarterly operating profit have stabilized. Japanese/global expansion is ongoing. Cash remains strong. Valuation
➢ SBC shares have recovered strongly off ~$3.00/share lows but remain beaten down longer term reflecting concerns about 2025 competitive pressures, though that is likely more than fully reflected in price. Management is also taking steps to improve liquidity.
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Rating Definitions
Buy, 30% or greater price appreciation in the next 12 months.
Buy-Extended, near-term EPS and/or revenue horizon is challenging with strong long-term appreciation possibility.
Buy-Emerging, initial stages with low revenue and the potential for large returns with higher risk and volatility.
Hold, perform similar to market.
Sell, 30% or more decline in the next 12 months.
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