Perfect Medical Health Management (1830) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 declined 13.6% year-over-year to HK$620.3 million, mainly due to reduced demand in Hong Kong and Mainland China and increased outbound tourism impacting local retail spending.

• Profit attributable to equity holders fell 15.4% to HK$140.8 million, with basic EPS at HK11.2 cents.

• The Group maintained a 100.9% dividend payout ratio, declaring interim and special dividends totaling HK11.3 cents per share.

• The Group focused on cost control, expanding its residential shop network, and introducing new service concepts to attract budget-conscious customers.

• The aesthetic medical business contributed 73.3% of total sales, with non-aesthetic medical services supporting growth through offerings like hair growth treatment and sleep therapy.

Financial highlights

• EBITDA decreased 19.9% year-over-year to HK$193.9 million, with an EBITDA margin of 31.3%.

• Operating profit dropped 21.5% to HK$158.5 million, with an operating margin of 25.6%.

• Net profit margin was 22.7%, down from 23.2% a year earlier.

• Net cash generated from operating activities was HK$203.4 million, down from HK$288.0 million in the prior year.

• Bank and cash balance as of 30 September 2024 was HK$479.6 million, with no external bank borrowing.

Outlook and guidance

• Sequential improvement in business fundamentals and customer spending is expected in the coming months, barring unforeseen externalities.

• The "Dual-Circulation" strategy, focusing on both aesthetic and non-aesthetic services, is expected to drive sustainable growth.

• Expansion of premium service offerings and network, including VIP lounges, aims to attract affluent clients and enhance brand loyalty.

• AI-driven customer service tools will be integrated to improve engagement and satisfaction.

• The Group will continue to focus on operational efficiency, prudent cost management, and network expansion.