Perfect Medical (01830.HK) Overall business restore the growing momentum Overtaking the pre-pandemic interim revenue in Hong Kong January 2, 2024 228

PSR Recommendation: BUY Status: Maintained
Target Price: HKD5.37

Perfect Medical Health Management (“Perfect Medical”) is a comprehensive medical beauty
and medical healthcare service provider, through integrating and developing its “Medical +
Beauty” operational model, offering customers safe and effective medical services. Perfect
Medical has a presence throughout Hong Kong, China, Australia, Singapore and Macau. The
company principally engages in the provision of providing one-stop “Medical + Beauty”
services and provides a full range of services, including “Medical (Pain Management)”, “hair
growth treatment”, “Gynaecological medical service”, “men’s beauty and weight
management”, “Medical Beauty services” and etc.
Overall business restore the growing momentum, overtaking the pre-pandemic interim
revenue in Hong Kong
In 1HFY2024 (for the six months ended 30 September 2023), Perfect Medical’s revenue
increased by 7.5% to HK$718mn. Profit attributable to equity holders was HK$ 166.4mn,
increased by 10.4% YoY. If excluding the Hong Kong government subsidies, the revised net
profit after tax increased by 27.1%. Basic earnings per share increased by 9.1% to HK13.2
cents. The interim dividend and special dividend are HK13.2 cents and 1.0 cent per share,
with total dividend of HK14.2 cents per share and dividend payout ratio of 107.6%.
For the period under review, the company has proactively reshaped its operations in Hong
Kong, taking advantage of the changing consumer behavior and the relatively affordable
rental situation. By further increased its market penetration in Hong Kong through a
combination of mega shops and the newly established residential shops business model to
tap the demand in the local neighborhood and to further increase its market share. Business
performance was particularly appealing for the residential shops in which company was able
to obtain a high proportion of new customers into its ecosystem. Aesthetic medical business
continued to be the company’s core business for the period, contributing to around 80.7%
as measured by the value of sale contract. The overall average spending per individual client
increased by 16.1% YoY to HK$27,540. Regarding cost control, the employee benefit
expenses increased by 3.3% YoY to HK$238mn, in line with the revenue growth. The
marketing expenses increased by 10.0% YoY to HK$85.5mn, as a result of the resumption of
marketing campaign to boost the brand awareness. The rental lease related expenses
decreased by 4.4% YoY to HK$83.2mn, due to the consolidation of service area in regions
outside Hong Kong YoY. The operating profit margin remained at 28.1%, and the net profit
margin increased of 0.7 percentage points to 23.2%.

About the author

Profile photo of Eric Li

Eric Li
Analyst
Research

李浩然先生(Eric Li) 高級分析師 現任現為輝立証券持牌高級分析師,曾任職股票基金、家族辦公室及證券公司等,擁有多年的證券研究部門從業及投資經驗,並先後於香港最暢銷的財經媒體撰寫投資專欄。畢業於香港理工大學電子計算系。 Eric is currently a licensed research analyst at Phillip Securities. Prior to joining Phillip Securities, he has years of equity research and investment experiences in asset management company, family office and securities company. Meanwhile, he has written investment columns in Hong Kong`s best-selling financial media for years. He holds Bachelor of Arts in Computing from The Hong Kong Polytechnic University.

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