Perfect Medical Announces Annual Results for FY2023/24

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.

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