By M. Marin
NASDAQ:SBC
READ THE FULL SBC RESEARCH REPORT
International strategy – enter new markets, expand global footprint
SBC Medical Group Holdings (NASDAQ:SBC) provides end-to-end solutions enabling aesthetics clinics to launch, expand and/or operate their businesses. SBC has launched multiple organic growth strategies and also plans to leverage strategic M&A to complement organic measures.
The company’s view is that “the Japanese medical sector has two viable paths for growth: we must either attract more international patients or bring Japanese medical expertise abroad,” and SBC is pursuing both strategies, using a disciplined financial approach. SBC sees international expansion, focused on the U.S. and Southeast Asia, as integral to creating long-term value. By 2027, the company expects to operate a significantly larger global footprint offering diversified medical services, with an emphasis on aesthetic medicine. In the U.S., SBC is exploring growing a MedSpa presence on the West Coast and expanding further within the market through strategic M&A.
Recent International expansion
Last week, SBC completed an equity investment and implemented a collaboration with OrangeTwist, a leading U.S.-based MedSpa chain that operates 24 locations in California, Texas, Washington, Nevada, Colorado, and New Jersey, offering injectable, energy-based, and regenerative treatments, among other services within high-growth categories SBC prioritizes. Healthcare-focused private equity firm Hildred Capital and Athyrium Capital, a specialized asset management company focused on investment opportunities in the global healthcare sector, are also longstanding institutional shareholders in OrangeTwist.
This initiative marks Phase 1 of SBC’s market entry, which envisions three phases (subsequent phases are to respectively attain scale and market leadership). SBC and OrangeTwist plan to jointly pursue joint opportunities that leverage cross-border synergies between the U.S. and Asia. The company’s global expansion strategy rests on three core tenets:
- Partnering with high-performing regional operators with scalable business models
- Deploying SBC’s expertise to drive efficiencies and optimize operating performance
- Securing first-mover advantages, supporting innovation and margin expansion
Earlier expansions into the markets in Thailand and Singapore
In addition, SBC has recently expanded into the markets in Thailand and Singapore. The company acquired AHH, a leading provider in Singapore that operates approximately 20 aesthetic and medical locations, in November 2024. This acquisition marks a key milestone in the company’s expansion strategy, serving as a critical hub for the company’s operations across Asia.
SBC also recently entered into a Consulting Agreement with BLEZ ASIA, which operates 20+ pharmacies and clinics in Thailand to help facilitate its entry into the growing Thai aesthetic medicine market. SBC intends to deliver management support to a new clinic in Bangkok, focusing primarily on dermatological treatments, that is expected to open by year-end. SBC has cited industry research forecasting that the Thai aesthetic medicine market is projected to reach US$1.118 billion by 2033 from an estimated roughly US$372.24 million in 2024.
The company appointed Dr. Ewen Chee to head its expansion strategy in Asia to help the company advance its global expansion strategy. Dr. Chee’s role will be to support physician recruitment and training across the Asia-Pacific region and facilitate SBC’s global strategy. SBC also recently appointed Dr. Steven R. Cohen as Medical Strategy Advisor. Based in California, he has more than 30 years of clinical experience, has published many scientific papers and textbooks, and is also a Clinical Professor at the University of California, San Diego. SBC intends to expand further in existing and potentially additional markets.
Strong balance sheet supports expansion measures
The company conducts its M&A strategy, maintaining a disciplined financial process, and has a solid cash balance and minimum debt. The company ended 3Q25 with cash and equivalents of $127.4 million, compared to $125 million at year-end 2024. This is expected to give SBC the flexibility to pursue strategic growth opportunities. The company intends to allocate available capital to organic and strategic M&A investments in Japan and internationally. SBC’s strategy is to focus on expanding its clinic network, enhancing its technology capabilities, developing new services, and pursuing strategic partnerships or acquisitions to complement and enhance organic growth prospects.
SBC also expects to be strategic in its market selection process as it expands both domestically and internationally, with the intention to launch new clinics in both new and existing markets to reinforce its market position. SBC’s goal is to leverage the expertise it has developed through more than 20 years of operating history in order to expand geographically and into adjacent areas within certain fields.
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