After the listing of Medical Beauty International, the stock price will be as cool as the new oxygen?
Editor’s note: This article is from WeChat public account “American Stock Research Institute” (ID: Meigushe), author of the US Stock Research Institute.
In the era of Yan value economy, more and more users are willing to pay for the US. Aimei is not only exclusive to female users, but also male users pay more attention to the image of Yan value. Among them, micro-shaping has become the most investment-oriented project for users. Under the market demand, the pace of listing of domestic medical and beauty companies is also accelerating.
In the first half of this year, the first new oxygen in the domestic Internet took the lead in launching the first shot of Internet medical beauty. After the new oxygen, another giant in the medical and aesthetic industry released the information on the market. On October 17, Medical Beauty International was released by the media and has updated the Red Herring Prospectus and has launched a roadshow. It is expected to be listed on NASDAQ on October 25.
As the third largest private beauty medical service provider in China, Medical Beauty International has always had a listing plan. It was planned to go public in Hong Kong five years ago but it eventually failed. This time, it will be listed again. Listing should be considered a must. Only after the first IPO of the Internet was listed, the stock price staged a “bashing street”, which fell a lot compared with the listing. It is inevitable that the outside world is also worried about the follow-up trend of the company’s stock price.
Behind the glamorous beauty of the medical beauty industry, it is too difficult for medical and beauty institutions to get a good reputation. For Medical Beauty International, can it not follow the new “oxygen” after listing? In the fiercely competitive medical and beauty industry, how can Medical Beauty International stand out from the crowd?
The expansion of the debt-to-debt rate remains high, and the company has relied on the listing to ease the pressure on funds
As a senior medical and beauty institution in China, Medical Beauty International should be regarded as a predecessor in the industry. There are many physical stores under the Internet to become important contributors to its revenue. At present, Medical Beauty International has been established for 22 years. As of October 15, Medical Beauty International has 21 treatment centers, 19 of which are wholly-owned or occupying more shares. These treatment centers are located in 15 cities including China, Hong Kong and Singapore.
PractitionerIn terms of the number of treatment centers under the US International Online, the number of newly-built medical centers in the past two years is much faster. Overall, in the 30-month period, there are 11 new medical centers in the United States. Behind the rapid expansion of Medical Beauty International, this has also kept its revenue growth at a good rate.
According to financial data, in the first half of 2016, 2017, 2018 and 2019, the operating income of Medical Beauty International was 5.84, 6.97, 7.61, 393 million, and the compound annual growth rate of revenue during 2016-2018 was 14.15%. . In terms of income sources, surgical beauty treatment services, non-surgical beauty treatment services, and general medical care and other beauty services, including the three major medical services. Judging from the proportion of the three businesses in the picture below, the beauty treatment service income is the top income of the medical beauty international.
Image Source: Huasheng Securities
This shows that scaling up online can bring significant revenue growth to Medical Beauty International. Although the expansion can bring the data on the revenue bright, but it is also a double-edged sword, it is a test of the reserves of medical beauty in the fund.
Compared with the online medical beauty platform, offline medical institutions have heavy assets, so the cost of investing in this area is also high. Although we can increase revenue after the rapid expansion of Medical Beauty International, we also see that the debt ratio it faces is also increasing. Rapid expansion tests the cash flow of Medical Beauty International, and the demand for funds is large. According to the data of the past three years, the debt of Medical Beauty International is still at a high level. The asset-liability ratios in the first half of 2017-2019 are 103.85%, 136.86% and 115.73% respectively.
Medical International Funding Financing still received $15 million in Series A financing in 2011. After expansion, high debt is an important reason for Medical International to go to the US IPO. After the successful listing, the company’s financial pressure Will get a certain degree of relief.
High customer cost affects net profit, and medical beauty and new oxygen are difficult to escape the common problem
Although the medical and aesthetic industry is still developing very fast, it does not mean that medical and beauty companies have no pressure on profitability. Earlier, some insiders revealed that at present, the proportion of profit-making institutions in the market, flat or in the development period is still unprofitable, and the proportion of loss-making institutions accounts for one-third.
The roots of the United States and the United States in the marketing cost data, since 2017, the United States and the United States marketing costs accounted for more than 40% of the income. For the third consecutive year, there are more than 40% of the marketing expenditures. This shows that it is difficult for Medical Beauty International to effectively control the expenditures in this part. Once the marketing expenses remain high, this will directly affect the net profit of Medical Beauty International.
According to the prospectus of Medical Beauty International, it lost 72.43 million yuan and 253 million in 2017-2018 respectively. 2016-2018, adjusted EBITDA (profit before interest, taxes, depreciation and amortization) were 96.06 million, 112.1 million, and 113.1 million yuan respectively. In the first half of this year, the group’s profit was 80.2 million yuan, a year-on-year increase of 374%.
Although the user’s investment in medical beauty has increased, it is still a big expense for CAM International to get more new customers’ investment in advertising and marketing, which has become a big problem for its future development. . Of course, the cost of obtaining customers is high, which is not a problem faced by Medical Beauty International. The same is true for new oxygen that has already been listed.
It is reported that the average customer cost of medical and beauty institutions is 6000-8000 yuan. According to the new oxygen prospectus, its marketing expenses are 300 million yuan in 2018. From 2017 to 2018, monthly active users will increase 400,000 yuan. The number of paying users increased by 160,000. The average cost per active user is 750 yuan, and the cost of acquiring each paying user is 1,800 yuan. Although there is still a lot of absolute space for the user acquisition cost of the medical institution of 6,000 yuan, it has already accounted for 1/3 of the cost of institutional users.
Either the online Internet medical beauty platform or the offline medical and beauty institutions, without exception, they face high customer acquisition costs, which has become a factor affecting their net profit growth. What kind of reason is that the medical high cost and new oxygen have the problem of high customer cost?
1. The level of medical and aesthetic industry is uneven, and it is a powerful way for head companies to get high-exposure ads
In China, the medical and beauty industry is always experiencing various problems, of which the medical and aesthetic problems are the biggest pain points. For users, it is not easy for them to find a suitable platform for medical beauty. On the one hand, there is a big splash in price, and low prices will attract more users. On the other hand, the qualification of medical institutions is very high. It is difficult to judge from the root. Some medical and aesthetic enterprises have problems affecting consumers’ trust in the domestic medical and beauty industry.
For doctorsFor American companies, their access to channels can be roughly classified into three categories: one is promotion, that is, the promotion of products and brands by medical and beauty institutions, and the development of customers through advertising in the media and third-party platforms; It is a personal connection, has its own channels and resources, and is recommended by means of the customer; the last one is a small private organization, they do not need the help of advertising, relying on the fixed consumer groups accumulated by doctors.
The promotion of advertising should be considered the most used, which is the most comprehensive way to attract users. Many medical institutions have increased their investment in advertising marketing to a certain extent. It also increased the increase in marketing expenses. This is why it is often possible to see advertisements for medical and beauty companies in elevators, bus stations, and video websites. Under the competitive situation that the medical and beauty enterprises with certain strength are increasing their advertising and marketing, it is naturally difficult for the head enterprises to reduce this part. Expenditure.
2, it is more difficult for the medical and beauty industry to get customers to stay, which makes it more difficult for medical and beauty companies to acquire new customers
The medical beauty industry is difficult to make customers have high-frequency consumption behavior, although more and more customers are willing to pay for their own image, but many times customers are in a one-off business It is difficult to retain customers if they consume. Some people in the industry have frankly said: “In the face of consumers who have spent a lot of money, many medical institutions have the urge to over-consume and make quick money. The irregular operation has resulted in a vicious whole industry. Loop.”
It can be seen from this phenomenon that many medical and aesthetic enterprises pursue the immediate interests and damage the healthy and stable development of the industry. If the medical and beauty enterprises can not retain the previous customers, it is only necessary to explore the cost of new customer input. increase. It can be said that the medical and aesthetic industry is not only difficult to obtain customers, but also more difficult to stay in, which further aggravates the difficulty of obtaining medical and aesthetic enterprises. From 2016-2018, among the current customers of Medical Beauty International, repeat customers are over 50%. Although the share of medical beauty in the United States is OK, but to further expand new customers, but as a traditional medical institutions, it has a single channel.
For Medical Beauty International, the listing will not only enable it to obtain a fund to alleviate the high debt ratio, but also help it to open up some competition gaps with its peers. In the era of economic value, the head enterprises still Have the potential to gain more development opportunities.
The value of the economic era is welcoming a new round of outbreaks, and the head of the medical and beauty industry will receive more bonuses
A few years ago, domestic consumers who went to South Korea for cosmetic surgery became a growth point in the Korean plastic surgery economy. According to Ai Media Consulting data, among women aged 18-40, the penetration rate of Chinese medical users is 7.4%, and that of South Korea is 42.0%. There is a gap of nearly 6 times between the two. From this data, on the one hand, we can see the maturity of the Korean cosmetic economy industry, and on the other hand, it shows that there is still a lot of room for development in the domestic medical and beauty industry.
From the perspective of market size, the development of the domestic medical and beauty industry is fast and fast. In 2017, China’s medical beauty market exceeded 176 billion yuan. From the perspective of income, China has become the world’s third largest medical beauty market after the United States and Brazil. According to ISAPS, by 2020, China’s medical and beauty market is expected to reach 315 billion yuan. According to Frost & Sullivan’s data, the scale of China’s medical and beauty market has increased from 52.1 billion yuan to 121.7 billion yuan in 2014-2018, with a compound annual growth rate of 23.6%.
At present, the investment of users in the pursuit of beauty and medical beauty is still improving. Although the current penetration rate is not high, it is actually a way for domestic medical companies to improve their revenue growth. Help. With the user’s view of medical beauty from colored glasses, and now slowly accepted, the change of user concept will also become the driving force for the development of medical and beauty enterprises. In the future, the head enterprises in the medical and beauty market will still have greater development potential.
On the one hand, there are already many physical treatment centers under the medical beauty international online, which already has a certain popularity in the industry, which is beneficial to its acquisition of users’ choice of brands at the customer level; on the other hand, the strength is stronger. The head enterprises, they will still have a competitive advantage in terms of technology and services, and this factor has become a very important factor affecting customer choice. Therefore, in the future, companies like the United States and the United States should further improve the competitiveness of enterprises, and how to highlight their own advantages is critical.
Medical International has restarted its listing plan for the second time. This time it is really crucial for it to go public in the US. Some of the core data disclosed are still performing well. It is very likely that there will be a break on the first day of listing. Sex. For Medical Beauty International, if you want to keep the stock price up, you still have to have the hard power to gain the recognition of investors. How to further improve the core competitiveness of the company in the future is very important.