Beverly JCG, a reputable brand in Malaysia with multi award-winning integrated beauty and wellness medical centres, has announced its 3Q FY2023 results on 10 Nov 2023.
The aesthetics healthcare stock has embarked on recent acquisitions to lay the groundwork to develop into a key aesthetic medicine and healthcare services provider in the region.
Here are 5 things investors need to know about Beverly JCG below.
1. Strategic Transformation on track via Multiple Acquisitions
Formerly known as JCG Investment Holdings Ltd, the Group acquired 51% of the Beverly Wilshire Medical Centre Group of Companies, a well-known brand in Malaysia with multi award-winning integrated beauty and wellness medical centres in November 2019.
BW operates two Malaysia Ministry of Health (“MOH”) licensed medical centres and six licensed clinics across Kuala Lumpur, Klang Valley, Johor Bahru and Ipoh in Malaysia.
It specialises in providing a range of healthy aging and wellness services including plastic surgery, dental aesthetics, hair restoration and aesthetic medicine.
Subsequently, the Group proceeded to obtain 70% ownership of BK Hospital in Singapore for a transfer value of S$0.56 million via a share swap at S$0.0011 per share.
For some context, BK Hospital, established by the renowned South Korean cosmetic surgeon Dr. Kim Byung Gun, is located within the 100AM Mall in Tanjong Pagar. The clinic is strategically positioned facing Amara Hotel Plaza and marks the Group’s first foray into Singapore’s thriving aesthetic and healthcare sector.
This move underscores the Group’s commitment to not only accelerate growth, but also become a prominent player in the Asia-Pacific aesthetics medicine and healthcare industry.
During the third quarter ending 30 September 2023 (“3Q FY2023”), the Group reported a revenue of S$1.79 million, down 42% compared to S$3.12 million last year.
The steep decline in revenue can be primarily attributed to a decrease in revenue from its Natasha group entities and Beverly Dentistree Sdn Bhd where the Group has altered the business model for its Natasha Group to reduce operating costs and expenses.
The Group has also engaged third parties in a bid to increase rental income and revenue share to generate net income instead.
3. Strengthening its Financial Position
As part of the Company’s strategic plan to raise funds for profitable acquisitions and expand its presence in the healthcare and wellness industry, the Group has proposed the following corporate actions:
(i) Share Consolidation: The Company will conduct a share consolidation exercise, consolidating every 50 ordinary shares (the “Shares”) into 1 ordinary share (the “Consolidated Share”).
(ii) Rights Cum Warrants Issue: Upon completion of the share consolidation, the Company will initiate a renounceable non-underwritten rights cum warrants issue offering:
- 1 Rights share for every 3 Consolidated Shares at an issue price of S$0.035 per Rights Share, adjusted based on the theoretical price post consolidation;
- Free detachable warrants in the capital of the Company (the “Rights Warrants”) with an exercise price of S$0.051 on the basis of 1 Warrant for every 1 Rights Share subscribed
Assuming a 100% subscription rate scenario for the proposed rights issue, the Group will obtain net proceeds of an estimated S$7.5 million. This amount can be used to improve its overall financial stability, aid Beverly JCG to continue operating without (going concern) issues and support future M&A expansion plans.
4. CEO Highlights Significant Leap, Promising Outlook
Looking forward, the management team maintains a positive outlook on the potential growth within the aesthetics and cosmetic medicine sector, underpinned by an estimated Compound Annual Growth Rate (“CAGR”) of 14.7%. This growth trajectory is expected to propel the industry from US$127.1 billion in 2022 to a projected US$332.1 billion by 2030.
With that in mind, Dato’ Ng Tian Sang, Deputy Chairman and Group CEO has this to say:
“Our recent venture into Singapore represents a significant leap forward in our journey to redefine Asia’s aesthetic medicine and healthcare industry. This strategic move not only bolsters our presence in the vibrant Singaporean aesthetics and healthcare sector, but also aligns perfectly with our commitment to excellence.
Our proposed corporate actions are aimed at creating a stronger financial foundation. This positions us to explore further collaborations and acquisitions, growing our Beverly Wilshire brand beyond our current operations in Malaysia into Singapore, and regionally in the ASEAN region. With these actions, we are not just acquiring clinics; we are investing in a brighter, more promising future for our patients and stakeholders alike.”
To wrap up, as the global economy starts to open up again post-Covid, more people will be taking off their masks and heading for more beauty and aesthetic treatments.
This bodes well for Beverly JCG Ltd as it continues to lay the groundwork for the Group to develop into a key aesthetic medicine and healthcare services provider in the region.