Detailed narrative
Structural Reforms and Reacceleration
SBC Medical Group Holdings completed structural reforms initiated in 2025, leading to a reacceleration of growth in Q2 FY26. The company reported profit growth outpacing revenue growth, driven by an expanding business base and sophisticated support functions, particularly AI. Management emphasized that renewed marketing methods, fee structures, and treatment offerings contributed to overcoming fierce competition in the Japanese aesthetic medicine market.
Multi-Brand Aesthetic Strategy
The company is accelerating its multi-brand strategy in aesthetic dermatology to cater to diverse customer needs. This includes renaming Shonan Aesthetic Dermatology to SBC Skin Clinic to lower entry barriers, and expanding high-value brands like NEO Skin Clinic (adding 3 locations for a total of 4) and JUN CLINIC (adding 1 for a total of 7). New formats like THE LASER and SBC MEN'S FLASH are being launched to address specific demands in men's aesthetics and hair removal, contributing to a 19% year-on-year growth in first-half transaction value for Gorilla Clinic.
Non-Aesthetic Business Expansion
SBC positions non-aesthetic healthcare as its second growth engine, aiming for longevity. While the transaction value mix is currently 84% aesthetic and 16% non-aesthetic, the company sees significant potential upside. A dedicated team was established in June 2026 to strengthen customer acquisition and medical management, focusing on increasing utilization and revenue per clinic, alongside M&A for location expansion in areas like orthopedics, ophthalmology, and fertility treatment.
Global Expansion Initiatives
Global expansion is built on a stable earnings base in Japan. In the US, SBC is collaborating with OrangeTwist, in which it took a minority stake in December 2025, sharing operating know-how and expanding service menus across its 24 locations. In Southeast Asia, SBC is exporting an asset-light 'powered by SBC' model, starting with BLEZ CLINIC in Thailand, where local partners provide capital and operations while SBC supplies procurement, standardization, training, and patient acquisition for recurring fees.
AI as a Foundational Strategy
AI is a core strategy for both growth and efficiency, leveraging over 26 years of accumulated management data. AI deployments include a chatbot for inquiries, an AI interpreter (Talk Bridge), marketing AI, and a call center AI scheduled for release in 2026. These initiatives aim to enhance customer experience, improve marketing, and support network expansion through site candidate recommendation AI and knowledge sharing AI, ultimately increasing the average fee per clinic (AFPC) and supporting profitability.
Capital and IR Strategy
SBC's capital strategy focuses on EPS growth and valuation normalization, backed by ample cash for organic growth and disciplined M&A. The company acknowledges limited capital market recognition, particularly in the US, but notes rapid shareholder base growth (4.7x year-on-year as of July 2026). Active participation in IR conferences and year-round investor engagement are planned to expand analyst coverage and enhance shareholder value.
Longevity Vision and Future Growth
The company's long-term vision is to be a 'longevity company,' helping people live healthy and vibrant lives. This includes expanding into non-aesthetic areas like orthopedics, ophthalmology, and fertility treatment, with a target of 1,000 clinics by 2035. The proportion of aesthetic healthcare is expected to decrease over 10 years as other categories grow. A longevity center and online platform are planned for 2027 to solidify this branding.