KUALA LUMPUR: DC Healthcare Holdings Bhd is set to capitalise on the increasing market size of the aesthetic medicine industry in the country which is projected to reach RM1.0 billion in 2027, according to CGS-CIMB Research.
The research firm said the company has already attained 11.1 per cent of the market share based on its revenue reported in 2022 (FY22) which is a 7 per cent increase from posted in 2021.
CGS-CIMB Research said among key competitive advantages of the DC Healthcare are the already established brand with seven years of track record under the brand name of 'Dr Chong Clinic'.
Apart from that, services within the company are supported by modern medical equipment.
In addition to its 13 existing branches, DC Healthcare is seeking to set up eight new aesthetic medical clinics that comprises two in Johor, two in the central region and four in the northern region.
91 per cent of FY22 sales were generated from the central region that comprises 10 clinics while the remaining was contributed by the only clinic in the Southern region, Johor Bahru.
"The average timeframe for a new aesthetic medical clinic to be operational ranges from 6 to 9 months and the expansion plan is expected for completion by 2024," it said.
The company is also looking into hiring another six letter of credentialing and privileging (LCP) certified aesthetic physicians and 16 resident medical doctors to support the potential growth in customer base and numbers of treatments and services.
Additionally, CGS-CIMB Research said DC Healthcare have also registered contract liabilities worth RM2.9 million which is equivalent to 6.0 per cent of sales in FY22 and it is projected to be recognised progressively in the next financial year.
In FY22, the company's net profit soared more than double year-on-year (YoY) to RM9.6 million underpinned by strong sales growth on the backs of increased number of treatments served with addition of five clinics in the central region.
"Average selling price per treatment also rose to RM480 increased by 29 per cent YoY in FY22 gross profit margin climbed 1.5 per cent points YoY to 56.2 per cent in FY22 as higher sales from the aesthetic services more than offset the increase in staff costs," it said.
CGS-CIMB said the company is aiming for listing on the Bursa Ace Market on July 17, 2023 with a target market capitalisation of RM249.1 million and the final day for initial public offering (IPO) application will be on July 5, 2023.
"With the IPO, the group will raise total proceeds of RM49.8 million where RM17 million or 34 per cent of total proceeds allocated for working capital, RM13 million or 26 per cent for purchase of new medical machines and equipment, RM9 million or 19 per cent to set up new aesthetic medical clinics, RM6 million or 13 per cent to repay borrowings, and RM4 million or 8 per cent for listing expenses.
