China's So-Young Q4 revenue rises on branded center expansion

Overview

• China aesthetic treatment platform's Q4 revenue grew 25% yr/yr, driven by branded center expansion

• Q4 net loss narrowed sharply from prior yr, but non-GAAP net loss increased

• Company extended share repurchase program through March 2027, repurchased 4.8 mln ADSs

Outlook

• So-Young expects Q1 2026 aesthetic treatment services revenue of RMB268 mln to RMB278 mln

• Company says outlook reflects current market conditions and preliminary estimates of customer demand

• So-Young plans steady store expansion and prioritizes operational excellence in 2026

Result Drivers

• AESTHETIC CENTER EXPANSION - Revenue growth in Q4 was primarily driven by business expansion of branded aesthetic centers

• DECLINE IN PLATFORM SERVICES - Revenues from information and reservation services and medical products fell due to fewer medical service providers subscribing and lower equipment sales

• HIGHER SALES AND MARKETING SPEND - Increased sales and marketing expenses were mainly due to branding and user acquisition activities for the branded aesthetic centers

Company press release: ID:nPn2zc0y8a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for So-Young International Inc is $7.60, about 161.2% above its March 24 closing price of $2.91

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