While we may say that beauty is in the eye of the beholder, some of us may wish to alter some part of our appearance to look closer to our ideal version. Looking good doesn’t just affect our self-confidence; it may also have implications for societal acceptance and professional success. As such, aesthetic medical centres have become integral for individuals seeking to enhance their natural beauty and address cosmetic concerns.
One notable player in this field is Beverly JCG (SGX Code: VFP), which owns the Beverly Wilshire group of companies in Malaysia. Listed initially on the Catalist board of the Singapore Exchange in April 2005 as JCG Investment Holdings, it was renamed Beverly JCG on July 2020 following its acquisition of a 51% stake in the Beverly Wilshire Medical Centre group of companies in 2019.
With its two Ministry of Health-licensed medical centres and six Licenced Clinics across Kuala Lumpur, Klang Valley, Johor Bahru, and Ipoh in Malaysia, the Beverly Wilshire integrated beauty and wellness medical centres offer a wide range of services to both men and women. This includes specialising in aesthetic medicine, plastic surgery, dental aesthetics, hair restoration, and a range of healthy ageing and wellness services.
Beyond its presence in Malaysia, the company intends to expand its “Beverly” brand to neighbouring countries like Singapore, Indonesia, Vietnam, and China. Here are 5 things to know about Beverly JCG if you’re interested in the plastic and aesthetic medicine market.
Describe Beverly JCG’s main business segments and revenue drivers
Beverly JCG operates in two main business segments:
The aesthetic medical and healthcare segment serves as the core focus of Beverly JCG. With two medical centres and six clinics located across Kuala Lumpur, Klang Valley, Johor Bahru and Ipoh in Malaysia, the Group offers a comprehensive range of both invasive and non-invasive treatments. Backed by a team of 24 professional doctors specialising in various fields, Beverly JCG provides cosmetic surgery procedures (e.g. facelifts, eyelid surgery (blepharoplasty) and breast augmentation) as well as aesthetic medical treatments (e.g. fat reduction, Botox injections and hair loss treatment).
The trading and distribution segment represents Beverly JCG’s legacy business. This segment focuses on trading and distributing of steel raw materials, consumables, instruments, and semi-finished products to steel mills, iron and steel foundries, and aluminium smelters in the Asia-Pacific region. The Group also provides ancillary services to support clients’ specific requirements.
The primary revenue driver for Beverly JCG is the aesthetic medical and healthcare segment, which contributed 96% of the Group’s FY2022 revenue. In FY2022, the aesthetic medical and healthcare segment generated revenue of S$10.07 million, representing a 14% year-on-year increase. The trading and distribution segment generated revenue of S$0.44 million, a notable 154% year-on-year increase.
What are some of the Group’s potential catalysts that investors can be excited about in the near term of 1 to 2 years?
One significant development is the Group’s proposal, announced on 4th April 2023, to acquire the remaining 49% of the BW Entities and achieve full ownership of Beverly Bangsar Sdn Bhd, a subsidiary of BW Entities. The acquisition would approximately double the Group’s revenue and enhance its cash flow from operations.
Furthermore, the Group has intentions to pursue M&A with synergistic companies. These strategic M&A activities are aimed at expanding the Group’s presence and diversifying its product and services suite in Malaysia and Singapore. By capitalising on the increasing demand for aesthetics and healthcare services in both Malaysia and Singapore, the Group aims to strengthen its market position and capture new growth opportunities.
To what extent is the Group capitalising on new norms and trends that could be game-changers for it in the future?
The Group recognises the potential game-changing impact of new norms and trends in the cosmetic surgery industry. With the rise of promoting plastic and cosmetic surgery on social media through celebrities, the Group has proactively capitalised on these trends. They have strategically promoted their Doctors and Surgeons on their websites, social media platforms, and various forums to increase visibility of their suite of services and highlight the capabilities of their medical team. In addition, the Group has formed partnerships with social media influencers to drive traffic and enhance brand awareness.
The BW Entities, in particular, has strategically positioned their medical centres, salons and clinics in areas that are easily accessible for medical tourists and the local residents in the vicinity. This approach takes advantage of the growing demand for aesthetic medicine and ensures that the Group is well-positioned to cater to both domestic and international clientele.
Describe ESG factors that are material to Beverly JCG and how will that create long-term value for your stakeholders?
Two key material ESG factors for the company are “Anti-Corruption” and “Diversity and Fair Employment”.
Anti-corruption: Beverly JCG actively promotes ethical business conduct and strictly prohibits bribery or corruption in any form. The Group has implemented comprehensive policies and procedures, including a whistleblowing system. By maintaining a zero-tolerance approach towards corruption, Beverly JCG safeguards its integrity, protects stakeholder interests, and reduces legal and reputational risks. This contributes to the long-term value of stakeholders by fostering a culture of trust, transparency, and responsible business practices.
Diversity and fair employment: The Group recognises the importance of diverse perspectives and believes in providing equal opportunities for all employees. It actively promotes fair treatment, equal opportunities, and non-discrimination within its workforce. Beverly JCG also aims to maintain a diverse board composition and believes it to be a means to enhance overall performance and decision-making process. By valuing and fostering diversity, the company creates an inclusive work environment that attracts and retains top talent, encourages innovation, and better serves the needs of its diverse customer base.
Why should investors take a closer look at Beverly JCG?
Despite the challenges brought about by the COVID-19 pandemic, Beverly JCG has successfully recovered to its pre-pandemic levels. The BW Entities has also swiftly shifted into recovery mode and overcame challenges associated with declined revenue from foreign clients.
Having regained stability in 2022, Beverly JCG has set in motion its long-term strategic plans to provide sustainable value to its stakeholders in the aesthetic medical and healthcare business. The Group focuses on both organic and inorganic growth, aiming to expand its range of products and services and enter the Singapore market.
Under the leadership of experienced business veteran Dato’ Ng Tian Sang as the Group Chief Executive Officer, Beverly JCG is executing a series of corporate actions to enhance its performance. These initiatives include implementing cost management strategies, debt restructuring, as well as M&A activities. By expanding its products and services offerings and entering new markets like Singapore, the Group aims to accelerate growth and strengthen its market position.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 14 June 2023 and have been republished with permission. You can read more on Beverly JCG on the SGX website.