Yonghe Medical’s first-half profit more than doubles

Hair transplant services provider Yonghe Medical Group Co. Ltd. (2279.HK) said on Wednesday it expects to report a net profit of 70 million yuan ($10.34 million) or more for the six months through June, up at least 150.9% from 27.9 million yuan it reported a year earlier. It said it expects to report its revenue for the six-month period rose 10% or more.

The company attributed the profit growth mainly to the coordinated development of its hair transplant and medical hair care businesses. Revenue from hair transplant services is expected to rise by 10% or more, while revenue from medical hair care services is projected to grow at least 15%. The company also continued to streamline its diagnosis and treatment processes, improve customer conversion efficiency and improve the allocation of medical resources.

Yonghe Medical kept its store count relatively stable during the period and upgraded its self-developed medical management system, Hefan, to strengthen its digital operations and refine management. The efforts improved operations at its existing clinics and helped unlock greater operating leverage. Its gross profit margin is expected to increase by at least 5 percentage points year-on-year.

Yonghe Medical shares opened higher Wednesday and were trading at HK$2.48 by the midday break, up 12.73%.

By Lee Shih Ta

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