Aesthetic Medical Rises 4% on Strong Fourth Quarter Revenue
Aesthetic Medical International Holdings Group Ltd. (Nasdaq: AIH) rose nearly 4% to $8.92 per American depositary share by midday Friday on reporting strong revenues for the fourth quarter.
The Shenzhen-based company said in a statement today that in the three months through December revenues reached $34.2 million, up 12% year-over-year.
AIH attributed the growth to its non-surgical aesthetic medical services, which soared 28% to $20.6 million. That was due in part to the company's increased efforts to offer cheaper treatments, enhance advertising, and hold promotional events.
Unlike most U.S. listed stocks, AIH has found success recently on Wall Street this year despite the Covid-19 crisis, with shares climbing 39% year-to-date. However, the stock is still down from its IPO issue price of $12 per share when it raised $30 million in its debut in October.
Operating for more than 20 years, AIH provides surgical aesthetic and non-surgical treatments along with other general medical services. With a presence in Hong Kong and Singapore, AIH operates treatment centers spread across major cities in China. The company describes itself as the third-largest private aesthetic medical services provider in China in 2018 in terms of revenues.
Earlier this month, the company acquired majority stakes in two treatment centers including Shanghai Mingyue Aesthetic Medical Co., Ltd., and Xi'an New Pengai Yueji Aesthetic Medical Clinic Co., Ltd.
Despite the positive results today and it's stock performance so far in 2020, the company expects to take a hit in the first quarter, with revenues plummetting 50% year-over-year. However, the company anticipates it should be in a good position going forward as it reopens its aesthetic treatment centers.
"Since late February 2020, we have taken proper precautionary measures and gradually reopened our aesthetic treatment centers. By the end of March, all of our aesthetic treatment centers in China resumed operations," said Zhou Pengwu, the chairman and chief executive officer of AIH, in a statement.
He added, "We will continue monitoring the latest developments and taking appropriate measures in response."