So-Young International (SY, Financial) has revealed plans to modify the ratio of its American Depositary Shares (ADS) to Class A ordinary shares. The new structure will change from thirteen ADSs representing ten Class A shares to one ADS representing fifteen Class A shares. This adjustment will effectively result in a proportional reverse ADS split for its holders. Importantly, there will be no changes to the Class A ordinary shares themselves.
The revised ADS ratio is scheduled to impact the trading price on Nasdaq starting from the market open on June 30, 2025. ADS holders recorded on this date won't need to take any action, as the transition will happen automatically. Existing ADSs will be canceled, and the depositary bank will issue new ADSs. Trading of the ADSs will continue under the symbol “SY” on Nasdaq.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for So-Young International Inc (SY, Financial) is $0.80 with a high estimate of $0.80 and a low estimate of $0.80. The average target implies an downside of 12.21% from the current price of $0.91. More detailed estimate data can be found on the So-Young International Inc (SY) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, So-Young International Inc's (SY, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for So-Young International Inc (SY, Financial) in one year is $0.91, suggesting a downside of 0.11% from the current price of $0.911. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the So-Young International Inc (SY) Summary page.
SY Key Business Developments
Release Date: May 16, 2025
- Total Revenue: RMB 297.3 million, down 60.6% year over year.
- Net Loss: RMB 33.1 million, compared to a net loss of RMB 21.2 million in the same period last year.
- Non-GAAP Net Loss: RMB 31.5 million.
- Aesthetic Treatment Services Revenue: RMB 98.8 million, up 551.4% year over year.
- Sales of Medical Products and Maintenance Services: RMB 55.6 million, down 35.7% year over year.
- Cost of Revenues: RMB 151.4 million, up 29.1% year over year.
- Total Operating Expenses: RMB 189.3 million, down 20.4% year over year.
- Cash and Cash Equivalents: RMB 1.1 billion as of March 31, 2025.
- Number of So-Young Clinic Centers: 23 centers in 9 major cities.
- Verified Paid Visits: Exceeded 45,500, up 18.5% quarter over quarter and 874.3% year over year.
- Verified Paid Aesthetic Treatments: Surpassed 92,900, up 14% quarter over quarter and 989.4% year over year.
- Customer Satisfaction: 4.98 out of 5.
- Outlook for Q2 2025 Aesthetic Treatment Services Revenue: Expected to be between RMB 120 million and RMB 140 million, representing a 337.3% to 410.1% increase from the same period in 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- So-Young International Inc (SY, Financial) reported a significant increase in aesthetic treatment services revenues, up 551.4% year over year, driven by the expansion of their aesthetic center business.
- The company has successfully opened 23 So-Young clinic centers in 9 major cities, with 18 centers achieving positive monthly operating cash flow.
- Customer satisfaction remains high with a score of 4.98 out of 5, indicating strong service delivery and customer loyalty.
- The company is implementing a franchise model to accelerate geographic reach and network density, reducing CapEx pressure.
- So-Young International Inc (SY) has a robust cash position with cash and cash equivalents totaling RMB1.1 billion as of March 31, 2025.
Negative Points
- Total revenues for the quarter were down 60.6% year over year, primarily due to a decrease in the number of medical service providers subscribing to information services on their platform.
- The company reported a net loss attributable to So-Young International Inc of RMB33.1 million, compared to a net loss of RMB21.2 million during the same period last year.
- Sales of medical products and maintenance services decreased by 35.7% year over year, primarily due to a decrease in order volume for medical equipment.
- Operating expenses were RMB189.3 million, down 20.4% year over year, but still represent a significant cost burden.
- Trade tensions between China and America could impact the company's upstream business, particularly in terms of pricing and sales volume of imported devices.
