So-Young International (SY) AI Stock Analysis

• Market Cap: $400.26M
• Dividend Yield: 0.62%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.39
• Revenue Growth: -5.43%
• EPS Growth: -2022.89%
• Country: US
• Employees: 1,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.06
• Shares Outstanding: 85,093,000
• 10 Day Avg. Volume: 2,319,942
• 30 Day Avg. Volume: 2,180,044
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: -2.87
• 1Y Price Target: $5.50
• Price Target Upside: 36.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $3.50 ▼(-13.15% Downside)

So-Young International's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, and negative cash flows. Technical analysis provides mixed signals, with short-term bearish momentum but longer-term bullish trends. The valuation is weak due to negative earnings, and the earnings call presents a mixed outlook with both growth opportunities and financial challenges.

Positive Factors

Business Expansion

SoYoung Clinic has quickly expanded with 31 centers in major cities, showcasing its strength in differentiating brand position for quality standardized service and value-for-money mindshare.

Financial Performance

Approximately 80% of aesthetic centers generated positive operating cash flow, demonstrating proven execution for profitable store management.

Valuation

A new SOTP framework better captures various SY’s business at different growth phases, with a target price of US$5.5, emphasizing the unique omni-channel advantage for light medical aesthetic services.

Negative Factors

Competitive Risks

Investment risks include potential price wars on key products, competitors’ subsidies, fluctuating supply chain capabilities, and increasing customer acquisition costs.

So-Young International Business Overview & Revenue Model

Company Description

So-Young International Inc. operates an online platform for medical aesthetics and consumption healthcare services focusing on discretionary medical treatments in the People's Republic of China and internationally. Its platform enables users to discover content and share their own experience on medical aesthetics procedures and leads users to reserve treatment services from medical aesthetic service providers for offline treatment. The company facilitates research on medical aesthetic treatment trends; ratings and reviews on treatment experiences; and blogs under the name Beauty Diaries. It also provides reservation services in the areas of dermatology, dentistry and orthodontics, ophthalmology, physical examinations, gynecology, human papilloma virus vaccines, and postnatal care; Software as a Service; and guiding and consulting services through training programs for medical service providers. In addition, the company offers internet information and technology advisory, management consulting, and Internet culture services, as well as sells medical equipment; equipment production, sales, and agency services; and micro finance services. As of December 31, 2021, it had approximately 8,400 medical aesthetic service providers and 5,000 other consumption healthcare service providers on its platform. The company was founded in 2013 and is headquartered in Beijing, China.

How the Company Makes Money

So-Young International generates revenue through multiple streams, primarily from transaction fees, advertising, and membership services. The company earns money by charging clinics and practitioners a fee for each successful appointment made through its platform. Additionally, So-Young monetizes its user base through premium advertising services that allow healthcare providers to promote their services directly to targeted consumers. The company also has strategic partnerships with various clinics and hospitals, which enhance its service offerings and drive additional traffic to its platform. These relationships often lead to exclusive deals or promotions that can further boost revenue. Moreover, So-Young may engage in data analytics services, providing insights to healthcare providers about consumer trends and preferences, adding another layer to its revenue generation strategy.

So-Young International Financial Statement Overview

Summary

So-Young International faces significant challenges with declining revenue and profitability, as evidenced by negative margins and net losses. The balance sheet strength provides some stability with low leverage, but negative cash flows indicate difficulties in sustaining operations without external financing. The company needs strategic adjustments to improve financial performance and cash generation.

Income Statement

The company has experienced a decline in revenue from $1.50 billion in 2023 to $1.47 billion in 2024, indicating a negative revenue growth rate. Gross profit margin remains relatively high at 61.3% for 2024, but net income has deteriorated significantly to a loss of $589.5 million, resulting in a negative net profit margin. EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet remains robust with a strong equity position, as indicated by a high equity ratio of 67.3%. The company maintains a low debt-to-equity ratio of 0.13, reflecting conservative leverage. However, the return on equity is negative due to the net loss, which is a concern for profitability.

Cash Flow

Cash flow performance is concerning with no positive operating cash flow in 2024. Free cash flow has deteriorated from previous years, and there is no positive cash flow to support net income. This raises concerns about the company's ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.47B	1.50B	1.26B	1.69B	1.29B
Gross Profit	844.00M	899.11M	953.69M	864.58M	1.36B	1.08B
EBITDA	-79.54M	-38.39M	-14.96M	-55.72M	63.39M	-42.61M
Net Income	-601.42M	-589.53M	21.28M	-66.11M	-37.64M	5.81M
Balance Sheet
Total Assets	2.64B	2.74B	3.21B	3.20B	3.33B	3.29B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.19B	1.33B	1.57B	1.74B	2.65B
Total Debt	247.26M	239.88M	145.77M	71.26M	105.89M	132.51M
Total Liabilities	743.60M	776.43M	653.25M	590.00M	813.33M	672.44M
Stockholders Equity	1.78B	1.84B	2.44B	2.50B	2.45B	2.60B
Cash Flow
Free Cash Flow	0.00	-88.18M	-28.68M	-128.58M	39.23M	142.22M
Operating Cash Flow	0.00	-25.63M	22.50M	-112.87M	84.29M	179.18M
Investing Cash Flow	0.00	257.04M	-202.61M	-572.21M	339.82M	123.84M
Financing Cash Flow	0.00	-21.51M	-100.02M	-13.59M	-216.74M	-5.80M

So-Young International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SY, the sentiment is Positive. The current price of 4.03 is below the 20-day moving average (MA) of 4.44, above the 50-day MA of 3.93, and above the 200-day MA of 1.63, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 37.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SY.

So-Young International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	69 Neutral	$822.54M	41.70	5.81%	0.44%	3.50%	13.99%
NUTX	67 Neutral	$497.24M	7.52	51.65%	―	141.25%	―
CTEV	54 Neutral	$1.18B	―	-235.47%	―	-2.03%	43.59%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
SY	49 Neutral	$400.26M	17.80	-31.64%	0.62%	-5.43%	-2022.89%
DH	49 Neutral	$568.50M	―	-64.27%	―	-5.24%	23.59%
HCAT	46 Neutral	$235.05M	―	-28.42%	―	5.55%	-0.99%