| 山高控股(00412) | 17.400 | 18.080 | 4.15% | | --- | --- | --- | --- | | 百奥家庭互动(02100) | 0.760 | 0.760 | 4.11% | | 华夏比特币(03042) | 15.240 | 15.280 | 4.02% | | ＦＡ南方比特币(03066) | 41.860 | 41.940 | 3.91% | | 金融街物业(01502) | 2.450 | 2.480 | 3.81% | | 博时比特币(03008) | 9.550 | 9.565 | 3.80% | | 环球新材国际(06616) | 5.670 | 5.830 | 3.74% | | 嘉实比特币(03439) | 15.300 | 15.300 | 3.73% | | ＸＬ二南英伟(07788) | 133.650 | 135.800 | 3.66% | | 捷利交易宝(08017) | 1.080 | 1.190 | 3.48% | | 华夏比特币－Ｕ(09042) | 1.936 | 1.930 | 3.43% | | 金界控股(03918) | 4 ...

Group 1 - The company is addressing high operational costs in the industry through internal growth and external acquisitions, solidifying its leading position with advantages in brand strength, channel network, and customer base [1][2] - The major shareholder CPE has successfully exited, leading to an optimized shareholder structure [1] - The company plans to increase its stake in Guangzhou Nairui'er, which, along with the improved liquidity from the optimized shareholder structure, is expected to enhance valuation [1] Group 2 - The company aims to enhance its capital market value with a plan launched in March 2025, focusing on three strategic initiatives: increasing the dividend payout ratio, optimizing the shareholder structure, and implementing a long-term incentive mechanism for management [2] - The company announced plans to further acquire a 20% stake in Guangzhou Nairui'er, increasing its ownership to 90%, which is expected to significantly boost net profit and earnings per share [2] - The company is leveraging its strong brand, channel network, and customer base in the beauty and health management sectors to overcome high operational costs, aiming for further expansion and consolidation of its leading position [2]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has successfully addressed high operational costs in the industry, achieving both organic growth and external acquisitions to solidify its leading position. Its brand strength, channel network, and customer base advantages continue to be validated. Recently, major shareholder CPE has exited, leading to an ongoing optimization of the shareholder structure [2] Financial Summary - Current market capitalization is HKD 6,850 million [3] - Revenue projections show a growth trajectory from RMB 2,145.07 million in 2023 to RMB 3,590.85 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 8.4% [5][7] - Net profit is expected to increase from RMB 215.66 million in 2023 to RMB 417.03 million in 2027, indicating a significant growth rate of 93.4% over the period [5][7] - The company plans to increase its dividend payout ratio to at least 50% of annual net profit from 2025 to 2027, enhancing shareholder returns [6] Earnings Per Share (EPS) Forecast - The EPS estimates have been revised upwards for 2025-2027 to RMB 1.30, RMB 1.43, and RMB 1.77 respectively, reflecting a positive outlook on profitability [6] Shareholder Structure and Strategic Initiatives - The exit of CPE as a major shareholder has led to the introduction of high-quality institutional investors, improving market liquidity and trading activity. The company aims to build a healthier and more diversified shareholder ecosystem [6] - The company is implementing a long-term incentive plan for its core management team, aligning their performance with shareholder value growth [6] Business Model and Market Position - The company is enhancing its stake in Guangzhou Nairui'er by acquiring an additional 20%, increasing its ownership to 90%. This move is expected to significantly boost net profit and earnings per share [6] - The company leverages its strong brand and customer loyalty in the beauty and health management sectors, aiming to overcome high operational costs through a synergistic business model [6]

Core Viewpoint - The company has proposed a capital market value enhancement plan for 2025-2027, focusing on increasing dividend payouts, optimizing shareholder structure, and implementing long-term incentive mechanisms for management [1] Group 1: Capital Market Value Enhancement Plan - The company aims to use no less than 50% of its annual net profit attributable to shareholders for dividends from 2025 to 2027, barring special circumstances [1] - The company plans to attract high-quality long-term institutional investors to improve market liquidity and trading activity [1] - A core management equity incentive plan will be implemented, with performance indicators covering both revenue and profit growth for 2025-2027 [1] Group 2: Shareholder Structure Optimization - As of June 25, 2025, CPE has reached agreements to sell approximately 51 million shares (about 21.77% of total shares), with investors including foreign long-term healthcare funds and leading international hedge funds [1] - The exit of CPE is expected to alleviate upward pressure on the company's stock price and enhance market liquidity through the entry of long-term funds [1] Group 3: Business Growth and M&A Opportunities - The company has shown stable internal growth, with a 14.5% year-on-year increase in rights fees to 510 million yuan and a 9.7% increase in sales to 550 million yuan during the Goddess Festival promotion [1] - The company plans to increase its stake in Nairui by investing 100 million yuan to acquire 20% of its shares, raising its ownership to 90% [1] - The company is positioned to potentially acquire other leading beauty brands to further increase market share and performance [1] Group 4: Profit Forecast - The company has adjusted its profit forecast, expecting net profits attributable to shareholders to be 290 million, 340 million, and 380 million yuan for 2025-2027, representing year-on-year growth of 25%, 17%, and 14% respectively [2] - The corresponding price-to-earnings ratios based on the closing price on July 3 are projected to be 22, 19, and 16 times for the respective years [2]

Company Overview - The original major shareholder CPE has reached a series of agreements to sell approximately 51.329 million shares, representing 21.77% of the company's total issued shares (excluding treasury shares), and will no longer be a major shareholder after the completion of this series of transactions [1][2] - The investors involved in this transaction include foreign long-term healthcare funds, strategic investment funds for technological innovation, leading international long-term funds, and high-quality international hedge funds [1] Comments on Shareholder Structure - The exit of CPE and the introduction of international long-term capital are expected to optimize the shareholder structure and improve market liquidity [2] - The entry of high-quality international investors is anticipated to bring rich industry resources and an international perspective, injecting new momentum into the company's business expansion and innovation [2] Business Performance - For the period from January to May 2025, the company reported a more than 20% year-on-year increase in both equity consumption and net consumption [2] - By business segment, the beauty and wellness sector grew by over 20%, medical beauty increased by 10%, and sub-health medical services surged by over 50% [2] - The integration of the acquired company Nairui is progressing smoothly, which is expected to enhance operational efficiency and improve profit margins [2] Growth Strategy - The company is focusing on a "dual beauty + dual wellness" model for synergistic development, with a positive outlook on growth driven by both internal and external factors [2] - Internally, the company is optimizing single-store operational efficiency and increasing the penetration rate of value-added services [2] - Externally, the successful integration of Nairui is expected to continue expanding membership assets and national layout through acquisitions [2] Management Incentives and Profit Distribution - The company has introduced equity incentives for the management team, with performance targets covering revenue and profit for the next three years [3] - A long-term shareholder return mechanism has been established, with plans to allocate no less than 50% of annual net profit attributable to shareholders for dividends from 2025 to 2027 [3] Profit Forecast and Valuation - The profit forecast for 2025-2026 remains unchanged, with the current stock price corresponding to a P/E ratio of 22x for 2025 and 20x for 2026 based on net profit excluding non-recurring items [3] - The target price has been raised by 68% to HKD 37, corresponding to a P/E ratio of 27x for 2025 and 24x for 2026, indicating a 22% upside potential [3]

Group 1 - CPE plans to sell approximately 51.32 million shares, representing 21.77% of the total share capital, and will no longer be the major shareholder after the transaction [1] - The entry of long-term quality funds is expected to stabilize and improve the company's shareholding structure, with new shareholders including foreign long-term healthcare funds and leading international hedge funds [1] - The company has successfully implemented key strategic measures, including optimizing the shareholder structure, maintaining high dividends (not less than 50% from 2025 to 2027), and continuing long-term incentive mechanisms [1] Group 2 - The company is expected to achieve a net profit of approximately 290 million in 2025, with a year-on-year growth rate of about 27%, corresponding to a valuation of 23x [2] - The integration of the Nairu brand is yielding continuous results, and the health business is experiencing explosive growth, effectively countering the pressure from the medical beauty sector [2] - The exit of CPE is seen as a factor that alleviates previous stock price pressures, contributing to a more favorable outlook for the company's performance [2]

Core Insights - The company has a competitive advantage due to high-quality membership and comprehensive lifecycle management, with traditional beauty services as the foundation and medical beauty and sub-health services extending customer lifecycles, leading to high customer retention [1] - The company is focusing on increasing dividend ratios, optimizing shareholder structure, and implementing long-term incentive mechanisms, which may enhance liquidity and indicate potential for PE valuation recovery [1] - The company has raised its target price and maintains a buy rating [1] Business Performance - In 2024, the beauty and health service revenue reached 1.443 billion, a year-on-year increase of 20.9%, with organic growth of 6%. By the end of 2024, the number of direct and franchise stores reached 239 and 276, respectively, with net new openings of 68 and 77 stores during the year [1] - The company plans to further acquire 20% of Guangzhou Nairui's shares, increasing its stake to 90%, and is expected to continue industry consolidation and business acquisitions to enhance market share and scale effects [1] Medical and Sub-health Services - In 2024, revenue from medical beauty and sub-health services reached 928 million and 201 million, respectively, with year-on-year growth of 9.1% and 98.9%. The penetration rate of beauty members into medical beauty and sub-health services reached 24.9% [2] - The women's special care center generated over 100 million in revenue, with a year-on-year increase of over 300%, accounting for more than 50% of sub-health medical business revenue, and active membership increased by 200% year-on-year [2] Strategic Initiatives - The company is implementing three strategic initiatives to maximize shareholder value: establishing a long-term shareholder return mechanism, attracting quality long-term institutional investors, and implementing a core management equity incentive plan [2] Profit Forecast and Valuation - The company forecasts net profits attributable to shareholders of 315 million, 368 million, and 418 million for 2025-2027, maintaining a strong cash position of nearly 1.4 billion by the end of 2024 [3] - The company is assigned a target price of 37.00 HKD for 2025, based on a 25x PE valuation, reflecting its position as a leading brand in beauty and health and its ongoing initiatives to enhance shareholder value [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 37.00 HKD [8][9]. Core Insights - The company's core competitive advantage lies in high-quality membership and comprehensive lifecycle management, with traditional beauty services as the foundation, complemented by medical beauty and sub-health services to extend customer lifecycles and enhance customer stickiness [1]. - The company is actively increasing its dividend payout ratio, optimizing its shareholder structure, and implementing long-term incentive mechanisms, which may improve liquidity and indicate potential for PE valuation recovery [1]. - The company is expected to continue industry consolidation and business acquisitions to enhance market share and strengthen economies of scale [2]. Financial Performance - The beauty and health services revenue for 2024 is projected to reach 1.443 billion RMB, with a year-on-year growth of 20.9%, and the company plans to increase the number of direct and franchise stores [2]. - Medical beauty and sub-health services revenue for 2024 is expected to reach 928 million RMB and 201 million RMB, respectively, with significant growth rates of 9.1% and 98.9% year-on-year [3]. - The company anticipates net profits for 2025, 2026, and 2027 to be 315.33 million RMB, 367.89 million RMB, and 418.15 million RMB, respectively, indicating a robust growth trajectory [5][20]. Strategic Initiatives - The company has outlined three strategic initiatives aimed at maximizing shareholder value: establishing a long-term shareholder return mechanism, attracting quality long-term institutional investors, and implementing a core management equity incentive plan [4]. - The company aims to allocate no less than 50% of annual net profit attributable to shareholders for dividends from 2025 to 2027, barring special circumstances [4]. Valuation Metrics - The report assigns a PE ratio of 25x for 2025, reflecting the company's position as a leading brand in beauty and health, with a target price of 37.00 HKD based on this valuation [5]. - The company’s cash position is strong, with nearly 1.4 billion RMB at the end of 2024, supporting its stable business development and ongoing market share enhancement [5].

Core Viewpoint - The article emphasizes the importance of appropriate investor management and the need for professional investors to interpret research reports accurately to avoid potential investment losses [1][2]. Group 1 - The research team at Huachuang Securities is positioned to provide insights specifically for professional investors, highlighting the necessity of understanding the context of the reports [2]. - The materials are intended solely for recognized professional investors and should not be used by ordinary investors due to the risk of misinterpretation [2]. - The article notes that the opinions and analyses presented may change without notice based on subsequent reports from Huachuang Securities [2].

Core Viewpoint - The stock price of Beautiful Garden Medical Health (02373.HK) surged by 34.25% on June 4, 2023, reaching a new high of 24.3 HKD per share, driven by positive market sentiment and favorable industry conditions [1][2]. Group 1: Stock Performance - On June 4, 2023, Beautiful Garden Medical Health's stock price increased significantly, closing at 24.3 HKD per share, with a trading volume of 1.6 billion HKD [1]. - The year-to-date increase in the stock price reached 36.52%, surpassing the Hang Seng Index's gain of 17.92% during the same period [1]. Group 2: Market Drivers - The surge in Beautiful Garden Medical Health's stock is attributed to the overall rise in the Hong Kong consumer and medical beauty sectors, with several companies in these sectors hitting historical highs [2]. - The recent boom in the emerging consumer sector is driven by a combination of policy support, holiday effects, and self-care consumption trends [3]. Group 3: Company Developments - Beautiful Garden Medical Health has expanded its brand portfolio, which includes multiple brands such as Beautiful Garden, Beili Shi, and others, focusing on lifestyle beauty, medical beauty, and healthcare [3]. - As of December 31, 2024, the company operates over 554 stores, with 275 being direct-operated and 279 being franchised or managed [3]. - The company announced a plan to acquire an additional 20% stake in Guangzhou Nairui, increasing its ownership to 90%, which is expected to enhance its business model and competitive edge [4]. - Recent shareholder activity, including CITIC Securities' purchase of 147,000 shares, has bolstered market confidence in the company [4].