Core Viewpoint - Meili Tianyuan Medical Health (02373.HK) announced a strategic acquisition of 100% equity in Shanghai Siyuanli Industrial Co., Ltd. for a consideration of 1.25 billion RMB, marking it as the largest acquisition in the beauty industry this year [1][6]. Acquisition Details - The acquisition price of 1.25 billion RMB includes 325 million RMB for domestic acquisition and 511 million RMB for overseas acquisition, along with the issuance of 15,798,147 shares at a price of 28.71 HKD per share, representing a discount of 19.67% from the last trading price of 35.74 HKD [6][8]. - The independent valuation firm Jinzheng evaluated Siyuanli at 1.395 billion RMB, indicating that Meili Tianyuan's acquisition price is 89.6% of Siyuanli's valuation [8]. - Following the acquisition, Meili Tianyuan will have over 734 stores and approximately 60,000 active members from Siyuanli integrated into its membership system [8]. Financial Performance of Siyuanli - Siyuanli's revenue for the years 2022, 2023, 2024, and the first half of 2025 is reported as 565 million RMB, 818 million RMB, 849 million RMB, and 423 million RMB respectively, with net profit/loss figures of -36.4 million RMB, 69.4 million RMB, 81 million RMB, and 44 million RMB [12][13]. Market Reaction - The market response to the acquisition was lukewarm, with Meili Tianyuan's stock opening at 36.5 HKD but closing down 5.43% at 33.8 HKD on the announcement day [4]. Strategic Positioning - This acquisition follows Meili Tianyuan's previous acquisition of Guangzhou Nairui Health Management Co., Ltd., positioning it among the top three beauty service brands in China [14]. - Meili Tianyuan aims to leverage its portfolio of brands, including Meili Tianyuan, Beili Shi, Nairui, and Siyuanli, to strengthen its market presence in high-end sectors [14]. Future Outlook - The company has completed over 30 acquisitions to date and anticipates further opportunities, projecting revenues to exceed 4 billion RMB and adjusted net profits to surpass 500 million RMB by 2026 [15]. - As of the first half of 2025, Meili Tianyuan reported revenues of 1.459 billion RMB and net profits of 170.8 million RMB, reflecting a growth of 28.2% and 35.5% respectively compared to the previous year [16]. Consumer Complaints - Meili Tianyuan and its brands, including Nairui and Siyuanli, have faced consumer complaints related to refund difficulties and service quality, prompting the company to enhance its customer service response [17][20].
美丽田园接连收购行业老二老三，美容业最大并购市场不看好？