Core Viewpoint - The acquisition of Shanghai Siyuanli by Meili Tianyuan highlights the current revenue status of the beauty industry, indicating a trend towards consolidation in the sector as companies seek to capitalize on market opportunities amid regulatory changes [2][3]. Company Summary - Meili Tianyuan announced a full acquisition of Shanghai Siyuanli for 1.25 billion RMB (approximately 1.369 billion HKD), with a payment structure of cash and stock [3]. - The acquisition includes 835.9 million RMB in cash and the issuance of 15.798 million new shares at a price of 28.71 HKD per share, reflecting a 19.67% discount from the last trading day's closing price [3]. - Siyuanli's estimated valuation is 1.395 billion RMB, based on independent assessments [3]. - Siyuanli's projected revenues for 2022 to 2024 are 565 million RMB, 818 million RMB, and 849 million RMB, respectively, with net profits of -36.366 million RMB, 69.426 million RMB, and 81.036 million RMB [3]. - As of mid-2025, Siyuanli operates 163 beauty stores across 48 cities, including 118 direct-operated and 45 franchised stores, along with 19 medical beauty clinics [3]. Industry Summary - The beauty and health industry in China is undergoing rapid consolidation, with Meili Tianyuan's acquisition expected to significantly enhance its market share, increasing its total store count to 734 [3][4]. - Over 90% of Siyuanli's revenue in 2024 is anticipated to come from stores located in China's top 20 first-tier and new first-tier cities, which are key consumer markets [4]. - The beauty service industry benefits from strong cash flow due to prepayment models, with Siyuanli being a prime example of this advantageous structure [4]. - Meili Tianyuan reported a revenue of 1.46 billion RMB for the first half of 2025, marking a 28.2% year-on-year increase, with net profit rising by 35.5% to 170 million RMB [4]. - The beauty industry is experiencing a phase of "merger and clearing," with numerous acquisitions occurring among listed companies, indicating a shift towards consolidation as smaller brands face operational challenges [5][6]. - The industry remains fragmented, with 88.9% of beauty brands operating only one store, highlighting the low concentration and the challenges faced by smaller players [6].
美丽田园12.5亿元全资收购思妍丽，美业整合加速