Company Overview - The company announced on October 15 a strategic acquisition of 100% equity in Siyuanli for a consideration of 1.25 billion yuan, with a transaction valuation of 14.8x P/E (LTM) [1] - The payment structure includes 330 million yuan in cash, 510 million yuan in acquisition loans, and 410 million yuan in share payments, with shares issued at 28.71 HKD per share, representing 6.70% of the total issued shares, subject to a lock-up period of 6 months to 1 year [1] Market Position - Siyuanli is projected to be the third-largest beauty service brand in China in 2024, with revenues and net profits of 850 million yuan and 80 million yuan respectively, and a net profit margin of 9.6% [2] - The company operates 163 beauty service stores and 19 medical beauty clinics across 48 cities in China, with over 90% of its revenue coming from the top 20 first-tier and new first-tier cities [2] - Post-acquisition, the combined entity will cover 42% of high-end commercial properties in the top 20 cities, enhancing market share in the high-end beauty service sector [2] Operational Synergies - The company has over 30 successful acquisition integration experiences over 32 years, which is expected to enable systematic output of mature medical beauty and sub-health services to Siyuanli [3] - The focus will be on optimizing operational efficiency and profitability through refined customer operations, digital transformation, and supply chain integration [3] Growth Potential - The acquisition of Siyuanli, along with previous acquisitions of the second brand Nairui, strengthens the company's leading position in the beauty and health industry, creating a larger member flow and denser high-end commercial network [3] - The "dual beauty + dual health" business model is expected to open up significant growth opportunities for the company [3] Financial Forecast and Valuation - The company maintains its profit forecast for 2025-2026, with the current stock price corresponding to 25/22x P/E for those years [3] - The target price has been raised by 5% to 42 HKD, reflecting a 25% upside potential based on the strengthened leading position [3]
美丽田园医疗健康(02373.HK)：战略收购思妍丽 强化高端美容服务龙头地位