Core Viewpoint - The acquisition of Siyanli by Meili Tianyuan Medical Health (02373) is expected to solidify its position in the mid-to-high-end beauty care services market, with potential for further optimization in its business model through both organic and external growth strategies [1][2] Group 1: Acquisition Details - The company announced on October 15 that it will acquire 100% equity of Siyanli, the third-largest beauty service brand in China, for a consideration of 1.25 billion RMB [1] - Siyanli operates 163 beauty service stores and 19 medical beauty clinics across 48 cities in China, with approximately 60,000 active members [2] - The acquisition is expected to enhance the company's overall competitiveness and leverage synergies, as it will consolidate the top three beauty service brands in the country [2] Group 2: Financial Projections - The company updated its net profit forecasts for 2025-2027 to 372 million, 409 million, and 486 million RMB, respectively, with corresponding P/E ratios of 18X, 17X, and 14X [1] - Siyanli is projected to achieve a net profit of 81 million RMB in 2024, with expectations of improving its profit margin from 6.5% in 2023 to 10.4% by the first half of 2025 after integration [2] - The acquisition price corresponds to a TTM P/E valuation of approximately 17 times, which is lower than the valuation of the listed company [2] Group 3: Shareholder Returns - The company plans to maintain a dividend payout of no less than 50% of the net profit attributable to shareholders for the next three complete financial years [1][2] - The company has been actively repurchasing shares to support its market price, having repurchased 605,500 shares out of an authorized 23.58 million shares [2]