Core Viewpoint - The acquisition of Siyuanli by Meili Tianyuan Medical Health is expected to strengthen its position in the mid-to-high-end beauty care service 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 the acquisition of 100% equity of Siyuanli for a consideration of 1.25 billion RMB [1]. - Siyuanli is the third-largest beauty service brand in China, with projected revenue of 849 million RMB in 2024 and operations in 48 cities with 163 beauty stores and 19 medical beauty clinics [2]. - The acquisition will consolidate the company’s competitive position by bringing together the top three beauty service brands and capturing 42% of high-end commercial properties in first- and second-tier cities [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 PE ratios of 18X, 17X, and 14X [1]. - Siyuanli is expected to achieve a net profit of 81 million RMB in 2024, with potential for profit margin improvement similar to the company’s previous acquisition of Nairui, which saw an increase from 6.5% in 2023 to 10.4% in the first half of 2025 [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, having bought back 605,500 shares out of an authorized 23.58 million shares, to support its market price [2].