IMEIK(SZ:300896) SINOLINK SECURITIES·2025-03-11 03:23Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][12]. Core Insights - The company is acquiring 85% of REGEN Biotech, Inc. for $190 million, with the total equity valuation of the target company at approximately $224 million [1]. - The target company has two mature products and is expected to enhance the company's international market presence and product offerings [2][3]. - Revenue projections for the company are adjusted to reflect a net profit of 2.18 billion, 2.64 billion, and 3.14 billion RMB for 2024-2026, with respective year-on-year growth rates of 17%, 21%, and 19% [4][7]. Summary by Sections Acquisition Overview - The acquisition involves a cash investment of $190 million to acquire 85% of REGEN Biotech, which specializes in medical materials and devices [1]. - The target company has two operational factories in South Korea, with one factory expected to commence production in Q2 2025 [2]. Financial Projections - The company’s revenue is projected to grow from 2.87 billion RMB in 2023 to 4.67 billion RMB in 2026, reflecting a compound annual growth rate (CAGR) of approximately 18% [7]. - The diluted earnings per share (EPS) are forecasted to be 7.21, 8.73, and 10.38 RMB for 2024-2026 [4][7]. Market Positioning - The acquisition is expected to leverage the target company's market channels and brand influence to enhance the company's visibility in the global aesthetic medicine market [3]. - The core products of the target company complement the existing product line, potentially meeting diverse consumer needs [3].