IMEIK(SZ:300896) Founder Securities·2025-03-13 01:33Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating a predicted increase of over 20% relative to the benchmark index in the next 12 months [2][7][18]. Core Insights - The company plans to acquire 85% of REGEN Biotech for $190 million, aiming for full ownership within 18 months, which will enhance its indirect stake to 70% [3]. - REGEN Biotech is a leading player in regenerative aesthetics in South Korea, known for its PDLLA injection products, with approvals in 34 countries including China [4]. - The acquisition is expected to create a comprehensive regenerative product matrix, alleviating market concerns about the company's product pipeline [5]. - The Korean factory is anticipated to serve as a global expansion platform, leveraging REGEN Biotech's existing market presence in 34 countries [5]. - The acquisition is projected to significantly boost the company's earnings, with an expected annual profit increase of 30 million yuan based on 2023 data [6]. - The report emphasizes that this acquisition will reshape the company's valuation and address concerns regarding its growth trajectory [7]. Financial Projections - The company’s total revenue is projected to grow from 2,869 million yuan in 2023 to 4,106 million yuan by 2026, reflecting a compound annual growth rate (CAGR) of approximately 18.6% [11][14]. - The net profit attributable to the parent company is expected to rise from 1,858 million yuan in 2023 to 2,730 million yuan in 2026, with a CAGR of about 18.68% [11][14]. - The earnings per share (EPS) is forecasted to increase from 8.60 yuan in 2023 to 9.02 yuan in 2026 [11][14]. - The price-to-earnings (PE) ratio is expected to decrease from 34.22 in 2023 to 22.28 in 2026, indicating a potential valuation re-rating [11][14].