Investment Rating - The report maintains a "Buy" rating for the company with a target price of 37.00 HKD [8][9]. Core Insights - The company's core competitive advantage lies in high-quality membership and comprehensive lifecycle management, with traditional beauty services as the foundation, complemented by medical beauty and sub-health services to extend customer lifecycles and enhance customer stickiness [1]. - The company is actively increasing its dividend payout ratio, optimizing its shareholder structure, and implementing long-term incentive mechanisms, which may improve liquidity and indicate potential for PE valuation recovery [1]. - The company is expected to continue industry consolidation and business acquisitions to enhance market share and strengthen economies of scale [2]. Financial Performance - The beauty and health services revenue for 2024 is projected to reach 1.443 billion RMB, with a year-on-year growth of 20.9%, and the company plans to increase the number of direct and franchise stores [2]. - Medical beauty and sub-health services revenue for 2024 is expected to reach 928 million RMB and 201 million RMB, respectively, with significant growth rates of 9.1% and 98.9% year-on-year [3]. - The company anticipates net profits for 2025, 2026, and 2027 to be 315.33 million RMB, 367.89 million RMB, and 418.15 million RMB, respectively, indicating a robust growth trajectory [5][20]. Strategic Initiatives - The company has outlined three strategic initiatives aimed at maximizing shareholder value: establishing a long-term shareholder return mechanism, attracting quality long-term institutional investors, and implementing a core management equity incentive plan [4]. - The company aims to allocate no less than 50% of annual net profit attributable to shareholders for dividends from 2025 to 2027, barring special circumstances [4]. Valuation Metrics - The report assigns a PE ratio of 25x for 2025, reflecting the company's position as a leading brand in beauty and health, with a target price of 37.00 HKD based on this valuation [5]. - The company’s cash position is strong, with nearly 1.4 billion RMB at the end of 2024, supporting its stable business development and ongoing market share enhancement [5].

Financial Data and Key Metrics Changes - The company reported a quorum with 8,569,618 shares of common stock entitled to vote at the meeting, indicating strong shareholder engagement [5] - The preliminary voting results showed that all proposals, including the election of directors and amendments to the equity incentive plan, were approved, reflecting shareholder support for the company's strategic direction [12] Business Line Data and Key Metrics Changes - The company emphasized its focus on advancing its late-stage pipeline, particularly in multiple myeloma, which is a core area of revenue generation [17] Market Data and Key Metrics Changes - The management acknowledged the competitive nature of the myeloma market and the importance of progressing Phase III trials to create new standards of care and enhance shareholder value [18] Company Strategy and Development Direction - The company is committed to maximizing shareholder value by focusing on its late-stage pipeline and exploring alternatives to extend its cash runway [17][18] - The management is actively working to create long-term shareholder value through the success of its commercial organization and product revenue [18] Management's Comments on Operating Environment and Future Outlook - Management expressed understanding of shareholder frustrations regarding stock performance and reiterated their commitment to advancing clinical trials and generating revenue [18] - The company is focused on addressing high unmet needs in the market, which is critical for both patient outcomes and shareholder value [17] Other Important Information - The meeting was conducted virtually, allowing shareholders to participate and submit questions online, demonstrating the company's commitment to transparency and engagement [3] Q&A Session Summary Question: Why are patients and investors best served by the current path given potential noncompliance with lender requirements? - Management highlighted their focus on maximizing shareholder value and advancing their late-stage pipeline to serve patients better and grow revenues [17] Question: What is the plan to maximize shareholder value given insufficient cash runway? - Management acknowledged shareholder frustrations and emphasized their commitment to building shareholder value through progressing Phase III trials and focusing on product revenue [18] Conclusion - The meeting concluded with no further questions, indicating a clear communication of the company's strategies and future outlook [20]

Financial Data and Key Metrics Changes - The company reported solid operating and financial performance for Q4 and full-year 2024, achieving 4.5% consolidated organic growth driven by demand across towers, small cells, and fiber solutions [39][47] - Structural reductions in operating costs of $100 million on an annualized basis and a reduction in net CapEx by almost $200 million compared to the revised 2024 full-year forecast were achieved [16][39] - A goodwill impairment charge of approximately $5 billion was recorded for the full-year 2024 due to the carrying amount of the Fiber Reporting unit exceeding its estimated fair value [20] Business Line Data and Key Metrics Changes - Organic growth in towers was 4.5%, small cells 12%, and fiber solutions 2%, with small cells achieving the highest level of incremental annual node production in the company's history [17][18] - The company plans to focus on free cash flow generation rather than topline revenue growth, increasing the hurdle rates for project pipelines and enhancing capital spending efficiency [13][16] Market Data and Key Metrics Changes - The company anticipates a continuation of solid growth in 2025, projecting organic growth of 4.5% in towers, excluding the impact of Sprint consolidation churn [22][23] - The expected churn rate for towers remains between 1% to 2%, with approximately $205 million in Sprint churn anticipated [25][26] Company Strategy and Development Direction - The company has concluded its fiber strategic review and signed a definitive agreement to sell its Fiber segment to EQT and Zayo, aiming to maximize long-term shareholder value by focusing on its tower business [7][9] - The capital allocation framework will prioritize free cash flow generation, with plans to return capital to shareholders through dividends and share repurchases post-transaction [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strength of the tower business model, highlighting the U.S. as the best market for wireless infrastructure ownership [48] - The company expects to maintain an investment-grade credit rating post-transaction, targeting leverage between 6 times and 6.5 times [33][89] Other Important Information - The company plans to implement a share repurchase program of approximately $3 billion in conjunction with the close of the fiber transaction, expected in the first half of 2026 [34][34] - The company will continue to operate the Fiber segment in the ordinary course of business during 2025, expecting it to generate results in line with 2024 [21][76] Q&A Session Summary Question: Is the company locked into the U.S. market for towers, or might it consider opportunities in Europe? - The company is focused on the U.S. market but remains open to evaluating inbound opportunities if they arise [55][58] Question: What is the expected organic growth for the tower business? - The company projects 4.5% growth in the tower business, with dividend growth expected to mirror AFFO growth over time [61][62] Question: Can you provide insights on leasing activity and capital allocation? - The company has seen a sequential increase in applications, primarily driven by carrier deployments of mid-band spectrum, and anticipates stable revenue visibility due to master lease agreements [70][72] Question: What is the expected free cash flow contribution from the Fiber segment? - The Fiber segment is expected to generate approximately $250 million in positive free cash flow for 2025, similar to 2024 levels [76] Question: What are the plans for capital expenditures and operational initiatives? - The company plans to allocate capital towards land acquisition and improving operational efficiencies, with a focus on enhancing margins and customer service [128][135]