Core Viewpoint - The exit of CPE as a major shareholder of Meili Tianyuan Medical Health Industry Co., Ltd. is expected to enhance the company's shareholder structure and market confidence, while introducing new long-term investors to support its strategic development [1][2]. Group 1: Shareholder Structure Changes - CPE has successfully completed the sale of 51.32 million shares, ceasing to be a major shareholder as of August 18 [1]. - The exit of CPE is anticipated to stabilize the shareholder structure and improve market liquidity by increasing the proportion of circulating shares [1]. - New significant shareholders, Defo Capital and Nairui Health Technology Co., Ltd., hold 9.71% and 7.21% of shares respectively, enhancing the company's governance [1][2]. Group 2: Strategic Implications of New Shareholders - Defo Capital brings long-term stable capital and industry expertise, supporting future mergers and strategic planning [2]. - Nairui's investment creates a synergistic model between industry and capital, complementing Meili Tianyuan's existing business and facilitating market expansion in the Greater Bay Area [2]. Group 3: Capital Market Value Enhancement Plan - The shareholder structure adjustment is a key part of the company's capital market value enhancement plan, which includes establishing a long-term shareholder return mechanism and optimizing capital structure [3]. - The company commits to distributing at least 50% of annual net profit to dividends over the next three fiscal years, barring special circumstances [3]. - The plan also involves continuous introduction of long-term strategic investors to build a healthier and more diverse shareholder ecosystem [3].

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has successfully addressed high operational costs in the industry, achieving both organic growth and external acquisitions to solidify its leading position. Its brand strength, channel network, and customer base advantages continue to be validated. Recently, major shareholder CPE has exited, leading to an ongoing optimization of the shareholder structure [2] Financial Summary - Current market capitalization is HKD 6,850 million [3] - Revenue projections show a growth trajectory from RMB 2,145.07 million in 2023 to RMB 3,590.85 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 8.4% [5][7] - Net profit is expected to increase from RMB 215.66 million in 2023 to RMB 417.03 million in 2027, indicating a significant growth rate of 93.4% over the period [5][7] - The company plans to increase its dividend payout ratio to at least 50% of annual net profit from 2025 to 2027, enhancing shareholder returns [6] Earnings Per Share (EPS) Forecast - The EPS estimates have been revised upwards for 2025-2027 to RMB 1.30, RMB 1.43, and RMB 1.77 respectively, reflecting a positive outlook on profitability [6] Shareholder Structure and Strategic Initiatives - The exit of CPE as a major shareholder has led to the introduction of high-quality institutional investors, improving market liquidity and trading activity. The company aims to build a healthier and more diversified shareholder ecosystem [6] - The company is implementing a long-term incentive plan for its core management team, aligning their performance with shareholder value growth [6] Business Model and Market Position - The company is enhancing its stake in Guangzhou Nairui'er by acquiring an additional 20%, increasing its ownership to 90%. This move is expected to significantly boost net profit and earnings per share [6] - The company leverages its strong brand and customer loyalty in the beauty and health management sectors, aiming to overcome high operational costs through a synergistic business model [6]