Core Viewpoint - Meili Tianyuan Medical Health (02373) is positioned as a leading enterprise in the domestic beauty and medical beauty service sector, with strong brand reputation and operational capabilities. The company is expected to see performance growth driven by deepening digital transformation, improved industry chain layout, and store expansion [1] Group 1: Acquisition Details - In October 2025, Meili Tianyuan announced plans to acquire 100% equity of Shanghai Siyuanli Industrial Co., Ltd. for a consideration of 1.25 billion RMB. Siyuanli is the third-largest beauty service brand in China, projected to achieve revenue of 850 million RMB and net profit of 81 million RMB in 2024 [1][2] - The acquisition follows Meili Tianyuan's previous acquisition of the second-largest beauty service brand, Nairui'er, in 2024, marking another significant acquisition [1] Group 2: Financial Metrics and Valuation - The acquisition is valued at 17.2X PE based on Siyuanli's projected net profit of 72.675 million RMB for the period from July 1, 2024, to June 30, 2025, which is significantly lower than Meili Tianyuan's current PE of approximately 29.2X and the industry average of 21.1X [3] - The payment structure includes 325 million RMB in cash, 510 million RMB in acquisition loans, and 415 million RMB in share payments, with the deal expected to close in December 2025 and be consolidated in January 2026 [3] - Post-acquisition, the expected EPS is projected to increase from 1.36 RMB to 1.62 RMB, representing an 18% enhancement [3] Group 3: Market Position and Synergy - The acquisition will consolidate Meili Tianyuan, Nairui'er, and Siyuanli as the top three players in the Chinese beauty service industry, with a total of over 734 stores and a market coverage of 42%, significantly enhancing the company's market influence [4] - The integration of Nairui'er’s operational experience is expected to enhance Siyuanli's efficiency through scale procurement, joint product development, and exclusive customization, potentially improving both gross and net profit margins [4]

Core Viewpoint - Meili Tianyuan Medical Health (02373) is positioned as a leading enterprise in the domestic beauty and medical beauty service sector, with strong brand reputation and operational capabilities. The company is expected to see significant performance growth due to deepening digital transformation, improved industry chain layout, and ongoing store expansion [1]. Group 1: Financial Projections - The projected net profit for Meili Tianyuan from 2025 to 2027 is estimated to be 337 million, 458 million, and 588 million RMB respectively, with previous estimates adjusted due to the acquisition's expected contribution [1]. - The current stock price corresponds to a price-to-earnings (PE) ratio of 20.4, 15.0, and 11.7 for the years 2025, 2026, and 2027 respectively, with a target price set at 42.64 HKD based on a 20x PE for 2026 [1]. Group 2: Acquisition Details - Meili Tianyuan plans to acquire 100% of Shanghai Siyuanli Industrial Co., Ltd. for a total consideration of 1.25 billion RMB, marking a significant acquisition following the purchase of the second-largest beauty service brand, Nairui'er [2]. - Siyuanli is recognized as the third-largest beauty service brand in China, with projected revenues of 850 million RMB and a net profit of 81 million RMB for 2024 [2]. Group 3: Operational Insights - As of June 30, 2025, Siyuanli operates 163 high-end beauty service stores and 19 medical beauty clinics across 48 cities, with over 90% of its revenue generated from first-tier and new first-tier cities [3]. - The acquisition is expected to increase Meili Tianyuan's active direct member base by 44%, enhancing its "dual beauty + dual healthcare" business model [3]. Group 4: Transaction Highlights - The acquisition is valued at a PE ratio of 17.2, significantly lower than Meili Tianyuan's current PE of approximately 29.2 and the industry average of 21.1 [4]. - The payment structure includes 325 million RMB in cash, 510 million RMB in acquisition loans, and 415 million RMB in share payments, with the deal expected to close in December 2025 [4]. Group 5: Strategic Positioning - Post-acquisition, Meili Tianyuan, Nairui'er, and Siyuanli will collectively dominate the top three positions in China's beauty service industry, with over 734 stores and a market coverage of 42% [5]. - The integration of Nairui'er’s operational experience is anticipated to enhance Siyuanli's efficiency and profitability through supply chain collaboration and digital transformation efforts [5].

Core Viewpoint - The acquisition of Siyanli by Meili Tianyuan Medical Health (02373) is expected to solidify its position in the mid-to-high-end beauty care services 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 on October 15 that it will acquire 100% equity of Siyanli, the third-largest beauty service brand in China, for a consideration of 1.25 billion RMB [1] - Siyanli operates 163 beauty service stores and 19 medical beauty clinics across 48 cities in China, with approximately 60,000 active members [2] - The acquisition is expected to enhance the company's overall competitiveness and leverage synergies, as it will consolidate the top three beauty service brands in the country [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 P/E ratios of 18X, 17X, and 14X [1] - Siyanli is projected to achieve a net profit of 81 million RMB in 2024, with expectations of improving its profit margin from 6.5% in 2023 to 10.4% by the first half of 2025 after integration [2] - The acquisition price corresponds to a TTM P/E valuation of approximately 17 times, which is lower than the valuation of the listed company [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 to support its market price, having repurchased 605,500 shares out of an authorized 23.58 million shares [2]

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].

Core Viewpoint - The acquisition of Siyuanli is expected to significantly enhance the company's performance, leading to an upward revision of the net profit forecasts for 2025-2027 [1] Group 1: Financial Performance and Projections - The revised net profit estimates for Meili Tianyuan Medical Health (02373) are 320 million, 440 million, and 490 million RMB for 2025, 2026, and 2027 respectively, reflecting increases of 5%, 26%, and 21% [1] - Corresponding EPS for the same years are projected to be 1.36, 1.86, and 2.09 RMB, with current PE ratios of 20, 14, and 13 times [1] Group 2: Shareholder Return Plan - The company announced a long-term shareholder return plan, aiming to utilize up to 1.2 billion HKD over the next three years [2] - The return plan will be executed through two main methods: annual dividends of no less than 50% of the company's net profit and ongoing share buybacks [3] Group 3: Acquisition of Siyuanli - The company announced a strategic acquisition of 100% of Siyuanli for 1.25 billion RMB, which is the third-largest beauty service brand in China [4] - Following the acquisition, approximately 60,000 active members from Siyuanli will be integrated into the company's membership system, increasing the active membership base by over 44% [4] - The acquisition is expected to significantly enhance the company's market share in high-tier cities, solidifying its position as an industry leader [4] Group 4: Growth Strategy - The company employs a "dual growth" strategy, combining organic growth with acquisitions, which has successfully built a high-quality membership system [5] - The successful integration of the second-largest brand, Nairui, has demonstrated the company's capability in synergistic integration, with Nairui's net profit margin increasing from 6.5% to 10.4% post-acquisition [5] - The company anticipates that the acquisition of Siyuanli will further enhance operational efficiency and strengthen the competitive position of both Siyuanli and Meili Tianyuan brands [5]

Group 1 - The core viewpoint of the report is that the acquisition of Siyuanli will directly enhance the company's performance, leading to an upward revision of the net profit forecasts for 2025-2027 to 320 million, 440 million, and 490 million RMB, representing increases of 5%, 26%, and 21% respectively, with corresponding EPS of 1.36, 1.86, and 2.09 RMB, and current PE ratios of 20, 14, and 13 times [1] - The company announced a long-term shareholder return plan, expecting to utilize up to 1.2 billion HKD over the next three years to provide returns to shareholders [1] Group 2 - The shareholder return plan will be implemented through two main methods: first, an annual dividend of no less than 50% of the company's net profit attributable to shareholders; second, a continuous share buyback program [2] - This substantial shareholder return plan reflects the company's strong confidence in future development and highlights its solid cash flow foundation and overall strength [2] Group 3 - The company announced a strategic acquisition of 100% equity in Siyuanli for 1.25 billion RMB, which is the third-largest beauty service brand in China, with a significant presence in major cities [3] - Following the acquisition, approximately 60,000 active members from Siyuanli will be integrated into the company's membership system, leading to a more than 44% increase in active membership [3] - The company's market share in high-tier cities will significantly increase, further solidifying its position as an industry leader [3] Group 4 - The company's growth is driven by both internal and external factors, with a dual business model of "dual beauty + dual healthcare" effectively building a high-quality membership system [4] - The successful acquisition of the second-largest brand, Nairui, has demonstrated the company's integration and synergy capabilities, with Nairui's adjusted net profit margin increasing from 6.5% to 10.4% in the first half of 2025 [4] - The company is expected to leverage its extensive acquisition experience to enhance Siyuanli's operational efficiency and achieve mutual empowerment between the Siyuanli and Meili Tianyuan brands, thereby continuously improving its industry influence and competitiveness [4]

Core Viewpoint - The company announced a long-term shareholder return plan, expecting to utilize up to HKD 1.2 billion over the next three years to provide returns to shareholders [4]. Group 1: Shareholder Return Plan - The shareholder return plan will be implemented through two main methods: an annual dividend of no less than 50% of the company's net profit attributable to shareholders and ongoing share buybacks [5]. - This substantial shareholder return plan reflects the company's strong confidence in its future development and indicates a solid cash flow foundation and comprehensive strength [5]. Group 2: Acquisition of Si Yan Li - In October, the company announced a strategic acquisition of 100% equity in Si Yan Li for RMB 1.25 billion, which is the third-largest beauty service brand in China [6]. - Following the acquisition, approximately 60,000 active members from Si Yan Li will be integrated into the company's membership system, leading to a more than 44% increase in active membership [6]. - The company's market share in high-tier cities will significantly increase, further solidifying its position as an industry leader [6]. Group 3: Growth Strategy - The company employs a "dual-driven" growth strategy, combining internal growth with external acquisitions [7]. - Internally, the company has established a high-quality membership system through its "Double Beauty + Double Health" business model [7]. - Externally, the successful acquisition of the second-largest brand, Nai Rui Er, has improved its net profit margin from 6.5% to 10.4% in the first half of 2025, showcasing the company's integration capabilities [7]. - The company is expected to leverage its extensive acquisition experience to enhance the operational efficiency of Si Yan Li, thereby increasing its industry influence and competitiveness [7].

Core Viewpoint - Meili Tianyuan Medical Health (02373.HK) announced a significant shareholder return plan, intending to utilize up to HKD 1.2 billion over the next three years through dividends and share buybacks [2][3]. Group 1: Shareholder Return Plan - The company plans to distribute annual dividends amounting to no less than 50% of the net profit attributable to shareholders for the next three complete financial years [3]. - The company has received authorization to repurchase up to 23.5796 million shares under the existing buyback authorization, with 605,500 shares already repurchased as of November 4 [3][5]. Group 2: Market Reaction and Analysis - Following the announcement, the stock price of Meili Tianyuan rose by 3.13%, reaching HKD 30.34 per share [2]. - Analysts believe the feasibility of the shareholder return plan hinges on the company's ability to deliver stable performance, which is essential for sustaining shareholder returns [2][5]. - The management's decision to implement this plan is seen as a confidence signal in the company's long-term value, especially amid recent stock price declines [5]. Group 3: Future Considerations - The success of the shareholder return plan will ultimately depend on the company's ability to fulfill its commitments and demonstrate performance through quarterly results [5]. - Meili Tianyuan is also anticipated to be a contender for the "Top 100 Hong Kong Stocks" list, which could further enhance its market position [5].

Summary of the Conference Call for 美丽田园 Company Overview - 美丽田园 has acquired 思妍丽 for 1.25 billion RMB, with an actual payment of less than 900 million RMB due to a clever transaction structure involving merger loans and share issuance [2][3][5] - 思妍丽 is the third-largest beauty service brand in China, with projected revenue of 850 million RMB and net profit of 80 million RMB for 2024 [3] Industry Insights - The beauty industry is expected to double its revenue over the next five years, with 美丽田园 aiming for a thousand-store scale through organic growth and acquisitions [2][6] - The medical beauty sector is experiencing intensified competition, prompting 美丽田园 to diversify its product offerings across different price ranges [2][10] Financial Impact of Acquisition - The acquisition is expected to enhance 美丽田园's financial metrics, with a projected increase in net profit margin from 10% to 13% over time [4][14] - The company anticipates a revenue target of 4 billion RMB for 2025, with significant growth indicators such as a 9.3% increase in net consumption during the anniversary period [4][21] Growth Strategies - 美丽田园 plans to achieve revenue growth through a combination of internal growth and acquisitions, targeting moderate-sized acquisitions annually [6][22] - The company aims to optimize its supply chain, which is expected to improve net profit margins by 2-3 percentage points [9][13] Supply Chain Transformation - The supply chain strategy will shift from reliance on imported brands to collaborations with domestic brands, enhancing responsiveness to market changes [9] - Partnerships with brands like 巨子, 艾美克, and 贝泰妮 are expected to yield exclusive products and improve overall profitability [9][11] Customer Integration and Marketing - The customer profiles of 美丽田园 and 思妍丽 are similar but have low overlap, allowing for effective integration and enhanced marketing strategies post-acquisition [12][17] - The integration will leverage AI capabilities for personalized marketing and customer engagement, aiming to increase visit frequency and spending [12][17] Future Projections - The company expects to see a significant increase in its medical beauty segment's gross margin, projected to reach 56% in the first half of 2025, up 1.8 percentage points year-on-year [11] - Long-term projections suggest that net profit margins could reach 15-16% within five years, driven by operational efficiencies and market expansion [14][15] Conclusion - 美丽田园's strategic acquisition of 思妍丽 positions it as a leader in the beauty industry, with a robust plan for growth through supply chain optimization, customer integration, and market expansion [2][3][6][12]

Core Viewpoint - Beauty service company Meili Tianyuan Medical Health Industry Co., Ltd. announced the acquisition of 100% of Shanghai Siyuanli Industrial Co., Ltd. for 1.25 billion yuan, aiming for rapid expansion and increased operational scale and membership base [3][4]. Company Overview - Meili Tianyuan operates high-end beauty service brands and has a current customer flow of 920,000 and 120,000 active members in its direct stores as of the first half of 2025 [3][4]. - Siyuanli is positioned as the third-largest beauty service brand in China, operating 163 beauty stores and 19 medical beauty clinics across 48 cities [4][5]. Financial Performance - Meili Tianyuan's revenue is projected to grow from 1.643 billion yuan in 2022 to 2.572 billion yuan in 2024, with net profits increasing from 103 million yuan to 228 million yuan [4]. - Siyuanli's revenue is expected to rise from 565 million yuan in 2022 to 849 million yuan in 2024, with net profits turning positive in 2024 [4][5]. Strategic Rationale for Acquisition - The acquisition aligns with Meili Tianyuan's strategy to enhance revenue scale, as Siyuanli generates annual revenues of 800-900 million yuan, contributing positively to overall profits [5][6]. - Both companies have a strong presence in high-tier cities, with over 60% of their revenues coming from these areas, allowing for resource integration and operational efficiency [5][6]. Industry Context - The beauty service industry in China is characterized by a high number of single-store brands, with 89% of the 1 million beauty shops having only one location [7][8]. - The industry is moving towards standardization and chain development, with a need for larger players to emerge as many smaller entities may lose competitiveness [8][9].