CICC has released a research report maintaining its 2025 profit forecast for BEAUTYFARM MED (02373). Based on the consolidation of Siyanli's accounts post-acquisition, the firm raised its 2026 net profit attributable to shareholders forecast by 20% to RMB 430 million and introduced a 2027 net profit forecast of RMB 540 million. This corresponds to adjusted net profits of RMB 510 million and RMB 630 million for 2026 and 2027, respectively. The current share price implies 2026-2027 P/E ratios of 13x and 10x. CICC maintains an Outperform rating and, based on the adjusted profit forecasts and changes in sector valuation, reiterates a target price of HK$42, corresponding to 2026-2027 P/E ratios of 21x and 16x, implying a 57% upside potential. CICC's main views are as follows:
The company issued a positive profit alert for 2025, forecasting revenue of no less than RMB 3 billion, representing year-on-year growth of no less than 16%. It expects an adjusted net profit of no less than RMB 380 million, a year-on-year increase of no less than 40%, and a net profit of no less than RMB 340 million, up no less than 34% year-on-year. This performance alert aligns with CICC's expectations, primarily driven by the company's dual-engine strategy of "organic growth + external acquisitions" and continuous improvement in profitability from economies of scale and refined operations.
The company expects 2025 revenue to increase by no less than 16% year-on-year. By segment, CICC anticipates double-digit growth in beauty and wellness services, low double-digit growth in medical aesthetics, and high growth in sub-health medical services, with Nairui'er contributing full-year revenue consolidation in 2025. Recent operational data indicates sustained strong organic growth momentum. According to the official WeChat account, during the year-end "Double Festival" period (Nov 6, 2025 - Jan 3, 2026), the BEAUTYFARM group (excluding Nairui'er) achieved equity sales of RMB 420 million, up 7.2% year-on-year; net consumption of RMB 450 million, up 8.5% year-on-year; and customer traffic of 190,000 visits, up 9.0% year-on-year, with all three major business segments continuing their positive growth trends.
The company expects its 2025 adjusted net profit to be no less than RMB 380 million, a year-on-year increase of no less than 40%. Calculating based on the lower end implies an adjusted net profit margin of 12.7%, up 2 percentage points year-on-year. The margin improvement stems mainly from: 1) an increased proportion of high-margin medical services organically and efficiency gains from refined operations; and 2) significant operational efficiency improvements following the acquisition and integration of Nairui'er, leading to a notable year-on-year increase in the adjusted net profit margin, benefiting from the company's leading resource integration and operational empowerment capabilities.
According to the company's announcement, the acquisition of Siyanli was completed on January 7, 2026, and its results will be consolidated starting in 2026. The company plans to apply the integration experience gained from Nairui'er to drive revenue growth and efficiency improvements at Siyanli. CICC is optimistic about the company's enhanced market pricing power following the "Triple Alliance" and its broad medium-to-long-term growth prospects driven by the three core strategies of "Super Brand, Super Chain, and Super Digitalization."
Risk warnings include intensifying industry competition, potential medical malpractice risks, and goodwill impairment risks.