\u3000\u3000 Imeik Technology Development Co.Ltd(300896) (300896)
The company is a leading provider of innovative medical and beauty products in China. Founded in 2004, the company is a leading supplier of medical and American products in China. In recent years, it is in a period of rapid growth. The CAGR of income and net profit in 14-20 years are 45% and 58% respectively. Ms. Jian Jun is the actual controller of the company, with a shareholding ratio of 38%. The core members of the senior management team have rich cross industry experience, covering many fields such as medical beauty, science and technology, pharmacy and medical devices, with an average of about 17 years of employment.
China’s medical beauty market is in a period of rapid growth, and the growth rate of non-surgical medical beauty is higher than that of surgery. According to frost Sullivan data, in 2020, the market scale of Chinese medical beauty was 154.9 billion yuan, of which the market scale of non-surgical and surgical medical beauty was 77.3 billion yuan and 77.6 billion yuan respectively. In the future, the growth rate of non-surgical medical beauty is expected to be significantly higher than that of surgical medical beauty, and the compound growth rate of 2021e-2030e is expected to be 17.6% and 11.1% respectively. In the non-surgical medical and beauty industry, hyaluronic acid and Botox are two entry-level injection projects, and the market scale is much larger than that of other categories. In addition, new products such as poly (L-lactic acid) cortical fillers (children’s facial needles, etc.) and facial implant products are expected to achieve rapid growth.
The company’s core competitiveness is mainly reflected in: 1) the product matrix is complete and rich, and there are sufficient growth points in the future. Compared with its peers, the company has the largest number of compliant products (three types of medical device certificates). The approved products include five skin fillers based on hyaluronic acid, one skin filler based on polyl-lactic acid and one ppdo facial implant line product. At present, hi Ti, Everest and Bonita have contributed to the company’s main revenue, accounting for 94% in 2019; In the short and medium term, hi Ti, moistening angel and bonida are the main growth points in the future; In the long run, there are abundant reserves of products under research, and products such as botulinum toxin and liraglutide injection are expected to achieve growth relay. 2) Self research + external cooperation, R & D and innovation drive the rapid growth of the company. On average, the company’s core R & D personnel have more than 8 years of medical and aesthetic related working experience. The background of R & D and production technicians covers bioengineering, polymer chemistry and physics, pharmaceutical engineering and other majors. Nearly half of the R & D personnel have master’s degrees or above. In addition, the company actively cooperates with business partners and research institutions, including Oriental medical, hoons Co, Ltd, Shandong chengchuang, etc. 3) Adopt the sales mode of direct selling, pay attention to the b-end service support and education, and help the C-end sales transformation. Through the direct sales mode, the company helps medical and American institutions focus on solving key problems such as marketing strategy, product training and customer management, so as to improve the stickiness of cooperation. Among them, quanxuan classroom is an important service carrier. In addition, the company implements a unified price system for direct sales and distribution customers to ensure the health and order of operation. On the whole, Imeik Technology Development Co.Ltd(300896) is at the top level among Chinese peers in terms of product layout, R & D and channels. With the continuous deepening of domestic substitution and benchmarking with aierjian, Imeik Technology Development Co.Ltd(300896) is expected to become a giant upstream raw material supplier of China’s medical beauty in the future.
Profit forecast and investment suggestions
We expect the company’s earnings per share from 2021 to 2023 to be 4.40 yuan, 6.91 yuan and 9.80 yuan respectively, and the target valuation of DCF is 537.11 yuan, giving a “buy” rating for the first time.
Risk tip: product safety risk, stricter industry supervision, commercialization of new products, ASP, gross profit margin and sales volume are less than expected.
