\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Event:
Bloomage Biotechnology Corporation Limited(688363) released the performance express for 2021. It is estimated that in 2021, the revenue will be 4.948 billion yuan / + 87.93%, the net profit attributable to parent company will be 782 million yuan / + 21.13%, and the net profit not attributable to parent company will be 663 million yuan / + 16.74%.
Key investment points:
Revenue continued its high growth momentum, and profits achieved steady growth. In 2021, the company achieved a revenue of 4.948 billion yuan / + 87.93%, and a net profit attributable to the parent company of 782 million yuan / + 21.13%. In Q4 alone, the revenue was 1.936 billion yuan / + 86.78%, continuing the rapid growth trend in the first three quarters. The net profit attributable to the parent company is 227 million yuan / + 9%, and the growth rate of the net profit attributable to the parent company is lower than the expected revenue, mainly due to: 1) the substantial growth of R & D investment and the improvement of the overall R & D strength; 2) Launch effective skin care brands and build brand matrix; 3) Organizational structure optimization + investment in talents; 4) Forward looking layout of production capacity. We believe that the above investment will contribute to the medium and long-term development of the company.
The business of functional skin care products increased rapidly, and the raw materials and medical terminals grew steadily. In terms of business, the company's 2021: 1) the revenue of functional skin care products increased by 147% year-on-year to 3.32 billion yuan, slightly exceeding the market expectation. It is expected that: (1) the scientific and technological power has a good effect on the shaping of product power, and the new speed and high consumer recognition in 2021; (2) The four major brands have formed a large single product matrix, and the re purchase contribution of old users has increased; 2) The raw material business increased by 28.6% year-on-year to RMB 900 million, mainly due to the steady growth of pharmaceutical grade and cosmetic grade raw materials, while food grade raw materials and other raw materials increased significantly; 3) It is estimated that the revenue of the overall medical terminal business may be about 700 million yuan / + 26%. With the adjustment of the company's medical and beauty business organization and the approval of Sili kinetic energy 516 and 532 as clinical urgently needed medical devices, it is worth looking forward to in the future.
Adhere to the investment in scientific and technological research and development, and four-wheel drive is at the right time. The R & D expense rate of 2021q1-3 company reached 6.4% / further increased by 0.4pct compared with the same period in 2020. It is expected that the company will continue to increase R & D investment and strengthen its core competitiveness in the future. Since 2022, the company has joined hands with Ocean University of China to build a functional glycomics innovation center, Peking Union Medical College Hospital to help the implementation of medical strategic projects, and the Institute of biology, Shandong Academy of Sciences to build a joint innovation center for efficacy evaluation. The company's four-wheel drive strategy is at the right time.
Profit forecast and investment rating: the company is a leading enterprise of cutting-edge domestic cosmetics brands. At present, the company has formed a matrix of four major cosmetics brands, and the skin care business has maintained rapid growth. The business of raw materials and medical terminal grew steadily, and the four-wheel drive was at the right time. It is estimated that in 2021 / 22 / 23, the company will achieve revenue of RMB 4.95/68.7/8.85 billion, with a year-on-year increase of 87.9% / 38.9% / 28.7%. The net profit attributable to the parent company is expected to be RMB 782 / 1011 / 1366 million, with a year-on-year increase of 21% / 30% / 35%. Maintain the "overweight" rating.
Risk tips: 1) substantial increase in flow cost; 2) Overseas brands cut prices to seize market share; 3) Product quality problems; 4) Stricter supervision leads to the new products being less than expected; 5) The rapid rise of cutting-edge brands intensifies competition; 6) If relevant materials and data are inconsistent with Bloomage Biotechnology Corporation Limited(688363) announcement, the announcement of the company shall prevail.
