\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Report guide
The company released the performance forecast and realized a revenue of 4.95 billion in 21 years, with a year-on-year increase of 87.9%, and the revenue exceeded expectations; The net profit attributable to the parent company was 780 million, with a year-on-year increase of 21.1%.
Key investment points
Performance overview:
2021: according to the performance forecast, 1) operating revenue: the revenue reached 4.948 billion yuan, a year-on-year increase of 87.9%; 2) Net profit attributable to parent company: the net profit attributable to parent company was 782 million yuan, with a year-on-year increase of 21.1%; 3) Net profit deducted from non parent company: the net profit deducted from non parent company was 663 million yuan, with a year-on-year increase of 16.7%. Non recurring gains and losses mainly come from government subsidies. 21q1-q3 confirms that the government subsidies are about 110 million yuan.
2021q4: according to the performance forecast, 1) operating revenue: the revenue was 1.936 billion yuan, a year-on-year increase of 86.8%; Net profit attributable to the parent company: the net profit attributable to the parent company was 227 million yuan, a year-on-year increase of 9.0%; 3) Net profit deducted from non parent company: the net profit deducted from non parent company was 217 million yuan, with a year-on-year increase of 11.4%.
The revenue of functional skin care products increased significantly, driving the overall revenue to exceed expectations.
The higher than expected revenue of the company is mainly driven by functional skin care products. Specifically, in 2021:
1) functional skin care products business: the revenue increased by about 146.6% year-on-year, corresponding to 3.32 billion yuan in the whole year. The revenue exceeded expectations, mainly because the company launched a variety of new products and formed a large single product matrix; The construction of the four major brands has been quite effective and the brand strength has been improved.
2) raw material business: the revenue increased by 28.62% year-on-year, corresponding to 900 million yuan in the whole year. The increase in growth rate is mainly due to the steady growth of pharmaceutical grade and cosmetic grade raw materials, and the significant growth of superimposed food grade raw materials and other raw materials.
3) medical terminal: the medical terminal business grew steadily year-on-year, and the Runzhi product matrix was promoted in an orderly manner.
4) food business: with the steady progress of functional food business, functional food brands such as heizero, shuijiquan (hyaluronic acid water) and Wuxiang corner (hyaluronic acid fruit wine) have been established since the beginning of 21 years.
Adhere to R & D investment and endogenous innovation, with more pre investment, and the growth rate of revenue is faster than that of profit.
The company adheres to the long-term principle and has invested a lot in synthetic biology and basic research and development. 21q1-q3 invested 192 million yuan in R & D, double the year-on-year growth, 212 projects under research, an increase of 89 year-on-year; There were 537 R & D personnel, with a year-on-year increase of more than 180. In addition, the impact of a number of innovative business incubation + medical and American strategic adjustment + capacity expansion + equity incentive also makes the company’s current revenue growth faster than profit growth.
Profit forecast and Valuation:
The company takes hyaluronic acid as the core to build a platform enterprise for bioactive substances, and the raw material business is growing steadily driven by hyaluronic acid + other bioactive substances; The medical beauty business has been strategically adjusted for 21 years, and its future performance needs to be released. Functional skin care products are strong. With effective publicity investment, brand awareness continues to improve, and all brands are expected to maintain rapid growth. It is expected that the company’s revenue in the 21st-23rd years will be 4.95 billion yuan, 7.03 billion yuan and 9.16 billion yuan respectively, with an increase of 88%, 42% and 30% at the same time; The net profit attributable to the parent company was 780 million yuan, 1.10 billion yuan and 1.55 billion yuan respectively, with an increase of 21%, 41% and 41% at the same time. The current market value corresponds to pe75, 53 and 38x. The company maintains a global leading position in the field of hyaluronic acid. It has become a hot spot in the market of functional skin care. It leads the market with R & D and innovation, has rich reserve products, is firmly optimistic about the long-term development potential and maintains the “buy” rating.
Risk warning: the progress of R & D and registration of new products is less than expected; Loss of core personnel or technology leakage; B-end or C-end competition intensifies; Outbreak or other black swan events affecting the consumption environment.
