\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Event: the company released the annual performance express of 2021, and it is expected to achieve a revenue of 4.948 billion yuan in 2021, an increase of 87.93% at the same time; The net profit attributable to the parent company is expected to be 782 million yuan, an increase of 21.13% at the same time; It is expected to realize a net profit of 663 million yuan, an increase of 16.74%. Quarterly, the revenue of 21q1-q4 company increased by 111% / 100% / 66% / 87% and the net profit attributable to the parent company increased by 41% / 31% / 14% / 9% respectively. Overall, the company's revenue growth in 2021 exceeded market expectations, and the profit growth basically met market expectations.
Raw materials and medical terminals grew steadily, functional skin care grew rapidly, and functional food made a good start. (1) Raw materials: in 2021, we expect to achieve an income of 900 million yuan, an increase of 28.6%, mainly due to the steady growth of pharmaceutical grade and cosmetic grade raw materials, and the substantial growth of food grade and other raw materials; (2) medical terminal: in 2021, we expect to achieve about 700 million yuan in revenue and increase by 20%~25%. Last year, we completed the establishment of the organizational structure and the channel system. The explosive product "imperial age twin needle" was successfully promoted after being approved in May. We also expect to add the products of doll needle and run to No. 5 in the year. (3) Functional skin care: in 2021, we expect to achieve a revenue of 3.32 billion yuan, an increase of 146.57% at the same time. Last year, in the cosmetics category, the company created "third generation of water moistening and throwing", "Qudi light age kinetic energy cream", "Mir blue bandage mask", "muscle live brown rice essence water" and so on. We expect that next year, both runbaiyan and kuadi are expected to reach an income of more than 1 billion yuan, and their cost rate is expected to be gradually optimized. (4) Functional food: launched the first functional food brand "black zero", released "hyaluronic acid small red bottle", GABA sleep drink and other products, and functional food won a good start.
Benefiting from the "pilot first" policy, Sili's core products were approved in Hainan pilot zone. On December 26, 2021, the company's Sili products held a press conference in Hainan Free Trade Zone, at which it was announced that Hainan Provincial Drug Administration had approved the import of CytoCare Sili kinetin 516 and 532 as clinical urgently needed medical devices. The approval mainly benefited from the "first try" policy of Boao Music City in Hainan, that is, formulating incentive policies to speed up the registration and approval of overseas listed medical devices. Sili's 516 and 532 kinetin are the star products of the brand. They obtained the CE certification of the EU as early as 2008 and belong to the skin rejuvenation products. We believe that the approval of Sili core products in Hainan pilot area is expected to accumulate valuable clinical data and promote the national listing process of products.
Profit forecast and investment rating: the company is a leader in the global hyaluronic acid industry. The raw material business has developed steadily and continues to extend to the fields of terminal medical devices, cosmetics and food. The integration advantage under "four-wheel drive" is stable. Combined with the promotion of Q4 businesses, we adjusted the net profit attributable to the parent company from 8500, 1093 and 1389 million yuan to 782, 980 and 1227 million yuan from 2021 to 2023, with a simultaneous increase of 21.1%, 25.3% and 25.2%. The current market value corresponds to PE of 75X, 60x and 48x, maintaining the "buy" rating.
Risk warning: R & D progress may be less than expected; The market promotion of new products may be less than expected.
