\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Performance review
On February 25, 2022, the company released the performance express of 2021. In 2021, the company realized revenue of 4.948 billion yuan (+ 88%), net profit attributable to parent company of 782 million yuan (+ 21%), net profit not attributable to parent company of 663 million yuan (+ 17%);
Quarter by quarter, 2021q4 company achieved revenue of 1.936 billion yuan (+ 87%), net profit attributable to parent company of 227 million yuan (+ 9%) and net profit not attributable to parent company of 216 million yuan (+ 12%).
Business analysis
Adhere to building the company's long-term competitive advantage and constantly optimize profitability. The company attaches great importance to the basic capacity construction necessary for long-term sustainable growth and continues to significantly increase R & D investment Forward looking layout of production capacity to reserve space for future sales growth; Continuously improve the brand strength of functional skin care products and build a national brand; Systematically train talents, optimize and upgrade the organizational structure, build industry 4.0 and build a large operation system. The company adheres to multiple strategic layouts, and the growth rate of operating revenue in 2021 is higher than that of operating profit in the same period.
The raw material business creates a good situation and is optimistic about the long-term development trend. The company's raw material business increased by about 28.62% year-on-year, with a significant increase over last year. The company's high-quality raw materials and pharmaceutical products still have strong sales support.
Functional skin care products are fully developed, and the profit growth performance is good. The sales revenue of functional skin care products increased by about 146.57% year-on-year, which is the main driving force of the company's performance growth. 1) The support of scientific and technological power to product power has been further promoted, the ability of product innovation has been continuously demonstrated, and more new products have been launched during the reporting period; 2) The re purchase contribution of old users has increased, and the four major brands of runbaiyan, kuadi, mibeier and Jihuo have formed a large single product matrix; 3) The national brand building has been quite effective, and the brand strength has been significantly improved.
Profit adjustment and investment suggestions
We are optimistic about raw materials, medical beauty and functional skin care products. Due to the need to invest in brand construction, we have lowered the profit expectation of 20212023 by 12%, 18% and 22%. It is expected that the company will realize the net profit attributable to the parent company of 782, 994 and 1254 million yuan in 20212023, with a year-on-year increase of 21%, 27% and 26% respectively. Maintain the "buy" rating.
Risk tips
Risk of substitution of new materials and technologies; New product R & D risk; New product registration risk; Risk of core personnel turnover; Risk of decline in net interest rate; The risk of intensified industry competition;
