\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Event: the company released the performance express for 2021. During the reporting period, the company achieved an operating revenue of 4.95 billion yuan, a significant year-on-year increase of 87.93%, and a net profit attributable to the owner of the parent company of 780 million yuan, a year-on-year increase of 21.13%; Deduct non net profit of 660 million yuan, with a year-on-year increase of 16.74%; The annual revenue was higher than the consensus expectation of the market, the net profit was in line with the expectation, and the annual net profit attributable to the parent company was 15.8%. It is estimated that the revenue of single Q4 will reach 1.936 billion yuan, with a year-on-year increase of 87%. The revenue growth of single quarter is faster than that of Q3; The net profit attributable to the parent company was 227 million yuan, a year-on-year increase of 9%.
The business of functional skin care products increased year-on-year, and the raw materials and medical terminals increased steadily: the company’s various businesses were promoted smoothly, the business of functional skin care products increased year-on-year, the business of raw materials and medical terminals grew steadily, and the business of functional food successfully incubated new brands and expanded the market step by step in 21 years.
1) functional skin care products business: the annual revenue is expected to be 3.3 billion yuan, with a year-on-year increase of 146.57%. In the past 21 years, Q3 of functional skin care products has increased by about 120% year-on-year, and the “double 11” four brands have increased significantly year-on-year. Kuadi “double 11” has sold 530 million yuan in all channels, and runbaiyan has become the first billion level skin care brand of the company. The support of science and technology is strong, and the sales of new products are bright; the re purchase contribution of old users has increased, and the contribution of large single products is outstanding.
2) medical terminal business: it is expected that the annual revenue will be around 700 million yuan, an increase of about 25% over the same period last year. Last year, the company completed the restructuring of its organization and established a channel cooperation system. “Royal age twin needle” was approved to be listed in May smoothly. In December, the 516 and 532 of Sili kinetic energy products were approved by clinical urgent medical devices, and the business growth could be expected in the future.
3) raw material business and functional food business: the annual revenue of raw material business is expected to reach 900 million yuan, with a year-on-year increase of about 28.62%, which is significantly higher than that of last year. The main reason is the steady growth of pharmaceutical grade and cosmetic grade raw materials, and the substantial growth of food grade raw materials and other raw materials; The functional food business has been steadily promoted. In 21 years, the first functional food brand “black zero”, hyaluronic acid water drink brand “shuijiquan”, hyaluronic acid fruit wine brand “never think corner”, etc. have been gradually launched.
The company increased R & D investment and consolidated long-term competition barriers: while maintaining a high rate of income growth, the company attached great importance to the basic capacity-building necessary for long-term sustainable growth, including 1) further improving the company’s R & D strength and significantly increasing R & D investment. 2) Forward looking layout of production capacity to reserve space for future sales growth. 3) Continuously improve the brand strength of functional skin care products and build a national brand. 4) Systematically train talents, optimize and upgrade the organizational structure, build industry 4.0 and build a large operation system. Compared with the above strategic investment, the growth rate of the company’s operating revenue in 2021 is higher than that of the operating profit in the same period. In the 21st year, the company’s medical terminal business and functional skin care brand were in the construction stage. It is expected that the investment in marketing, R & D and other aspects will increase, and the net interest rate will decline.
Investment suggestion: the company is the leader of the global hyaluronic acid industry, with outstanding advantages in the layout of the whole industrial chain. The four-wheel drive strategy opens the space for sustainable growth. Under the effective publicity investment, the proportion of re purchase of skin care products is expected to increase. According to the company’s latest express, we raised the revenue from 2021 to 2023 to 4.95 billion, 7.05 billion and 9.73 billion, and fine tuned the net profit attributable to the parent company to 780 million yuan, 1.04 billion yuan and 1.43 billion yuan, with a year-on-year increase of 21%, 33% and 38% respectively, corresponding to 75X / 57x / 41x respectively in 21-23 years, maintaining the “recommended” rating.
Risk tips: repeated epidemic risk, increased industry competition risk, new product promotion is not as expected, etc
