\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Core view
Event: the company announced that the total operating revenue from January to February 2022 was about 640 million yuan, a year-on-year increase of about 55%.
Functional skin care products continued the high boom, with a year-on-year increase of 55% in revenue at the beginning of 22. In 2021, the company’s functional skin care products increased by 146.57% year-on-year, the annual revenue of the sector was RMB 3.319 billion, the four major brands increased year-on-year, the re purchase rate of old customers increased, and the performance of large single products such as runbaiyan was brilliant. From January to February of 22, the high boom of functional skin care products continued and the growth was strong, boosting the overall revenue to increase by 55% year-on-year. In addition, the company has made steady progress in the four stages of “21, food and medical” and “functional raw materials”.
R & D continues to increase, and the release of production capacity drives performance growth. In the first three quarters of 21 years, the company’s R & D expenses increased by 101% year-on-year to 192 million yuan, the R & D expense rate increased by 0.4pct to 6.38% year-on-year, 89 new projects under research were added, the company’s R & D continued to increase, steadily promoted the “big single product” strategy, and the moat of product technology and brand is expected to continue to deepen. In terms of production capacity, the company’s fund-raising projects are basically put into operation, the main construction of Tianjin plant area is completed, the pilot transformation platform is basically completed, the construction of Hainan science and Technology Industrial Park is started, and the gradual release of production capacity is expected to drive the continuous growth of the company’s performance. The company’s strategy of “strengthening China and Taiwan” continues to be promoted, creating industry 4.0 and building a large operation system, and the organizational efficiency will continue to improve.
Profit forecast and investment suggestion: the company is a global leader in hyaluronic acid, focusing on R & D and innovation investment. In the first three quarters of the 21st century, R & D expenses doubled year-on-year. Under the “four-wheel drive” development strategy, the strategy of “big single product” and “strengthening the middle platform” promotes the rapid development of functional skin care products, the steady growth of raw materials and medical terminal business, and actively explore new tracks of functional food. The sales of functional skin care products grew strongly from January to February of 22, and the off-season is not light. We are optimistic about the fulfillment of the company’s high performance growth in 22 years and raise the company’s rating. It is estimated that the net profit attributable to the parent company in 21-23 years will be RMB 780 million, RMB 1.14 billion and RMB 1.47 billion respectively, and the corresponding PE will be 67, 46 and 35 times respectively. The company will be upgraded to “buy”.
Risk warning: the sales of new products are less than expected; The risk of intensified industry competition; The epidemic situation is repeated.
