\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Event: the company disclosed a brief report on the operation of the biomedical sector from January to February. From January to February 2022, the cosmetics sector realized a revenue of 220 million yuan, a year-on-year increase of 146.7%; The revenue of raw materials and additives reached 45 million yuan, a year-on-year increase of 12.4%.
War investment was successfully introduced, and resources were coordinated to help the cosmetics industry take off. In November 2021, the subsidiary Freda biology successfully introduced strategic investors. Tencent, Hangzhou Onechance Tech Corp(300792) and other war investment jointly subscribed for 15.38 million new shares, with a total shareholding ratio of 16.9% and a capital increase of 738 million yuan Hangzhou Onechance Tech Corp(300792) as a first-class operator and service provider in China, it is expected to be strongly empowered in operation and marketing and enhance the competitiveness of cosmetics business; Tencent is expected to strengthen cooperation with the company’s cosmetics business in private domain traffic operation.
Cosmetics build brand matrix, and the raw material production capacity continues to expand: 1) cosmetics sector: the main brands “Dr. yu’er” and “Yilian” are strongly out of the circle, and the sales volume is firmly in the forefront in the “double 11” and other activities, with a good growth trend; New brands such as yipahan and Shanyan accumulate strength, focus on subdivided fields, and war investment is expected to empower in multiple dimensions of brand, product and marketing. From January to September 2021, the revenue of cosmetics was 993 million yuan, a year-on-year increase of 174.58%; Among them, Dr. yu’er achieved an income of 488 million; Yilian achieved a revenue of 427 million. From January to February 2022, the rapid development momentum of cosmetics will not decrease. 2) Raw materials: the business of raw materials and additives has a good momentum of development. The focus of Freida is mainly cosmetic grade and food grade hyaluronic acid. The annual production capacity of hyaluronic acid raw materials is 420 tons. Tianzi Yuzhuo, hyaluronic acid and other oral sodium hyaluronate products have been launched one after another; A new medical grade sodium hyaluronate project with an annual capacity of 520 tons was added, and the capacity continued to expand. From January to September 2021, the revenue of raw materials and additives reached 176 million, with a year-on-year increase of 12.4% from January to February 2022.
Profit forecast and investment suggestions: the company will deepen the strategy of promoting large-scale health industry, driven by biomedicine and ecological health. The cosmetics sector has developed rapidly and become a new performance growth point of the company. The main brand has broken the circle and developed vigorously, and the new brand has accumulated strength; The production capacity of sodium hyaluronate in raw material business is the world’s leading, and new production capacity continues to be released. It is estimated that the net profit of the company from 21 to 23 years will reach 750 million yuan, 900 million yuan and 1.13 billion yuan respectively, and the corresponding PE will be 14, 11 and 9 times respectively. “Overweight” rating is given for the first time.
Risk warning: the sales of new products are less than expected; The risk of intensified industry competition; Macroeconomic downside risks.
