Bloomage Biotechnology Corporation Limited(688363) (688363)
Key investment points
Event: France CytoCare Sili obtained the approval of medical devices in Hainan.
1) Approved content: on December 26, 2001, Sili held a theme press conference in Hainan's own trade pilot zone, at which it was announced that Hainan Provincial Drug Administration had approved French CytoCare Sili kinetic energy 516 and 532 as clinical urgently needed medical devices.
2) Policy basis: the "trial first" policy of Hainan Boao music city accelerates the approval of medical devices and drugs in the pilot area, and the innovative products that have obtained the medical device registration certificate abroad are used as special needs of imported medical devices urgently needed in clinic. According to the regulations on the administration of clinical urgently needed imported medical devices in Boao Lecheng International Medical Tourism pilot area of Hainan free trade port, the clinical real-world data generated by the use of clinical urgently needed imported medical devices in the pilot area, which meets the relevant requirements of China's medical device registration and declaration, can be used to apply for imported product registration.
3) Approved scope of use: Sili's two products can be used first in Lecheng pilot area. They can be introduced into the dermis through the sterile skin breaking operation of medical and beauty institutions, correct the skin aging process from the muscle bottom, and healthily moisturize, nourish and brighten the skin.
Take the lead in the layout of skin rejuvenating kinetin + scalp beauty products.
Revitacare, a famous high-end anti-aging laboratory brand, focuses on the solution of facial aging and hair problems based on the application of hyaluronic acid in the field of scientific beauty. Sili was established in 2003 and acquired 100% of its equity with about HK $203 million in 17 years Bloomage Biotechnology Corporation Limited(688363) . The main products include:
1) CytoCare sericin: targeting the rejuvenation of skin; 516 and 532 obtained the European CE safety certification in 2008. Up to now, they have 13 years of clinical application history, have won many industry awards in the field of skin rejuvenation, and are sold in more than 40 countries around the world.
2) Haircare Sili Little Red Riding Hood: locate the scalp for maintenance and reduce hair damage; It has obtained the EU class III medical device registration certificate in 14 years and has a 7-year clinical application history in Europe. At present, it has entered Hainan for pilot test and become the first scalp hair plastic product in China.
High end and compliant water light and kinetic energy products are scarce in the market, and the policy is becoming stricter and beneficial to the "regular army". Compliance: the first approved compliant water light needle products are expected to enjoy huge market dividends. Shuiguang / kinetin products are mainly aimed at moisturizing and anti-aging. They are entry-level products of medical beauty. In November, the medical device standard management center of the State Drug Administration issued a notice on soliciting the classification catalogue of medical devices (adjustment opinions), which once again emphasized that sodium hyaluronate solution for injection, i.e. Shuiguang needle, should be supervised as class III devices. At present, the common "water light products" in the market include 1) makeup brand products: such as filoga, which are explicitly prohibited from injection; 2) Illegal skin breaking injection of class I or class II equipment; 3) Class III mechanical cross indication is applicable. With the tightening of the policy, it is expected that the compliant Shuiguang products will continue to benefit in the future.
High end: Sili kinetic energy has two core technologies of "ct50" + "SRN". The products are effective and positioned at the high end. "Ct50" is hyaluronic acid + 50 active ingredients, including 21 amino acids, 11 vitamins, 14 minerals, 2 nucleic acids, 1 coenzyme and 1 antioxidant, which can improve skin quality, healthy and maintain skin. "SRN" slow release grid technology can prolong the release rate of active substances in the skin and prolong the maintenance time of the effect. According to the official account of WeChat public, clinical application data show that Sili kinetic energy has the effect of reducing fine lines and wrinkles, optimizing skin quality and improving skin hydration.
Bloomage Biotechnology Corporation Limited(688363) the science and Technology Industrial Park has started, and Hainan will be the starting point for Sili China's approval and mass production. On December 13, 20, the company officially signed a strategic cooperation agreement with Haikou national high tech Zone to build Bloomage Biotechnology Corporation Limited(688363) science and Technology Industrial Park in three phases. On July 13, 21, the science and Technology Industrial Park started in Hainan free trade port. The company will establish China headquarters and international business center of Sili, France, introduce production lines and carry out production and sales in the global market.
Profit forecast and Valuation:
With hyaluronic acid as the core, the company has built a platform enterprise for bioactives, and the raw material business has grown steadily driven by hyaluronic acid + other bioactives; Medical beauty business is in the first year of strategic development, and its future performance needs to be released. Functional skin care products are excellent. With effective publicity investment, brand awareness continues to improve, and various brands are expected to maintain rapid growth. We expect the company's revenue in the 21st-23rd years to be 4.62 billion yuan, 6.64 billion yuan and 8.67 billion yuan respectively, with an increase of 76%, 44% and 31% at the same time; The net profit attributable to the parent company was RMB 800 million, RMB 11.1 billion and RMB 1.54 billion respectively, with the same increase of 23%, 40% and 38%. The current market value corresponds to PE94, 67 and 49x. The company has maintained a global leading position in the field of hyaluronic acid. It has become a hot spot in the market of functional skin care, led the market with R & D and innovation, abundant reserve products, firmly optimistic about the long-term development potential and maintained the "buy" rating.
Risk warning: the progress of R & D and registration of new products is less than expected; Loss of core personnel or technology leakage; B-end or C-end competition intensifies; Epidemic situation or other black swan events affecting the consumption environment.
