\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Conclusions and suggestions:
Performance summary:
It was announced that the annual revenue was 4.948 billion, a year-on-year increase of 87.93%, and the net profit was 782 million, a year-on-year increase of 21.13%. If the impact of share based payment was excluded, the annual net profit was 868 million, a year-on-year increase of 34.33%. Based on this calculation, 4q achieved a revenue of 1.94 billion, a year-on-year increase of 86.8%, and recorded a net profit of 230 million, a year-on-year increase of 9%. The performance is consistent with the previous express.
It is announced that the revenue is expected to reach 640 million from January to February 2022, with a year-on-year increase of 55%.
Dividend scheme: cash dividend of 4.9 yuan per 10 shares, with a dividend rate of 0.44%.
The revenue of “four-wheel drive” company increased rapidly. In 2021, the company’s businesses developed smoothly, and its competitive strength and influence continued to improve:
1) the raw material business realized a revenue of 905 million, with a year-on-year increase of 28.6%. Among them, the revenue growth rate of pharmaceutical and cosmetic products exceeded 15% by seizing the opportunity of competitors’ withdrawal and actively developing new users. In the food business, the company took the lead in China’s trial production with many years of overseas sales experience, with a revenue growth rate of more than 36%, and the revenue of other bioactive substances increased by 120% year-on-year, Through continuous research and development, the company will continue to launch new products, and the prototype of raw material platform has been realized. In terms of production capacity, the company’s overall production capacity of hyaluronic acid is 470 tons. The main construction of Tianjin plant will be completed in mid June 2021, and it is expected to add 300 tons of production capacity of hyaluronic acid and other bioactives.
2) the medical terminal business achieved a revenue of 700 million, an increase of 21.5% year-on-year. Among them, through the endorsement of scientific and technological strength, the company’s orthopaedic and ophthalmic products were promoted smoothly, with a total revenue of 193 million; Skin products revenue 504 million, an increase of 15.9%. In the medical beauty business, the company upgraded its strategy, perfected the construction of the “face younger” product system and built the internal organizational structure, enhanced the brand influence, made the “run” into the medical beauty head brand, launched the new products such as “imperial age twin needle” and “run to No. 5”. By the end of the year, the total sales of twin needles exceeded 250 thousand, becoming the first brand of the brand.
3) functional skin care products continued to break out, with an annual revenue of 3.32 billion, a year-on-year increase of 146.6%. The four brands of “runbaiyan”, “kwadi”, “mibeier” and “BM Jihuo” have formed a matrix and clear positioning, with an annual growth rate of more than 100%. Among them, the annual revenue of “runbaiyan” exceeded 1 billion for the first time. The four brands have successfully created seven single products with an income of more than 100 million, and the customer base is more stable. In addition, when the disposable products increased by 107%, the drainage effect was excellent. The income of other products increased rapidly, and the proportion of products such as masks and creams rose to 24% and 13% respectively.
4) 2021 is the first year of the company’s functional food business. Three major brands, namely “shuijiquan”, “black zero” and “Wuxiang corner”, have been launched, and a good start has been made.
In terms of expenses, due to the expansion of business scale, equity incentive, increase in R & D investment and other factors, the company’s expense rate remained high during the reporting period, and the comprehensive expense rate increased by 7.86 percentage points to 61.1% year-on-year, of which the sales expense rate increased by 7.49 percentage points to 49.24%, mainly due to the increase of salary caused by the increase of sales personnel and the high growth of functional skin care products, Performance incentives increased. In addition, marketing expenses such as advertising investment on online platforms also increased significantly. In the short term, the company’s business is in a period of rapid expansion, and the cost growth is inevitable. However, with the continuous improvement of brand influence, we believe that the cost-effectiveness ratio of the company will continue to improve.
From January to February 2022, the company expects to achieve a year-on-year increase of 55% in revenue, which is expected to mainly benefit from the continuous high growth of functional skin care products. Throughout the year, in the process of building a platform enterprise integrating the whole industrial chain of bioactive substances, the company’s businesses are expected to go to a higher level, and market development and consumer cultivation are expected to be further deepened. In the long run, the company’s R & D investment continues to increase. At present, it has 571 people and 239 research projects, laying a solid foundation for future development.
It is estimated that from 2022 to 2023, the net profit will be 1.1 billion and 1.4 billion respectively, with a year-on-year increase of 40.9% and 27% respectively. The EPS will be 2.30 yuan and 2.92 yuan respectively. The current share price corresponding to PE is 49 times and 39 times respectively, maintaining the investment proposal of “interval operation”.
Risk tip: the cost growth is higher than expected, and the product sales are lower than expected
