\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Key investment points
Event: the company issued the annual report of 2021. In 2021, the revenue reached 4.95 billion yuan, a year-on-year increase of + 87.9%; The net profit attributable to the parent company was 780 million yuan, a year-on-year increase of + 21.1%; Deduct the net profit not attributable to the parent company of 663 million yuan, a year-on-year increase of + 16.7%. The company plans to distribute a cash dividend of RMB 4.90 per 10 shares. The company expects to distribute a total cash dividend of RMB 235 million, accounting for 30.06% of the net profit attributable to the parent company. Quarter by quarter, the company’s revenue in Q1-Q4 single quarter increased by 111% / 100% / 66% / 87% respectively, the net profit attributable to the parent company increased by 41% / 31% / 14% / 9% respectively, and the deduction of non net profit increased by 48% / 19% / 1% / 11% respectively.
The gross profit margin of the company is generally stable, and the sales expense rate has increased due to business expansion and incubation. In 2021, the company’s gross profit margin was 78.1%, a year-on-year decrease of 3.3pct, and the gross profit margin was generally stable. From the expense side, the company’s sales / management / R & D expense ratio in 2021 was 49.2% / 6.1% / 5.7% respectively, with a year-on-year change of 7.4pct/0.0pct/0.3pct respectively. Factors such as the first year of the upgrading of medical beauty strategy and the incubation of functional food have increased the sales expense rate.
“Four in one” has been promoted smoothly, and the growth rate of functional skin care has continued to be strong. The company’s business covers raw materials, medical terminals, functional skin care products and functional food. In 2021, raw materials / medical terminals / functional skin care products achieved revenue of RMB 900 / 700 / 3.32 billion respectively, with a year-on-year increase of 28.6% / 21.5% / 146.6% respectively, and the proportion of revenue was 18% / 14% / 67% respectively. (1) Raw materials: the growth rate is relatively fast. After the completion of the Tianjin plant, there is more room for capacity improvement, and the innovative raw materials increased by 120% at the same time. (2) In 2021, the “Yuanguang” medical products will continue to build and upgrade the “Yuanguang” medical products and facial filling products. (3) Functional skin care products: in 2021, the four major brands of runbaiyan, kwadi, mibel and BM have more than doubled the growth of muscle activity, diversified channel layout and attached importance to building star large single products. (4) Functional food: functional food started well in the first year and launched three functional food brands, including hyaluronic acid water brand “shuijiquan”, hyaluronic acid food brand “black zero” and hyaluronic acid fruit drink brand “never think corner”.
Profit forecast and investment rating: the company is a leader in the global hyaluronic acid industry. The raw material business has developed steadily and continues to extend to the fields of terminal medical devices, cosmetics and food. The integration advantage under “four-wheel drive” is stable. Considering the good development of various sectors of the company in 21 years, we raised the net profit attributable to the parent company from 980 / 1227 million yuan to 981 / 1232 million yuan in 202223. It is estimated that the net profit attributable to the parent company in 2024 will be 1.520 billion yuan, and the current market value corresponds to 55x / 44x / 36x PE in 202224, maintaining the “buy” rating.
Risk tip: increased competition, food safety, industry regulatory risks, product promotion is less than expected.
