\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Event: the company released the financial annual report of 2021, and the company realized an operating revenue of 4.948 billion yuan / yoy + 87.93%; The net profit attributable to the parent company is 782 million yuan / yoy + 21.13%; The net profit deducted from non profit is 663 million yuan / yoy + 16.74%. Excluding the impact of share based payment, the net profit attributable to the shareholders of the listed company is 868 million yuan / yoy + 34.33%. The annual revenue was higher than the consensus expectation of the market, and the net profit was in line with the expectation. The annual comprehensive gross profit margin was 78.07%, which was at a relatively high level, with a net profit margin of 15.67%. Single Q4 achieved a revenue of 1.936 billion yuan / yoy + 87%, and the growth of single quarter revenue was accelerated compared with Q3; The net profit attributable to the parent company is 227 million yuan / yoy + 9%.
The business of functional skin care products increased year-on-year, the matrix of large single products was formed, and the proportion of overseas platforms increased: in 21 years, the revenue of functional skin care products was 3.3 billion yuan / yoy + 146.57%, and the gross profit margin was 78.98% / yoy-2.90pt, mainly due to the inclusion of transportation expenses in operating costs in 21 years, accounting for about 3.19% of the revenue. In the 21st year, the revenue of runbaiyan / kuadi / mibeier / BM muscle activity increased by 117.42% / 150.19% / 111.12% / 286.21% respectively year-on-year. The company has identified four major brand positioning, and the four major brands have built 2021 core stars of their large single products and derivative series in 2021, including the barrier repair of Reyan Bai Yan, the water run series, the CT50 series of BM, the brown rice series, the powder water and the blue bandage mask. The company continued to expand its competitive advantage in other categories on the basis of consolidating the leading position of the sub thrower industry. In 2021, the number of disposable products reached +107% year-on-year, representing a year-on-year decline in the proportion of revenue to about 41% (about 6%). The proportion of masks and creams and lotion products increased significantly, accounting for 24% of the revenue (up 7%) and 13% (up 8%). Channel, except tiktok, increased the proportion of other online platforms, including the channel channel accounts for a significant increase of about 14%, reaching 17%, and the Tmall channel master of Tmall ran down to 19% (down 8%). In the first year of the company’s offline channel layout, runbaiyan opened 3 physical stores and kuadi developed more than 200 offline franchise stores.
The medical terminal business grew steadily and the upgrading of new products can be expected in the future: the company’s medical terminal business realized a revenue of 700 million yuan, with a year-on-year increase of 21.54%, accounting for 14.15% of the company’s main business revenue and a gross profit margin of 82.05%. Among them, the revenue of skin medical products is 504 million yuan / yoy + 15.88%; Orthopaedic injection products achieved a revenue of 123 million yuan / yoy + 37.08%; Other products achieved a total revenue of 72 million yuan / yoy + 42.70%. Last year, the company completed the restructuring of its organization and established a channel cooperation system. In May 2021, the company officially launched the “imperial age twin needle” explosive project. In 2021, the company sold more than 250 thousand products, and the new product went public for six months, and achieved good results. At the end of 2021, the company launched the double intersection product “Runzhi No. 5”, which is suitable for deep injection, can play the effect of facial lifting, and has the advantages of strong support and long maintenance time; Runzhi Aqua product is one of the few category III medical device water light products that have been listed. The company’s water light products are expected to fully enter the “three machine era” within three years; At the same time, the company is developing two single-phase products, which are about to complete clinical trials. It is expected to be approved in 22 years, and the growth can be expected in the future.
The growth rate of raw material business increased significantly, and the income of other active substances increased significantly: the annual revenue of raw material business reached 900 million yuan, with a year-on-year increase of 28.62%, which increased significantly compared with last year, accounting for 18.29% of the company’s main business revenue. The sales of pharmaceutical grade, cosmetic grade and food grade hyaluronic acid raw materials were 252 million / yoy + 15.83%, 391 million / yoy + 15.98% and 108 million / yoy + 36.85% respectively; Income from other bioactive substances is 154 million / yoy + 120.33%. In 2021, the overall gross profit margin of raw material business was 72.19%, and the gross profit margin of pharmaceutical grade hyaluronic acid raw materials remained at a high level of 87%.
The functional food business of the company has made a good start: the functional food business of the company has been steadily promoted, and three major brands have been launched in 21 years, including hyaluronic acid water brand “shuijiquan”, hyaluronic acid food brand “black zero” and hyaluronic acid fruit drink brand “Wuxiang corner”. The brand pattern has been initially opened, and the functional food business has made a good start. A number of new 2.0 series products aimed at the health problems of people staying up late are under development and are expected to be launched in 2022.
The company increased marketing investment and continued to carry out R & D activities: in 21 years, the company’s sales expense rate was 49.24% / yoy + 7.49pt, and the management expense rate was 6.12% / yoy-0.03pt; The R & D expense rate is 5.75% / yoy + 0.39pt. The change of sales expenses was mainly due to the increase of staff salary caused by the increase of sales personnel in order to meet the needs of the company’s sales business expansion during the reporting period. At the same time, the sales revenue increased significantly, the performance of functional skin care products increased rapidly, and the performance reward of sales personnel increased. In the past 21 years, the company Wuxi Online Offline Communication Information Technology Co.Ltd(300959) continued to publicize the brand concept and image, and created a national brand. The advertising and marketing expenses and market development expenses increased. The increase in R & D investment is mainly due to the company’s continuous technical research and product research on medical devices, functional skin care products, functional foods, drugs and raw materials in related fields. Adhering to the long-term principle, the company consolidated the barriers to competition and moat with its R & D strength. The R & D investment exceeded 280 million yuan, with a year-on-year increase of more than 100%. The number of R & D personnel was 571, with a year-on-year increase of 194, 239 projects under research, a year-on-year increase of 116, and 89 authorized invention patents, with a year-on-year increase of 40.
Investment suggestion: the company is the leader of the global hyaluronic acid industry, with outstanding advantages in the layout of the whole industrial chain. The four-wheel drive strategy opens the space for sustainable growth. Under the effective publicity investment, the proportion of re purchase of skin care products is expected to increase. According to the company’s annual report, we estimate the company’s revenue of 7.158 billion, 9.162 billion and 11.499 billion in 20222024, and the net profit attributable to the parent company is 980 million yuan, 1.32 billion yuan and 1.73 billion yuan, with a year-on-year increase of 25.2%, 35.1% and 30.6% respectively, corresponding to 55x / 41x / 31x respectively in 22-24 years, maintaining the “recommended” rating.
Risk tips: repeated epidemic risk, increased industry competition risk, new product promotion is not as expected, etc
