\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Events
The company released its annual report for 2021, realizing an operating revenue of 4.948 billion yuan, a year-on-year increase of 87.93%; The net profit attributable to the parent company was 782 million yuan, a year-on-year increase of 21.13%; Net profit deducted from non parent company was 663 million yuan, with a year-on-year increase of 16.74%. Cash dividend of 0.49 yuan per share (tax included).
Brief comment
With the company’s increased investment, the sales expense rate increased rapidly
In the fourth quarter alone, the company realized an operating revenue of 1.936 billion yuan, with a year-on-year increase of 86.77%. The non net profit deducted was 217 million yuan, with a year-on-year increase of 11.44%, and the non net profit margin deducted was 11.19%, with a year-on-year decrease of 7.56pct. The profit margin decreased more under the high increase of expenses. Throughout the year, the company’s sales expense ratio was 49.24%, an increase of 7.48 PCT year-on-year; The management expense ratio was 6.12%, with a year-on-year decrease of -0.02pct; The R & D expense rate was 5.75%, with a year-on-year increase of 0.39pct. Among the sales expenses, the advertising expenses increased by 114.74% year-on-year to 269 million yuan, and the online promotion service fees increased by 166.15% year-on-year to 1.313 billion yuan. The number of sales staff of the company also increased significantly from 734 in 2020 to 1329, and the average salary increased by 12.3%. In 2021 tiktok and other channels rose, and the company launched tiktok marketing. The channel of vibrato channels increased by about 14 percentage points to 17%. Tmall channel takes runbaiyan as an example. The proportion of channel talent live broadcasting decreased by about 8 percentage points to about 19% year-on-year, and the company’s self broadcasting ability gradually improved.
The revenue of functional skin care has increased significantly, and runbaiyan kuadi Gmv has exceeded one billion yuan
The annual revenue of functional skin care products of the company was 3.32 billion yuan, with a year-on-year increase of 146.57% and a gross profit margin of 78.98%. Among them, runbaiyan was 1.229 billion yuan, a year-on-year increase of 117.42%, kwadi was 979 million yuan, a year-on-year increase of 150.19%, mibel was 420 million yuan, a year-on-year increase of 111.12%, and BM muscle activity was 435 million yuan, a year-on-year increase of 286.21%. The four major brands of the company have achieved rapid growth. The company has built two brands of GMV over 1 billion, and 7 of the four brands have annual sales revenue of over 100 million. In the product mix of 2021, the proportion of the company’s secondary products dropped by 6 percentage points to about 41% on the basis of the 107% increase in revenue. The proportion in revenue was about 24% (up about 7 percentage points year-on-year) and 13% (up about 8 percentage points year-on-year). The differentiation of the four brands has been gradually reflected. The products of the “Bai Yan” sub products, the cream products of quart, the cream of Myer and the essence of muscle products, all set up a distinct market image.
The growth rate of raw materials and medical products is steady, and the policy will be conducive to the development of the regular army in the long run
In 2021, the raw material business realized a revenue of 905 million yuan, with a year-on-year increase of 28.62% and a gross profit margin of 72.19%. Among them, the gross profit margin of pharmaceutical grade hyaluronic acid raw materials remained at a high level of 87%. At present, the company’s overall hyaluronic acid production capacity is 470 tons. In June 2021, the main construction of Tianjin plant has been completed, and the production equipment has been commissioned successively. It is expected that 300 tons of hyaluronic acid and other bioactive substances will be added in the future. The revenue of medical terminal business was 700 million yuan, with a year-on-year increase of 21.54% and a gross profit margin of 82.05%. Among them, the income of skin medical products reached 504 million yuan, an increase of 15.88% over the same period last year. In May 2021, the company officially launched the “imperial age Gemini needle”. By the end of this year, more than 1000 pioneer medical institutions have been linked up, and a deep strategic cooperation with more than 300 influential institutions of the medical and American industry has been reached. In 2021, a total of more than 250000 units were sold, and the new products have achieved good results in half a year. At the same time, with the gradual clarification of the classification and definition of Shuiguang products by the State Drug Administration, Bloomage Biotechnology Corporation Limited(688363) Runzhi aqua products, as the third class medical device products that have been listed, will have policy advantages. The company expects that Shuiguang products are expected to fully enter the “mechanical third era” within three years.
Increase R & D investment and continue to build product barriers
In 2021, the company’s R & D expense rate increased by 0.39pct to 5.75%. With the formal operation of Tianjin project, the supporting of R & D personnel increased rapidly. The number of R & D personnel increased from 377 in 2020 to 571, accounting for 17.77% of the company’s total employees. There were 239 projects under research, with a year-on-year increase of 116,. At the same time, considering the high growth of the income of the cosmetics business, it is expected that the actual growth in basic research and raw material R & D will be more obvious. At the same time, the company has strengthened external cooperation in R & D, increased the cost of outsourcing, continued to build core barriers, and is giving full play to the R & D efficiency brought by the layout of the whole industrial chain.
Investment suggestion: the company announced that the revenue from January to February 2022 was 640 million yuan, with a year-on-year increase of 55%. It is expected that the growth of skin care business is still rapid. The company’s performance in 2021 has significantly exceeded the performance conditions of restricted stock incentive, and the incentive is fully bound. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 977 / 12.25 / 1.463 billion, corresponding to 55.3 times, 44.1 times and 36.9 times of PE, maintaining the “buy” rating.
Risk tip: inaccurate marketing positioning, excessive growth of channel cost, safety risk of medical and beauty business, etc.
