\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
The company disclosed in the annual report of 2021 that the company’s revenue in 2021 was 4.948 billion yuan (+ 87.93%), the net profit attributable to the parent was 782 million yuan (+ 21.13%), the net profit not attributable to the parent was 663 million yuan (+ 16.74%), and the net profit attributable to the parent excluding the impact of share based payment was 868 million yuan (+ 34.33%), and the performance growth was in line with the expected period. Among them, single Q4: the income is 1.936 billion yuan (+ 86.77%), the net profit attributable to the parent is 227 million yuan (+ 9.01%), and the net profit not attributable to the parent is 217 million yuan (+ 11.44%).
Revenue split: functional skin care products continued to double growth.
① raw material business: revenue of 905 million (+ 28.62%), accounting for 18.29%, including 252 / 391 / 108 million of pharmaceutical grade, cosmetic grade and food grade ha, yoy + 15.82% / 15.98% / 36.85%, and 154 million (+ 120.33%) of other bioactive substances. In terms of regional structure, the sales revenue of exported raw materials is 351 million yuan, accounting for about 39%.
② medical terminal business: revenue of 700 million (+ 21.54%), accounting for 14.15%; Among them, the revenue of skin medical products / orthopaedic injection products was 504 million / 123 million, yoy + 15.88% / 37.08%, and the revenue of other products was 72 million (+ 42.70%).
③ functional skin care products business: the revenue is 3.320 billion (+ 146.57%), accounting for 67.1%, of which the revenue of runbaiyan / Cuddy / mibel / BM muscle activity is 12.3/9.8/4.2/430 million and yoy + 117.42% / 150.19% / 111.12% / 286.21% respectively.
④ other business income is 23.28 million (+ 272.5%).
Profit split:
① the company’s comprehensive gross profit margin was 78.06%, a year-on-year decrease of about 3.3pcts, and the gross profit margins of Q1 / Q2 / Q3 / Q4 were 78.70% / 77.39% / 77.58% / 78.49% respectively. Among them, the gross profit margin of raw materials / medical terminals / functional skin care products / other businesses was 72.19% / 82.05% / 78.98% / 55.27% respectively, with a year-on-year decrease of -5.9/2.5/2.91/2.46pcts. The comprehensive and subdivided gross profit margin generally decreased, mainly due to the company’s inclusion of transportation expenses in operating costs.
② the company’s net profit margin attributable to the parent company was 15.8%, a year-on-year decrease of 8.7pcts, and the net profit margins of Q1 / Q2 / Q3 / Q4 were 20% / 18% / 18% / 12% respectively. The decline of the company’s net profit margin was mainly related to the increase of sales expense rate caused by the rapid growth of skin care products.
③ expense ratio: the company’s sales expense ratio is 49.24, yoy + 7.49 PCTs, management expense ratio is 11.87%, yoy + 0.36 PCTs, R & D expense ratio is 5.75%, yoy + 0.39 PCTs, and the increase of sales expense is mainly due to the rapid growth of the performance of functional skin care products, the increase of sales staff performance rewards and the significant increase of promotion service expenses in e-commerce platforms and new media channels.
Business highlights:
① the raw material business maintained steady growth, other raw materials achieved 120% revenue growth, and the pattern of bioactive platform company was further formed. 2021 is the first year of hyaluronic acid foodization. The company takes the lead in trial production in China and provides customers with complete product solutions containing hyaluronic acid and other bioactive substances. In 2022, the raw materials sector will focus on the expansion of overseas markets and the development of new customers in China, and focus on strengthening independent research and development of new products.
② based on the advantages of Huaxi brand and platform, the medical terminal business has achieved steady growth. 2021 is the first year of the strategic upgrading of medical beauty business. The sales channels of orthopedic products have been further expanded and increased steadily. PrP products have achieved explosive growth. In the future, with the development of application scenarios, it is expected to become the next popular product; 2021 is the first year of strategic upgrading of the company’s medical beauty business. The company has upgraded the organizational structure and adjusted the strategy of the medical beauty business, and the product pipeline planning has been basically clear.
③ functional skin care products are increasing rapidly. The company has clearly planned the R & D technology route in the next 2-3 years and deepened the differentiated positioning of four major brands: runbaiyan is the leader of hyaluronic acid skin care technology, kwadi focuses on the frozen age anti-aging market, and BM muscle activity focuses on the two-dimensional R & D route of “customized active ingredients” and “targeted delivery control technology”; Mibel market segments for sensitive muscle groups.
④ the functional food business has made a good start. 2021 is the first year of the development of the company’s functional food business. The company has launched three brands, including hyaluronic acid water brand “shuijiquan”, hyaluronic acid food brand “black zero” and hyaluronic acid fruit drink brand “Wuxiang corner”, and the brand pattern has been initially opened.
Investment suggestion: buy rating
The company has excellent R & D ability, continues to make efforts in the high prosperity cosmetics and medical beauty track, and the advantages of upstream raw materials provide quality endorsement for the downstream. The industry boom is superimposed and the competitiveness is outstanding. We continue to be optimistic about the company’s long-term growth driven by raw materials, medical treatment, skin care and food. It is predicted that the net profit attributable to the parent company from 2022 to 2024 will be 1.097/14.47/1.879 billion yuan (the previous prediction is that the net profit attributable to the parent company from 2021 to 2023 will be 8.12/11.38/15.03), with a year-on-year growth rate of 40% / 32% / 30%, corresponding to pe49 / 37 / 29x from 2022 to 2024, maintaining the “buy” rating.
Risk tip: the market space is less than expected, the product approval results and progress are less than expected, and the industry competition is intensified
