\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Core view
Event: the company announced its performance in 2021, with a revenue of 4.948 billion yuan, a year-on-year increase of + 87.93%; The net profit was 782 million yuan, a year-on-year increase of + 21.13%; Excluding the impact of share based payment, the net profit was 868 million yuan, a year-on-year increase of + 34.33%. Four wheel drive grew steadily, and functional skin care products led to high performance. (1) Raw material business: the revenue in 2021 increased by 28.62% year-on-year to 905 million yuan. The company has actively explored the Chinese market and maintained rapid growth in pharmaceutical and cosmetic ha. In the first year of hyaluronic acid foodization, the company’s food grade ha achieved rapid development. (2) medical terminal business: revenue grew by 21.54% to 700 million yuan over the same period last year. The company launched the “Royal age Gemini needle” in May 2021, and accumulated more than 250 thousand sales by the end of this year. It reached strategic cooperation with more than 300 medical and American institutions and linked 1000 super vanguard medical institutions to create explosive products. In addition, the company launched the two-way cross-linking product “Runzhi No. 5” at the end of 2021, and two single-phase products under development are about to complete clinical trials, which are expected to be approved in 2022. The company deeply cultivates hyaluronic acid products, continuously improves the anti-aging product matrix of all parts and all levels, and expands the traditional advantages of the company. (3) Functional skin care products: the revenue increased by 146.57% year-on-year to reach 3.320 billion yuan. The four major brands have passed the initial growth period and entered the stage of large-scale. The revenue of runbaiyan / kwadi / mibel / BM muscle activity increased by 117% / 150% / 111% / 286% year-on-year respectively, and the annual sales of runbaiyan single brand exceeded 1 billion yuan. The company has made remarkable achievements in multi brand strategy, differentiated positioning of four brands, clear R & D technology route planning in the next 2-3 years and broad growth space. (4) Functional food: launched three major brands, hyaluronic acid water “shuijiquan”, hyaluronic acid food “black zero” and hyaluronic acid fruit drink “dream corner”, and the functional food business has made a good start.
The gross profit margin remained at a high level, the marketing investment increased, and the sales rate increased. The gross profit margin of the company decreased by 3.3pct to 78.1% in 2021, and remained at a high level as a whole. Among them, the gross profit margin of functional skin care products business decreased by 2.90 PCTs year-on-year to 78.98%, mainly because the transportation expenses were included in the cost. In terms of expenses, due to the substantial increase in the company’s online promotion fees and marketing investment, the sales rate increased by 7.48pp to 49.24%; The management rate decreased by 0.02pp to 6.12%; The R & D rate increased by 0.39pp to 5.75%, mainly due to the growth of R & D related to medical devices, functional skin care products and food.
Profit forecast and investment suggestion: the company is a global leader in hyaluronic acid and pays attention to R & D and innovation investment. Under the strategy of “big single products” and “strengthening the middle platform”, the functional skin care track is growing rapidly, and the company’s brand effect will become more and more obvious in the future. In addition, under the “four-wheel drive” development strategy, the company’s raw materials and medical terminal business are growing steadily, and actively explore new functional food tracks. It is estimated that the net profit attributable to the parent company in 22-24 years will be 1.08 billion yuan, 1.44 billion yuan and 1.82 billion yuan respectively, and the corresponding PE will be 50, 38 and 30 times respectively. Maintain the “buy” rating.
Risk tip: the promotion of new products is not as expected; Intensified market competition; The epidemic has been repeated and the macro-economy is under pressure.
