\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Report guide
The company released its annual report for 21 years, with a revenue of 4.95 billion in 21 years, a year-on-year increase of 87.9%, of which the revenue of functional skin care products increased by 147% year-on-year.
Key investment points
Performance overview: year on year revenue of 21 years + 88%, net profit attributable to parent company + 21%.
2021: 1) revenue / net profit attributable to parent company / deduction of net profit not attributable to parent company: 49.5/7.8/660 million yuan, year-on-year + 88% / 21.1% / 16.7%. Non recurring gains and losses mainly come from government subsidies (contribution of 130 million yuan). Excluding equity incentives, the net profit attributable to the parent company was 870 million yuan, a year-on-year increase of + 34%. 2) Gross profit margin 78.1% (- 3.3pp), net profit margin 15.7% (- 8.8pp); The rates of sales / management / R & D expenses were 49.2% / 6.1% / 5.7% respectively, with a year-on-year increase of + 7.5pp / flat / + 0.4pp. Among them, the substantial increase in sales expenses is mainly due to the increase in sales personnel and salary + the increase in online new media marketing + the increase in offline marketing (cooperation with Focus Media Information Technology Co.Ltd(002027) co-operation).
2021q4: revenue / net profit attributable to parent company / deduction of net profit not attributable to parent company: RMB 1.94/2.3/220 billion, year-on-year + 87% / 9% / 11.4%.
There will be more pre investment in 21 years, and it is expected to decline in 22-23 years. In the 21st year, the annual depreciation of Tianjin factory exceeded 40 million yuan, and the loss of innovative brands of personal care and functional food exceeded 60 million yuan. It is estimated that the depreciation of Tianjin factory in 22 years will still have a certain impact on profits, but the amortization expenses of equity incentives and losses of other innovative brands are expected to decline.
The revenue of functional skin care products increased significantly, driving the overall revenue to exceed expectations.
The higher than expected revenue of the company is mainly driven by functional skin care products. Specifically, in 2021:
1) functional skin care products business: transition from scale growth to refined operation. The revenue was 3.32 billion yuan (accounting for 67%), a year-on-year increase of + 147%. The high growth of cosmetics is mainly due to:
Product side: the strategy of large single product is successful. The annual sales of seven single products are more than 100 million. The explosive products include secondary throwing series, muscle active brown rice water, mibel powder water, etc.
Channel end: tiktok and other new channels, the proportion of super head has dropped. The proportion of tiktok channels was 17% (+14pp), and Tmall's master of Tmall accounted for 19% (-8pp).
Brand side: differentiated positioning of four major brands and finding representative advantageous categories. Runbaiyan's second throw, Cuddy's cream products, mibel and muscle active water dairy products have all gone through, expanding from single product → single category → multiple categories, single active substance → multiple active substances.
2) raw material business: build a bioactive platform and promote "1 to 10". The revenue was 900 million yuan (accounting for 18%), a year-on-year increase of + 29%.
The high growth of food grade and other bioactive substances drove the income of raw materials slightly higher than expected. Ha pharmaceutical grade / cosmetic grade / food grade / other raw material income was RMB 250 million / 3.9 million / 1.1 million / 150 million, with a year-on-year increase of + 16% / 16% / 37% / 120%; Among them, the advantages of HA injection grade were stable, with a year-on-year increase of about 30%.
Product structure adjustment + skin care grade food grade prices have declined, and the gross profit margin has declined. The gross profit margin of raw materials decreased to 72% (year-on-year -5.8pp), mainly due to the increase in the proportion of food grade raw materials with low gross profit, and the price of skin care grade and food grade raw materials decreased.
Bioactive platform enterprises have been further formed: a number of other bioactive raw materials have a revenue of more than 10 million, and potential varieties include ektobin, GABA, ergothioin, collagen, etc.
3) medical terminal: upgrade the medical and American pipeline and improve the layout of recycled materials. The medical terminal sector contributed 700 million yuan (accounting for 14%) in 21 years, with a year-on-year increase of + 22%. Among them, skin products (medical beauty) contributed 500 million yuan (accounting for 10%), a year-on-year increase of + 16%.
Medical beauty: deeply cultivate hyaluronic acid to create a full layout of Shuiguang, hyaluronic acid filling, recycled materials and repair products. Among them, Runzhi doll needle adopts micro cross-linking core technology, which is a scarce class III mechanical water light product in China; The second generation of micro crosslinked products will soon enter the clinic. The annual sales of Gemini needles exceeded 250000 pieces in 21 years, mainly in direct sales, covering 1000 medical and American institutions and in-depth cooperation with 300 medical and American institutions in 21 years. Sili products have entered Hainan first, and the license sector is advancing in an orderly manner. In the future, the company will arrange a series of recycled products, such as polyl-lactic acid and polycaprolactone freeze-drying agent (similar to Tongyan needle and maiden needle).
Ophthalmology and orthopedics: the contribution income is nearly 200 million yuan, of which orthopedics PrP products have achieved explosive growth, and nearly 100 admission sales of class III and class A hospitals have been added in 21 years.
4) food business: in the first year of functional food business development, the brand pattern was initially opened. In the 21st year, the company launched functional food brands such as black zero, shuijiquan (hyaluronic acid water), Wuxiang corner (hyaluronic acid fruit wine). Promote online and offline channels together. At present, the company has set up a number of food R & D centers; In the future, beauty, joint health and sleep health will be the main application directions.
Adhere to long-term ism and technological innovation, and the bottom scientific and technological power enables the whole industrial chain.
The company tamps the barriers to competition with its R & D strength. By the end of the 21st century, there were more than 570 R & D personnel, a year-on-year increase of + 194. 239 projects are under research, with a year-on-year increase of + 116, and the R & D cost is 280 million yuan. Focus on functional sugars, amino acids and synthetic biology. In the past 21 years, the company has set up a research and development team for synthetic biology, self-developed collagen raw materials and synchronously developed end products, and plans to establish an innovative technology platform for bioactive proteins and recycled materials.
Profit forecast and Valuation:
The company takes hyaluronic acid as the core to build a platform enterprise for bioactive substances, and the raw material business is growing steadily driven by hyaluronic acid + other bioactive substances; The 21-year strategic adjustment of medical beauty business needs to be released. Functional skin care products are strong. With effective publicity investment, brand awareness continues to improve, and all brands are expected to maintain rapid growth. It is expected that the income in 22-24 years will be 7.01 billion yuan, 9.02 billion yuan and 10.97 billion yuan respectively, with an increase of 42%, 29% and 22% at the same time; The net profit attributable to the parent company was 1.10 billion yuan, 1.53 billion yuan and 1.97 billion yuan respectively, with an increase of 41%, 39% and 29% at the same time. The current market value corresponds to pe49, 35 and 27x. We are firmly optimistic about the long-term development potential of the company and maintain the "buy" rating.
Risk warning: the progress of R & D and registration of new products is less than expected; Loss of core personnel or technology leakage; B-end or C-end competition intensifies; Outbreak or other black swan events affecting the consumption environment.
