\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
The performance grew steadily in 2021, which was consistent with the previous performance express Bloomage Biotechnology Corporation Limited(688363) 2021 saw an annual revenue of RMB 4.948 billion, a year-on-year increase of + 87.93%, and a net profit attributable to the parent company of RMB 782 million, a year-on-year increase of + 21.13%, including a year-on-year increase of + 34.33% after excluding the impact of share based payment confirmed by equity incentive and a year-on-year deduction of non net profit of + 16.74%. At the same time, the company announced the profit distribution plan and planned to distribute a cash dividend of 4.9 yuan for every 10 shares, with a dividend rate of 30.06%. In addition, the company announced the main operating data from January to February 2021, and the revenue is expected to increase by 55% year-on-year, mainly benefiting from the strong growth of functional skin care products.
All product lines grew in an all-round way, of which the sales of functional skin care products increased by 146.57% year-on-year. In terms of revenue split, the raw material business still achieved a steady growth of 28.62% year-on-year under the continuous overseas epidemic, mainly benefiting from the expansion of the Chinese market and the explosive growth of other bioactive raw material businesses; The medical terminal business achieved a steady growth of 21.54% year-on-year, of which the revenue of skin medical products was 504 million yuan, a year-on-year increase of 15.88%; The functional skin care products business achieved a high growth of 146.57% year-on-year to RMB 3.320 billion, accounting for 67% of the revenue. Among them, runbaiyan / kwadi / mibeier / BM muscle activity increased by 117% / 150% / 111% / 286% year-on-year respectively, and its seven single products achieved annual sales of more than 100 million.
The adjustment of accounting standards affects the gross profit margin and the overall cash flow situation is better. The company’s gross profit margin in 2021 was 78%, with a year-on-year increase of -3.34pct, which was relatively stable after excluding the impact of the increase of performance cost to operating cost and equity incentive fee. The annual sales expense ratio increased from + 7.48pct to 49.24% year-on-year, which is expected to be affected by the marketing development of terminal products and other factors; The management fee rate was 6.12%, basically the same as last year, and the performance was stable under the increase of equity incentive fees. The annual inventory turnover days decreased by 94 days to 197 days year-on-year, and the operation efficiency was improved; In the whole year, the net operating cash flow was 1.276 billion yuan, a year-on-year increase of + 80.97%, and the cash flow situation was better.
Risk warning: repeated outbreaks; The growth rate of e-commerce did not meet expectations; The promotion of new products did not meet expectations
Investment suggestion: as the leader of the whole industry chain of hyaluronic acid, the company is expected to continue to improve its four business matrices and further expand the industrialization scale of hyaluronic acid: 1) the raw material business is growing steadily under the active development of the Chinese market, and is expected to further benefit from the demand for food grade hyaluronic acid and other bioactive raw materials; 2) Upgrade the medical terminal and focus on the Runzhi brand, targeted layout of facial rejuvenation solutions, and new products are expected to gradually increase in volume; 3) Functional skin care actively develops new channels and categories, and there is still room for growth in the future. 4) The functional food business will improve the product matrix and gradually become the fourth growth driver of the company. We expect the net profit attributable to the parent company from 2022 to 2024 to be 1.064 billion / 1.426 billion / 1.877 billion yuan, and the corresponding PE of the current stock price is 51 / 38 / 29x respectively, maintaining the rating of “overweight”.
