\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
The company’s revenue in 2021 was 4.948 billion yuan (+ 87.9%), and the net profit attributable to the parent company was 782 million yuan (+ 21.1%). The company issued an annual report: the revenue in 2021 was 4.95 billion yuan (+ 87.9%), and the net profit attributable to the parent company was 780 million yuan (+ 21.1%), with high growth in revenue. Considering that as the global leader of hyaluronic acid, the company pays attention to R & D investment, has prominent advantages in the layout of the whole industrial chain, and has broad growth space for four-wheel drive in the future; We raised the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 1.028 (+ 0.30) / 13.44 (+ 0.64) / 1.728 billion yuan, the corresponding EPS will be 2.14 (+ 0.06) / 2.80 (+ 0.13) / 3.60 yuan, and the corresponding PE of the current stock price will be 52.5/40.2/31.3 times, maintaining the “buy” rating.
Four core brands drive the high growth of functional skin care products; The raw material business and medical terminal business grew steadily. In terms of sub business, the company’s functional skin care products achieved an operating revenue of 3.32 billion yuan (+ 146.57%, and the gross profit margin was 79%), with continuous high growth. Among them, the runbaiyan / kwadi / BM Jihuo / mibeier brand achieved a revenue of 1.23 billion yuan (+ 117%) / 980 million yuan (+ 150%) / 430 million yuan (+ 286%) / 420 million yuan (+ 111%); The raw material business achieved a revenue of 905 million yuan (+ 28.6%, gross profit margin of 72.2%), and the company actively developed other bioactive raw materials (achieved a revenue of 154 million yuan, + 120.33%); The medical terminal business achieved a revenue of 700 million yuan (+ 21.5%, gross profit rate 82.1%), of which the skin medical products achieved a revenue of 504 million yuan (+ 15.9%). In terms of profitability, the company’s gross profit margin was 78.1% and the period expense rate was 61.1% (up 7.8pct compared with 2020), which was mainly due to the company’s strategic increase in marketing investment in the brand promotion stage, and the sales expense rate increased to 49.2% (+ 7.5pct); In addition, the company pays attention to R & D investment, and the R & D expense rate is 5.7% (year-on-year + 101.4%, + 0.4pct).
The company has a broad four-wheel drive market, and the barriers to competition and moat continue to deepen
(1) raw material business: the company’s hyaluronic acid production capacity is the world’s leading, and food grade and other raw materials are expected to become a new growth point in the future. (2) medical terminal: in 2021, the company upgraded its medical beauty strategy. In May, it launched the imperial age twin needle and launched the “run to No. 5” at the end of the year. The two single products are expected to be approved in 2022. In the next 3-5 years, soft tissue fillers are expected to form a full part and full-level anti-aging product matrix to meet the needs of multiple scenarios, and the market share is expected to continue to increase. (3) Functional skin care products: the matrix of four major brands is formed, and the performance of large single products is outstanding (the annual sales of seven single products exceed 100 million), which can continue to increase in the future. (4) Functional food: 2021 is the first year of development, with broad space in the future.
Risk warning: the promotion of end products is not as expected; Risk of core personnel turnover; Industry competition intensifies.
