\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Event:
The company issued its annual report for 2021.
Comments:
High revenue growth and good cash flow
In 2021, the company realized an operating revenue of 4.948 billion yuan, a year-on-year increase of 87.93%; The net profit attributable to shareholders of listed companies was 782 million yuan, an increase of 21.13% year-on-year; The net cash flow from operating activities was 1.276 billion yuan, a significant increase of 80.97% over 2020, and the cash flow continued to improve. In 2021, the gross profit margin of the company was 78.07%, down 3.34 PCT compared with 2020, The sales expense rate increased by 7.48pct, It is mainly due to the increase in the proportion of functional skin care products business and the company’s increase in the investment of corresponding brand and effect advertising expenses. The company’s net profit margin fell by 8.82pct To 15.67%.
The raw material business is quite bright, and the functional cosmetics business has achieved three digit high growth
In terms of business, the company’s raw material business achieved an operating revenue of 905 million, with a year-on-year increase of 28.62%, of which the revenue of other raw material businesses other than HA was 154 million, with a year-on-year increase of 120.33%. The revenue of multiple products exceeded 10 million, and the company pattern of bioactive platform was further improved. The revenue of medical terminal business was 700 million yuan, with a year-on-year increase of 21.54%. Among them, the revenue of skin medical products was 504 million yuan, with an increase of 15.88%. 2021 is the first year of the strategic upgrade of the company’s medical beauty business. The total sale of differentiated single product “imperial age twin needle” exceeds 250 thousand, and the company’s medical beauty business will further deepen reform in 2022. Orthopaedic injection products achieved a revenue of 123 million yuan + 37.08%, and won the bid for centralized procurement in nine provinces and two districts; The revenue of functional skin care products business was 3.320 billion yuan, with a year-on-year increase of 146.57%.
Relying on the differentiated technical route and brand positioning, the four major cosmetic brands go hand in hand and fully enter the stage of large-scale. Among them, the revenue of “hyaluronic acid core brand” runbaiyan exceeded 1 billion, reaching 1.229 billion, a year-on-year increase of + 117.42%. “Freezing age and anti-aging” brand kuadi + 150.19% to 979 million. “Specially developed for sensitive skin” mibel + 111.12% to 420 million, and “master of active ingredient control” BM muscle activity + 286.21% to 435 million.
Investment advice and profit forecast
With hyaluronic acid as the core, supplemented by a variety of bioactive substances, the company has gradually become China’s leading platform company for the whole industrial chain of bioactive substances, and jointly drives the business development with four sectors: bioactive raw materials, pharmaceutical terminals, functional skin care products and functional food. We expect the company to achieve eps2.0 from 2022 to 202416 / 2.82/3.60, pe53 / 41 / 32x, maintaining the “buy” rating
Risk tips
Brand incubation is less than expected, industry competition intensifies, and policy supervision risks
