\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Performance review
On March 10, the company released its annual report for 2021, which realized a revenue of 4.948 billion yuan (+ 88%), a net profit attributable to the parent company of 782 million yuan (+ 21%), and a net profit not attributable to the parent company of 663 million yuan (+ 17%).
In a single quarter, in 2021q4, the company achieved a revenue of 1.936 billion yuan (+ 87%), a net profit attributable to the parent company of 227 million yuan (+ 9%), and a net profit not attributable to the parent company of 217 million yuan (+ 11%).
Business analysis
Functional skin care products continue to make efforts, and the overall performance gradually warms up. Based on the main business segment, the company has continuously launched products with market demand. The operating revenue increased by 88% year-on-year. Excluding the impact of share based payment, the net profit attributable to the parent company was 868 million yuan (+ 34.33%). Among them, the revenue of functional skin care products was 3.320 billion yuan (+ 146.57%), higher than the growth rate in the same period last year; The raw material business revenue was 905 million yuan (+ 28.62%), and the gross profit margin of pharmaceutical grade hyaluronic acid raw materials was 87%; Medical terminal business revenue (+ 5.47 billion yuan). In addition, the company will lay out its functional food business from 2021, and a variety of products are expected to bring profit increment in 22 years.
The brand building strategy has achieved initial results and the profitability has been continuously improved. The four major brands in the functional food field of the company are formed into a matrix: the revenue of runbaiyan is 1.229 billion yuan (+ 117.4%), and the revenue of kwadi is 979 million yuan (+ 150.2%); The revenue of BM muscle activity was 435 million yuan (+ 286.2%); Mibel’s revenue was 420 million yuan (+ 111.1%). With the gradual stabilization of the user base and the further opening of the growth ceiling in the future, the company is expected to continue to build 3-5 national brands and contribute to large-scale expansion.
Attach importance to product research and development and adhere to building the company’s long-term competitive advantage. In 2021, the company has 571 R & D personnel, 239 projects under research, and a R & D investment of 280 million yuan (+ 101.43%), which strongly supports the R & D and innovative development of the company’s projects. The company adheres to long-term principle, strengthens basic research and applied basic research, continues scientific and technological innovation with R & D strength, builds high barriers to competition and widens the moat.
Profit adjustment and investment suggestions
We are optimistic about the continuous volume of each section of the company. It is expected that the company will realize the net profit attributable to the parent company of RMB 996 million, RMB 1.25 billion and RMB 1.526 billion from 2022 to 2024, with a year-on-year increase of 27%, 26% and 22% respectively. Maintain the “buy” rating.
Risk tips
Risk of substitution of new materials and technologies; New product R & D risk; New product registration risk; Risk of core personnel turnover; Risk of decline in net interest rate; Industry competition intensifies risks
