\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Event:
Bloomage Biotechnology Corporation Limited(688363) released the annual report of 2021, which achieved a revenue of 4.948 billion yuan / year-on-year increase of 87.9%, a net profit attributable to parent company of 782 million yuan / year-on-year increase of 21.1%, and a net profit deducted from non attributable to parent company of 663 million yuan / year-on-year increase of 16.7%.
Key investment points:
The revenue side maintains rapid growth, and the profit side is under short-term pressure. In 2021, the company achieved a revenue of 4.948 billion yuan / year-on-year increase of 87.9%, and the net profit attributable to the parent company was 782 million yuan / year-on-year increase of 21.1%. Among them, 2021q4 achieved a revenue of 1.936 billion yuan / year-on-year increase of 86.8%, and the net profit attributable to the parent company was 227 million yuan / + 9%. In 2021, the company's gross profit margin reached 78% / a year-on-year decrease of 3.3pct. In terms of expense rate, the company's sales / management / R & D expense rate reached 49.2% / 11.9% / 5.7% respectively in 2021, mainly due to the increase of the company's promotion and the growth of sales personnel. Due to the increase of equity incentive expenses + sales expenses + depreciation and amortization of new factories, the growth rate of the company's profit side revenue is slower than that of the revenue side.
Ha raw materials have developed steadily, other raw materials have increased rapidly, and the bioactive platform has been gradually built. In 2021, the company achieved revenue of 905 million yuan / + 28.6% at the raw material end, and the gross profit margin decreased to 72.2%. By product category: 1) cosmetics achieved revenue of 390 million / + 16%, accounting for 43.2% / - 4.7 pct of the total revenue of raw materials, and continued to increase its market share in Europe, America, Asia and other overseas markets; 2) The medical grade achieved a revenue of 250 million yuan / + 15.8%, accounting for 27.9% / - 3.1pct, and the gross profit margin remained at about 87%, of which the injection grade achieved a year-on-year increase of about 30%; 3) The income of food grade reached 110 million / + 36.9 PCT, accounting for 11.9% / + 0.7 PCT; 4) The revenue of other raw materials reached 150 million / + 120%, accounting for 17% / + 7.1pct, and the revenue of multiple products exceeded 10 million.
The layout of medical and American pipelines has been continuously improved, and orthopedics and other businesses have grown rapidly. In 2021, the company's medical terminal business realized a revenue of 700 million yuan / + 21.5%, and the gross profit margin decreased slightly to 82%, including:
(1) the revenue of skin medical products is 504 million yuan / + 15.9%, accounting for 72%. In 2021, the company reorganized the medical and American pipeline products and continuously improved the layout: 1) focus on the product differentiation advantages of micro crosslinking to create a "big single product". At the end of 2021, the "Royal age twin needle" has been linked to more than 1000 pioneer medical institutions, with a total sales of over 250 thousand. 2) In terms of new products, at the end of 2021, the company launched the double intersection Lianda granular product "Runzhi No. 5" with a particle size of 800um. The clinical trial of two single-phase products under development is about to be completed and is expected to be approved in 2022. The company's soft tissue filler will cover more parts in the next 3-5 years; 3) In terms of water light products, the company's second-generation products based on micro crosslinking technology are about to enter the clinical trial stage, and the company has arranged a number of basic and functional water light products. Water light products are expected to fully enter the "mechanical three times" within three years, which is in line with the trend of strict supervision; 4) In terms of collagen and recycled materials, the company has completed key technological breakthroughs in self-developed collagen raw materials, and synchronized the development of collagen end products; 5) In terms of medical and aesthetic auxiliary products, by January 2022, the company has approved 4 medical dressings of class II medical devices, which are mainly used for micro plastic surgery, photoelectric projects and the care of superficial wounds after fruit acid skin replacement; 6) In terms of medical and aesthetic equipment products, as of December 2021, the company has been approved as the second category of medical devices, water light equipment, and the new products of the same series of water light equipment are about to come out.
(2) orthopaedic injection products achieved revenue of 123 million yuan / + 37.1%. Among them, the orthopedic product "hailida" has won the bid for centralized procurement in Anhui Province, and 26 provinces have obtained the online sales qualification. In addition, the company has also made every effort to carry out the application of PrP in many fields. In 2021, the admission sales of nearly 100 tertiary hospitals will be added.
(3) other businesses achieved a total revenue of 72 million yuan / + 42.7%.
Functional skin care products are growing rapidly, and the brand matrix + explosive product system is gradually improved. In 2021, the company's functional skin care products achieved revenue of 3.32 billion yuan / + 147%, of which the gross profit margin was 79%. If the freight is restored, it will achieve a slight increase, of which: (1) from the perspective of sub brands: 1) runbaiyan achieved revenue of 1.23 billion yuan / + 117%, of which the barrier repair / Moisturizing Series became explosive products; 2) Kwadi achieved a revenue of 980 million yuan / + 150%, and cream products performed well; 3) Mibel achieved revenue of 420 million yuan / + 111%; 4) BM muscle activity achieved an income of 430 million yuan / + 286.2%. (2) tiktok: 1) the vibrato is bright, and its ratio is 17%/+14pct. 2) Tmall channel is the main front of talent live broadcast, and the live broadcast of runbaiyan talent decreased 8pct to 19% year-on-year; 3) In terms of offline channels, runbaiyan opened 3 physical stores / kwadi developed more than 200 offline franchise stores; (3) In terms of product structure: 1) the number of disposable products increased by 107% at the same time, but the proportion decreased 6pct to 41%; 2) the proportion of mask / creams emulsion products increased significantly from 7pct to 24%/8pct to 13%.
Profit forecast and investment rating: the company achieved revenue of 640 million yuan / + 55% from January to February 2022, and the revenue growth remained strong. It is estimated that the company will achieve revenue of 6.88/91.5/11.57 billion yuan in 2022 / 2023 / 2024, with a year-on-year increase of 39.1% / 32.90% / 26.50%. The net profit attributable to the parent company is expected to be 997 / 1286 / 1657 million yuan, with a year-on-year increase of 27% / 29% / 29%, maintaining the rating of "overweight".
Risk tips: 1) substantial increase in flow cost; 2) Overseas brands cut prices to seize market share; 3) Product quality problems; 4) Stricter supervision leads to the new products being less than expected; 5) The rapid rise of cutting-edge brands intensifies competition; 6) If relevant materials and data are inconsistent with Bloomage Biotechnology Corporation Limited(688363) announcement, the announcement of the company shall prevail.
