\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
The company released its performance in 2021, and the functional skin care sector led the high growth of revenue. 1) Revenue: 4.95 billion / + 87.9% YoY in 21 years, mainly due to the high growth of functional skin care business revenue (+ 146.6% YoY); 2) Net profit: the net profit attributable to the parent company is 780 million / + 21.1% YoY, and the net profit attributable to the parent company is 660 million / + 16.7% YoY after deduction; 3) Operating cash flow: net cash flow from operating activities is 1.28 billion / + 81.0% yoy. Among them, Q4 achieved a revenue of 1.94 billion / + 86.8% YoY, a net profit attributable to the parent of 230 million / + 9.0% YoY, and a net profit attributable to the parent of 220 million / + 11.4% YoY after deducting non profits. The 21-year performance has met the vesting conditions of the first vesting period of the first vesting part of the restricted stock incentive plan.
The increase of phased expenses leads to a slight decline in profitability. 1) Gross profit margin: the gross profit margin of 21 years is 78.1% / – 3.3pcts, which is mainly due to the adjustment of freight to operating cost accounting in accordance with accounting standards since 21 years. Excluding the impact of freight and equity incentive expenses, the comprehensive gross profit margin is basically the same as that of the previous year; In a single quarter, the gross profit margin of Q4 is 78.5% / – 3.7pcts. 2) Expense rate: the sales expense rate of 21 years was 49.2% / + 7.5pcts, and the sales expense was 2.44 billion / + 121.6pcts. The increase was mainly due to ① the increase of 81.1% to 1329 salespeople compared with 20 years, resulting in the increase of employee salary and performance reward; 2. Online Tmall and jitter multi platform investment increased, online promotion service fees increased by 166.2% compared to the same period, and tiktok advertising and market development fees increased. The management fee rate was 6.1%, basically the same as last year, with a slight decrease. During the reporting period, the number of R & D personnel increased by 34.94% year-on-year, and the number of R & D personnel increased by 34.5% year-on-year, increasing to 571.5%. 3) Net interest rate: the net interest rate attributable to the parent company in 21 years is 15.8% / – 8.7pcts, and the net interest rate attributable to the parent company in Q4 is 11.7% / – 8.4pcts in a single quarter.
Adhere to the long-term principle, be optimistic about the gradual realization of strategic investment and contribute to the performance of all sectors
1) raw material business: the income of other bioactive substances has doubled, and efforts have been made to synthesize biology. In the 21st year, the revenue was 900 million / + 28.6% YoY, and the gross profit margin was 72.2%, of which the revenue of other bioactive substances was 150 million / + 120.3% YoY, and the platform enterprise of bioactive substances was further formed. In the future, the Tianjin plant is expected to complete the adjustment and upgrading work and officially put into operation before April 2022. The production capacity will be increased by 300 tons on the basis of the existing 470 tons, and it is planned to start the construction of sterile HA production line in Dongying foster plant in 2022; At the same time, the R & D team of fali synthetic biology has been preliminarily completed, the key laboratory has been recognized by the Provincial Department of science and technology, and the industrial base has been settled in Beijing and will be put into use, so as to enhance the company’s raw material business advantage and market competitiveness.
2) functional skin care business: a year-on-year increase of 147%, and the four brands have entered a new stage of large-scale development. In the 21st year, the revenue was 3.32 billion / + 146.6% YoY, and the gross profit margin was 79.0%. The revenue of the four major brands doubled. Among them, runbaiyan achieved an annual Gmv of more than 1 billion for a single brand for the first time, and BM muscle activity achieved a rapid growth of 286.2%. The four major brands have passed the initial growth period and entered the stage of scale. Specifically, ① brand side: adhere to the industrial development logic of science technology product brand, clearly plan the R & D technology route in the next 2-3 years, and deepen the differentiated positioning of the four brands; ② Product side: on the one hand, pay attention to the creation of star large single products. In the past 21 years, the four major brands have created their own core popular products (star large single products) and derivative series, and gradually shape the brand differences from the main categories; On the other hand, the product structure is more balanced, and the proportion of mask and creams emulsion products increased significantly to 24%/13%, and gradually balanced the pattern of secondary throwing height (41%/-6pcts). Channel master tiktok: diversified operation and global marketing effect are obvious. Online Tmall channel has been broadcasting itself, the proportion of broadcasts has dropped to 19% (-8%yoy), and the channel of shaking has increased by 14% to 17%. Offline runbaiyan opened 3 physical stores, and kwadi developed more than 200 offline franchise stores; ④ Organizational structure: in order to enhance the ability of business control, gradually take the channels with great potential from the agent operation mode to the operation. At the same time, a new multi department is established to build and improve the business middle office system, and give comprehensive and multi-dimensional support to the front office business to help the large-scale expansion of the business.
3) medical terminal business: in the first year of strategic upgrading, it takes three years to build a “Runzhi” medical beauty head brand. In the 21st year, the revenue was 700 million / + 21.5% YoY, and the gross profit margin was 82.1%, of which the revenue of skin medical products was 500 million / + 15.9% yoy. 2021 is the first year of the company’s medical beauty business strategy upgrading. ① brand side: sort out the brand positioning. Runzhi will take the rejuvenation of the face as the overall positioning, and build the medical beauty head brand in three years; Product end: in May, the imperial age Gemini needle went public. By the end of the year, it has linked 1000+ pioneer medical beauty agency and 300+ medical beauty agency to reach a deep strategic cooperation, accumulative sales of 25+ million. At the end of the year, the biphasic cross-linked super large particle product “Runzhi No. 5” suitable for deep injection was launched; As of December, it has been approved for water light equipment (class II), and as of January 22, it has been approved for 4 medical dressing products (class II). In the short term in the future, two single-phase hyaluronic acid injection products under research will be approved in 22 years. The second generation products based on micro crosslinking technology will soon enter clinical trials, and the new products of the same series of Shuiguang equipment will soon come out; In the medium and long term, Runzhi will continue to build a full part and full-level anti-aging product matrix. At the same time, the product pipeline and matrix will be further improved through the research of collagen and recycled materials, the product layout of medical beauty auxiliary and medical beauty equipment; ③ Channel side: break through the original B2B marketing mode, open up the new B2B and B2B2C marketing modes, and launch the “medical beauty symbiosis alliance empowerment plan” in May to build a new medical beauty ecology while opening up product sales channels; ④ Organizational structure: build a “strong middle platform” structure of the seven middle platforms, break the original organizational boundaries, and improve the organizational operation efficiency.
4) food business: in the first year of business development, the three brands are still in the construction and promotion period. Shuijiquan’s key products and channels, combined with medical beauty business, promoted the beauty package combination in medical beauty institutions in key cities, achieved the coverage of 384 institutions in 16 cities, and successfully settled in KKV and HEMA fresh; Black zero launched 15 SKUs and created 2 Gmv pieces breaking millions; A number of new products of 2.0 series aimed at the health problems of people staying up late in the corner are expected to be launched in succession in 22 years.
Investment suggestion: in the future, the advantages of R & D enabled raw materials will be further expanded, the functional skin care business will continue to increase, the effect of strategic adjustment of medical and American organizational structure will be gradually realized, and the food business will continue to develop. It is estimated that the operating revenue from 2022 to 2024 will be 6.93 billion / 8.99 billion / 11.21 billion, with a year-on-year increase of 40.0% / 29.8% / 24.7%, It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 990 million / 1.34 billion / 1.86 billion, with a year-on-year increase of 25.8% / 36.4% / 38.5%, maintaining the “buy” rating.
Risk tips: the risk of intensified industry competition, the risk of new product R & D and registration falling short of expectations, the risk of loss of core technicians, and the risk of food business development falling short of expectations.
