\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Key investment points
Introduction: extensive acquisition + company change + War investment support + fund operation to promote the transformation from real estate to the field of great health. Supported by the brands of Yilian and Dr. yu'er, improve the brand matrix, adhere to the strategy of large single products, diversify the layout of channels, be optimistic about the successful transformation of the company and gradually realize the business performance.
Real estate transformed into a large health industry and built a two wheel drive of biomedicine + ecological health. (1) Extensive acquisition and diversified layout: in 2018, it acquired 100% equity of Freida pharmaceutical and laid out new fields of biomedicine and skin care products. It owns many well-known brands such as Yilian and Dr. Yuer, with a high degree of completion of performance commitments; In 2019, it acquired 60.11% equity of focus biology, arranged the production of hyaluronic acid and became a leading raw material supplier; In 2020, he took shares in iparhan and entered the aromatic industry. (2) Changing the company's commander and enabling great health: in January 22, Jia Qingwen served as the chairman of the board. President Jia has medical management background and rich management experience (once a senior executive of Freida medicine) to promote the transformation of Shandong merchants to great health. (3) External war investment support, fund establishment and industry wide operation: Freida pharmaceutical introduced Tencent, Shenzhen Merchants Group, Hangzhou Onechance Tech Corp(300792) and other shareholders to enable e-commerce operation, and employee placement deepened equity binding; The company has set up the medicine and beauty business department internally, established two major funds for M & A and venture capital to provide extension support, focused on innovative medicine and other fields, and improved the layout of the industrial chain.
Cosmetics: multi brand operation, precise positioning and market segmentation. The multi-point layout in the three fields of skin care, fragrance and make-up, the "belt and many" multi product development strategy, and the creation of a collaborative brand cluster, achieved an income of 622 million in 21h1, and the proportion of revenue increased from 5.06% at the end of 20 to 15.29%. The operation effect of cosmetics business is gradually realized. (1) Dr. yu'er: differentiated positioning of micro ecological skin care, based on the strong scientific research strength of Freida, supporting the creation of many popular products such as jieyanmi, the products are streamlined and focused, the large single product strategy is implemented, the product re purchase rate is more than 30%, the channel end is fully covered Online + offline, and the offline differentiated layout of light medical beauty chain stores and terminal retail stores has become the largest brand of the company. (2) Yi Lian: "skin solution" skin care creators, specializing in the concept of "hyaluronic acid + skin care" for many years. The brand is based on furida's research and development, and builds water replenishing spray and explosive products, expands the fullerene compound products, and gradually improves the product matrix. (3) Sub brands: iparhan entered the fragrance field, focused on skin measurement customization, focused on weak sensitive skin repair, UMT specialized in skin care base makeup, differentiated layout and improved brand matrix.
Biomedicine + raw materials: diversified layout and leading subdivision. (1) Mingren furida: it involves cold, orthopedics, external plaster and other fields, and the product structure is perfect. (2) Bausch & lomfreida: from 2016 to 2018, the market share of ophthalmology was stable at 23%, the growth rate of orthopedic market was slow, and the market share of Bausch & Lomb was high. The two major fields may benefit from population aging in the future. (3) Focus biology: the company has a production capacity of 420 t / a hyaluronic acid. It cooperates with the Chinese Academy of Sciences to produce fullerene raw materials. The effect of compounding with hyaluronic acid is "1 + 1 2". Other raw materials have a rich product matrix.
Investment suggestion: the company transformed into a big health field, with a high prosperity hyaluronic acid track, and supported the cosmetics business with two brands of Yilian and Dr. yu'er. The net profit of the company is expected to be 745 million / 923 million / 1015 million in 21-23 years. The segment valuation method is expected to have a market value of 15 billion yuan in 22 years, corresponding to 34% of the space. It is given a "buy" rating for the first time.
Risk tips: there is a risk of declining prosperity in the cosmetics industry, increased competition in the cosmetics industry, the promotion of new products is less than expected, and the real estate policy is tightened.
