\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Key investment points
The overall performance has declined, and the performance of biomedicine is bright. In 2021, the company achieved a revenue of 12.36 billion yuan (- 9.0%) and a net profit attributable to the parent company of 360 million yuan (- 43.3%). The overall performance declined, mainly because the company’s real estate business was greatly affected by the market decline. The company deepened the change of business structure and gradually transformed the health industry. Its Pharmaceutical Group Shandong Furuida achieved a revenue of 2.18 billion yuan (+ 66.7%) in 2021, accounting for 17.6% (+ 8.03pp) of the company’s operating revenue and a net profit attributable to the parent company of 180 million yuan (+ 69.3%), with an increase in the proportion of revenue and profit.
Biomedicine has three major businesses, and cosmetics business has shown rapid growth. 1) Cosmetics: in 2021, the company achieved a revenue of 1.49 billion yuan (+ 117%) through omni-channel collaborative marketing, of which Yilian brand achieved a revenue of 650 million yuan (+ 73.1%), accounting for 43.2%; Dr. yu’er achieved a revenue of 740 million yuan (+ 272.1%), accounting for 49.7%, with a strong growth trend. At present, based on the judgment of the prospect of cosmetics products, the company completed and put into operation Zhimei science and technology innovation park in 2021, including 35 production lines, with an annual output value of more than 4 billion yuan. 2) Medicine: in 2021, the company’s revenue was 540 million yuan (+ 8.7%), and has successfully introduced three drugs and one medical device equity, laying a good foundation for future development. 3) Raw materials and additives: in 2021, the company’s revenue was 240 million yuan (+ 22.0%), the sales of main products natamycin and milk chain increased by about 40% year-on-year, and the business developed orderly and stably.
The real estate business has declined under the influence of the market, and the property service has actively expanded the asset light business. In 2021, the company achieved contract sales of 14.65 billion yuan (- 16.8%), sales area of 1.37 million m3 (- 18.2%), and new construction of 1.38 million m3 (- 26.8%) in the whole year, which was lower than that in previous periods. In 2021, the real estate revenue was 9.28 billion yuan (- 19.5%), and the gross profit margin was 17.2%, which was greatly affected by the market downturn. The property management revenue is 420 million yuan (+ 15.4%), with a management area of 22.87 million square meters. The company has expanded asset light business through agent construction, investment promotion and health care business, and has expanded many business management businesses such as Laiwu Lushang Plaza project and Jinmao International Plaza project. In 2021, the total construction area of the company was 2 million m3, 1.4 million m3 has been completed, and 700000 m3 is currently under construction. In addition, the company’s affiliated health care enterprises have won the first batch of demonstration units of medical care combination in Shandong Province, which is very popular in the market.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of the company’s net profit attributable to the parent company from 2022 to 2024 will be 40.7%. Considering that the company is a leading manufacturer of hyaluronic acid, the biomedical business develops rapidly and maintains the “hold” rating.
Risk tip: risk of policy regulation in the real estate industry; Risk of demand fluctuation in the pharmaceutical and cosmetics market. eighteen thousand three hundred and ninety-four
