\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Main points:
Transforming big health industry, ecological health & two wheel drive of biomedicine
Lushang Health Industry Development Co.Ltd(600223) in its early stage, it took real estate as its main business and gradually formed a comprehensive health service group integrating real estate, cosmetics, drugs and hyaluronic acid raw materials through mergers and acquisitions. The company acquired Shandong Furuida pharmaceutical and Shandong focus biology in 2018 and 2019, and laid out the cosmetics and hyaluronic acid industrial chain. After the company introduces Tencent and other well-known war investment and increases capital and shares, the company’s cosmetics business is expected to develop in depth by optimizing capital structure and broadening financing channels, enhancing resource synergy. The company has formed a two wheel drive of ecological health and biomedicine, and all business segments have achieved high-quality development.
Cosmetics business blossoms at multiple points, with high income and profit optimization
Relying on the “4 + n” brand operation strategy, the company’s cosmetics business focuses on micro ecological skin care, hyaluronic acid skin care, precision skin care, nourishing skin with oil, fragrance, make-up and other segments. In 2021, the cosmetics business achieved a revenue of 1.495 billion yuan, a year-on-year increase of + 117.01%. Among them, Dr. yu’er is a micro ecological science skin care brand with the whole link of “industry, University, medicine and research”. A variety of star products under him have driven the growth of performance. In 2021, the revenue reached 744 million yuan, a year-on-year increase of + 272.14%; Yi Lian focuses on the concept of “hyaluronic acid + skin care”, and achieves 646 million yuan in revenue by relying on replenishment spray and other star products, up +73.08%. Sub brands: iparhan, quanrun, Shanyan and UMT are poised to grow and create a new growth curve in lavender essential oil maintenance, high-end beauty care, skin care and beauty makeup.
The hyaluronic acid industry chain is arranged, and the orthopedic and ophthalmic drug markets are dominant
Furida, the acquisition focus, accelerated its entry into the field of hyaluronic acid. Focus Freida has a hyaluronic acid production capacity of 420 tons / year, leading the world. The company continued to distribute hyaluronic acid end products. In 2021, the revenue of raw material additives reached 241 million yuan, a year-on-year increase of + 21.96%. In terms of medicine, the product structure of Bausch lunfrida and Mingren Frida is complete, the market share of Bausch lunfrida in the field of orthopedics is leading in the industry, and the market share in the field of ophthalmology is more than 20%; Mingren furida products cover orthopedics, pediatrics, gynecology and other fields, with strong marketing and R & D capabilities. In 2021, the company’s drug business revenue was 541 million yuan, a year-on-year increase of + 8.71%.
Investment suggestions:
It is estimated that from 2022 to 2024, the company’s revenue will increase by 11.83%, 13.81% and 11.67% year-on-year, and the net profit attributable to the parent company will be 670, 914 and 953 million yuan, with a year-on-year increase of 85.1%, 36.4% and 4.3%, corresponding to EPS of 0.66, 0.91 and 0.94 yuan, and corresponding to PE of current stock price of 15, 11 and 10 times. The company has built a large health product chain, a large health service chain and a large health ecological chain industrial ecosystem, forming a two wheel drive of biomedicine and ecological health industry. The real estate business is basically the stock business of the company. The company arranges the cosmetics, drugs and hyaluronic acid industrial chain through acquisition. Dr. yu’er and Yilian, the twin stars of cosmetics, have a certain brand voice, driving the continuous growth of the company’s performance. The introduction of high-quality war investment by its Freida is expected to give the company a certain preference in industrial resources and brand marketing. For the first time, give a “buy” rating.
Risk tips:
Intensified competition in the cosmetics industry; Operational risks of real estate business; Risk of epidemic uncertainty; Industry regulatory policies have become stricter.
