\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Matters:
Recently, Bloomage Biotechnology Corporation Limited(688363) announced that it plans to participate in the establishment of a private fund jointly with the related party Shanghai doctor group and other partners, mainly investing in the fields of Dermatology and life sciences. In addition, the official account of the company was issued, and the company signed an agreement with China Coal Geological Group Co., Ltd. to acquire 51% stake in Beijing Yi & Kang Bioengineering Co., Ltd. for RMB 233 million yuan.
Guosen retail view: 1) Bloomage Biotechnology Corporation Limited(688363) and other partners such as Dr. Shang Hai Group jointly set up a private fund, raising a scale of 123 million yuan. The main direction is to jointly explore the brand ecological layout in the field of Dermatology, and accurately focus on the research and development of effective skin care and brand incubation, so as to lay a foundation for the long-term development of the company’s skin care business; 2) At the same time, Yierkang biological acquired by the company is deeply engaged in the field of collagen medical terminals, including admission products such as collagen sponge and artificial bone, such as “Beiling” collagen sponge and “Ruifu” artificial bone. This acquisition means that Bloomage Biotechnology Corporation Limited(688363) officially enters the collagen industry, which is expected to further enrich the layout of its medical end products; 3) In general, as a world-famous biotechnology company and bioactive material company, the company is expected to continuously improve and expand its business matrix and further realize its core business market competitiveness by accelerating endogenous extension in the near future: the raw material business actively develops steady growth in the Chinese market, and is expected to further benefit from food grade hyaluronic acid and other bioactive materials to open up demand space; The medical terminal business is upgraded and focused on the Runzhi brand, and the targeted layout of facial rejuvenation solutions. At the same time, the company is expected to actively enrich the product pipeline through endogenous extension and promote the long-term iterative development of the business; While the functional skin care business benefits from the industry dividend, the company is also actively exploring new channels and new categories, and there is still room for growth in the future; The functional food business will improve the product matrix and is expected to gradually become the fourth growth driver of the company. We maintain the company’s forecast of net profit attributable to the parent company from 2022 to 24 as 1.064 billion yuan / 1.426 billion yuan / 1.877 billion yuan, and the corresponding PE of the current stock price is 52 / 39 / 29x respectively, maintaining the rating of “overweight”.
Comments:
Set up private equity funds to strengthen the layout of skin care courses
On the evening of April 15, 2022, Bloomage Biotechnology Corporation Limited(688363) announced that it planned to participate in the establishment of a private equity fund “Hainan Haixi equity investment partnership (limited partnership)” with Shanghai doctor group and other partners. The main purpose is to jointly explore the brand ecological layout in the field of Dermatology, accurately focus on the research and development of effective skin care and brand incubation, and quickly realize the effective empowerment of industrial and professional resources. The private equity fund aims to raise 123 million yuan, and the company has subscribed 40 million yuan, accounting for 32.44%.
Among them, Dr. Shang Hai Group has rich experience and resources in the field of effective skin care. Its main shareholders are experts in the field of skin science. Its sponsors include Professor Zheng Zhizhong, former director of Dermatology of Huashan Hospital Affiliated to Fudan University, Professor Wen Hai, chairman of the professional committee of Dermatology and venereal diseases of Shanghai Society of integrated traditional Chinese and Western medicine, etc. it has strong foresight in the technical development trend in the field of skin science and the control of the R & D direction of effective skin care products.
In recent years, the company’s functional skin care business has developed rapidly, forming the layout of four major brands: runbaiyan, kwadi, mibel and BM muscle. In 2021, the revenue of skin care products business increased by 146.57% year-on-year to RMB 3.320 billion, accounting for 67%. The establishment of this private equity fund is expected to further strengthen the company’s ecological layout in the field of functional skin care. Make full use of the prospective experience of experts in the field of Dermatology of the partner in product R & D and the advantages of clinical diagnosis and treatment resources to explore the development direction of emerging products in the industry from the perspective of medical research and co creation, so as to further strengthen the company’s brand incubation ability.
Lay out the collagen industry and further enrich the matrix of medical end products
The official account of the company was released in April 19th. In April 15th, Bloomage Biotechnology Corporation Limited(688363) signed a property rights trading contract with the China Coal Geological Group Co., Ltd., which acquired 51% stake in Beijing Yi and Kang Bioengineering Co., Ltd. (hereinafter referred to as “Yi and Kang bio”) for RMB 233 million yuan, and formally entered the collagen industry. Founded in 1997, Yierkang biology was a wholly-owned subsidiary of the central enterprise zhongmeidi group, mainly engaged in the development, production and operation of biomedical materials and medical devices.
In terms of product pipeline, according to the data on the official website of Yierkang biology, the company mainly focuses on medical devices and beauty makeup: 1) medical device products include “Beiling” collagen sponge and “Ruifu” artificial bone. Both products have won the title of “national key new products”, which are class III medical devices. Beiling products have the functions of tissue repair, residual cavity filling, hemostasis, drug carrier and anti adhesion, It is widely used in various surgical operations, accounting for about 30% of the city in China; Ruifu products can induce the growth of autologous bone and promote bone healing. At the same time, they can degrade by themselves, reduce the pain of patients and speed up the rehabilitation process. 2) the beauty makeup area is mainly made of Collagen Facial Mask, which is used to moisturize and relieve skin allergy.
In terms of performance, Yierkang biology achieved revenue of 872525 million yuan, 792855 million yuan and 756798 million yuan in 2019, 2020 and January November 2021 respectively; The net profit was 248065 million yuan, 109706 million yuan and 130914 million yuan respectively. As of November 30, 2021, the total assets were 113 million yuan.
Investment advice
As a world-renowned biotechnology company and bioactive material company, the company is expected to continuously improve and expand its business matrix by accelerating endogenous extension in the near future, and further realize the market competitiveness of its core business: the raw material business actively develops the steady growth in the Chinese market, and is expected to further benefit from food grade hyaluronic acid and other bioactive materials to open up the demand space; The medical terminal business is upgraded and focused on the Runzhi brand, and the targeted layout of facial rejuvenation solutions. At the same time, the company is expected to actively enrich the product pipeline through endogenous extension and promote the long-term iterative development of the business; While the functional skin care business benefits from the industry dividend, the company is also actively exploring new channels and new categories, and there is still room for growth in the future; The functional food business will improve the product matrix and is expected to gradually become the fourth growth driver of the company. We maintain the company’s forecast of net profit attributable to parent company in 202224 to be 1.064 billion yuan / 1.426 billion yuan / 1.877 billion yuan, and the corresponding PE of current stock price is 52 / 39 / 29x respectively, maintaining the rating of “overweight”
Risk tips
The epidemic has repeatedly affected consumer demand; The growth rate of e-commerce is lower than expected; The growth rate of functional skin care business was lower than expected; The promotion of new products is less than expected
