\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Key investment points
Acquire 51% equity of Yierkang Biological Engineering Co., Ltd. and officially enter the collagen industry: on April 15, 2022, the company signed a cooperation agreement with China Coal Geology group to acquire 51% equity of Beijing Yierkang Biological Engineering Co., Ltd. for RMB 233 million, and officially enter the collagen industry. Yierkang biology is a representative enterprise of collagen medical end products. In 2019, 2020 and January November 2021, it achieved revenue of 87 / 79 / 76 million yuan and net profit of 25 / 11 / 13 million yuan respectively. As of November 30, 2021, its total assets are RMB 113 million. In 2022 Bloomage Biotechnology Corporation Limited(688363) will blossom in the field of collagen. On the one hand, technological breakthroughs have been made in the development of recombinant collagen; On the other hand, the acquisition of Yierkang biology can strengthen its ability in the field of natural collagen.
Collagen is widely distributed in all parts of the human body and can be divided into natural collagen and recombinant collagen: collagen is widely distributed in all parts of the human body and can be divided into natural collagen and recombinant collagen. Collagen is widely distributed in skin, bone, tendon, fascia and other parts. It is a structural protein of extracellular matrix and plays a key role in maintaining the function and shape of skin. Collagen can be divided into natural collagen and recombinant collagen according to the source and method of extraction. The representative enterprises of natural collagen include Yierkang biology, Bedi biology, chuang’er biology and Qisheng biology, and the representative enterprises of recombinant collagen include Jinbo biology and Juzi biology.
Medical natural collagen is a representative enterprise, and its main products are collagen sponge and artificial bone. Yierkang biology is a representative enterprise of natural collagen in the medical field. Its core products are collagen sponge and artificial bone. Its main brands include “Beiling” and “Ruifu”. (1) “Beiling” collagen sponge: surgical consumables, the first in China to pass the verification of virus inactivation process. (2) “Ruifu” artificial bone: nano pharmaceutical product, also a bionic bone material, a patented technology project of Tsinghua University.
Many aspects of energy are beneficial and healthy, and the synergistic effect is expected to play gradually. Collagen may gradually become another core material of the company. The company’s existing business and Yierkang are expected to form a variety of synergies, and improve its comprehensive ability through various empowerment, including collaborative development of channels and departments, improvement of R & D and sales capacity, capacity improvement, etc. In general, collagen and hyaluronic acid are important substances widely distributed in the human body. Collagen is expected to gradually become Bloomage Biotechnology Corporation Limited(688363) another core substance, which will strongly support the sustainable development of the company’s business in the future.
Profit forecast and investment rating: the company is a leader in the global hyaluronic acid industry. The raw material business has developed steadily and continues to extend to the fields of terminal medical devices, cosmetics and food. The integration advantage under “four-wheel drive” is stable. We maintain that the net profit attributable to the parent company in 202224 is RMB 981 / 12.32 / 1.520 billion, and the current market value corresponding to the PE in 202224 is 57.56x/45.85x/37.18x respectively, maintaining the “buy” rating.
Risk tips: market competition intensifies, R & D progress is less than expected, sales promotion is less than expected, macroeconomic risks, etc.
