\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Core view
Event: on April 23, the company’s official website announced that the filing of cosmetics raw materials of the State Food and drug administration showed that the company’s “hydrolyzed zinc hyaluronate” (Guozhuang Yuanbei Zi 20220008) new raw materials that can be used for all kinds of skin cosmetics were successfully filed, which is the first new raw materials that the company has completed the filing since the promulgation of the regulations on the supervision and administration of cosmetics and the regulations on the administration of registration and filing materials of new cosmetics raw materials in 2021.
The company’s hydrolyzed zinc hyaluronate has become the first approved “HA + zinc” hyaluronic acid new raw material in the industry.
The success of this filing means that the raw material of “hydrolyzed zinc hyaluronate” and the production and operation of cosmetics in China are compliant, which provides a new product development idea for middle and lower reaches cosmetics enterprises. “Hydrolyzed zinc hyaluronate” is the perfect combination of HA and zinc. Zinc (Zn) is an essential trace element for human body and plays an important role in skin diseases, immune function, wound healing, growth and development, hair growth, etc. hyaluronic acid (HA) can effectively increase the bioavailability of zinc.
Patented technology terminals are widely used, breaking the ceiling of raw material business. The company slobber the technology of developing zinc hyaluronate, which contains high zinc content, low sodium ion residue, high purity, and has the functions of moisturizing and protecting skin. It can be used for personal care products such as facial mask, essence, cream, toothpaste, mouthwash, shampoo, etc. In addition to hyaluronic acid and its derivatives, the company has also developed dozens of bioactive substances such as ekdoyne, ergotathione and gamma aminobutyric acid, as well as several products under research at different development stages. The company has made continuous breakthroughs in the in-depth layout of synthetic biotechnology, continuously improved the ceiling of raw material business and enabled the transformation and upgrading of industrial chain.
Profit forecast and investment suggestion: Hydrolyzed zinc hyaluronate raw materials can provide moisturizing and protective effects for skin, and have broad application prospects in cosmetics terminals. The approval of new raw materials also demonstrates the company’s R & D and innovation strength as a leader in biotechnology. The company’s key layout of synthetic biotechnology continued to make breakthroughs, breaking the ceiling of raw material business, upgrading the enabling industrial chain, and opening up business growth space. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.08/14.4/1.82 billion respectively, the corresponding EPS will be RMB 2.24/2.99/3.80, and the corresponding PE will be 54 / 41 / 32x respectively, maintaining the “buy” rating.
Risk warning: the sales of new products are less than expected; The risk of intensified industry competition; Macroeconomic downside risks.
