\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Q1 performance in 2022 was stable, and revenue growth accelerated in March. The company’s Q1 revenue in 2022 was 1.255 billion yuan, with a year-on-year increase of 61.57%, and the net profit attributable to the parent company was 200 million yuan, with a year-on-year increase of 31.07%. It is expected to mainly benefit from the high growth of the income side, in which the sales revenue of functional skin care products increased significantly. Referring to the operating data previously released by the company from January to February 2022, the revenue growth rate of the company in March 2022 reached about 69%, higher than the growth rate of 55% from January to February, and still performed strongly under the influence of the epidemic.
The sales expense rate has increased, and the R & D investment has further increased. In 2022, the company’s Q1 gross profit margin was 77.13%, with a year-on-year rate of -1.56 PCT, and the sales expense rate was 45.12%, with a year-on-year rate of + 1.55 PCT, which is expected to be affected by the marketing development of terminal products and other factors. The company’s R & D expense ratio increased from + 1.48pct to 6.49% year-on-year, which is due to the increase of employee salary and equity incentive expenses, as well as the impact of the increase of direct R & D investment and outsourcing R & D expenses in the current period due to the increase of R & D projects. In terms of cash flow, the company’s net operating cash outflow was 217 million yuan, mainly due to the payment of accounts payable and employee compensation payable at the end of last year, as well as the increase of expenses paid due to the increase of sales revenue.
Risk warning: repeated epidemic situation; The growth rate of e-commerce did not meet expectations; The promotion of new products did not meet expectations
Investment suggestion: as a world-famous 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, including participating in the establishment of private equity fund in April 2022, accurately focusing on functional skin care R & D and brand incubation, acquiring 51% equity of Yierkang biology and entering the collagen industry. We maintain that the company’s net profit attributable to the parent company from 2022 to 2024 is predicted to be 1.064 billion yuan / 1.426 billion yuan / 1.877 billion yuan, the corresponding EPS is 2.22 yuan / 2.97 yuan / 3.91 yuan / share respectively, and the corresponding PE of the current stock price is 52 / 39 / 30x respectively, maintaining the rating of “overweight”.
