\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Performance description: in 2022q1, the company achieved revenue of 1.255 billion yuan / yoy + 61.57%, net profit attributable to parent company of 200 million yuan / yoy + 31.07%, non net profit attributable to parent company of 183 million yuan / yoy + 31.21%, non economic profit and loss of 16.86 million yuan, mainly from government subsidy of 16.01 million yuan, net operating cash flow of – 217 million yuan, compared with 23.71 million yuan in the same period of last year, and basic earnings per share of 0.42 yuan / yoy + 31.25%. Performance growth improved month on month.
The cosmetics business increased by 95%, and the Tiktok channel continued to make efforts. Q1 company achieved a revenue of 1.255 billion yuan / yoy + 61.57%. In terms of business, ① cosmetics business increased by nearly 95% year-on-year. In terms of sub brands, runbaiyan yoy + 42%, kuadi yoy + 70-80%; Muscle activity exceeds 100%; ② The raw material business increased by 20-25% year-on-year; ③ The medical device business grew by less than 10% year-on-year. From the perspective of cosmetics business channels, according to the data of feigua and magic mirror, the growth rate of Tiktok channel is higher, the growth rate of tmall channel is slower, and the proportion of Tiktok self broadcast of run Baiyan brand is the highest.
R & D projects increased, the cost increased significantly, and the net interest rate improved month on month. The gross profit margin of 2022q1 company was 77.13%, a year-on-year decrease of 1.57pct; The net interest rate was 15.75%, a year-on-year decrease of 3.84pct and a month on month improvement of 4.3pct. In terms of expenses, the sales expense rate was 45.12%, with a year-on-year increase of 1.55 PCT, the management expense rate was 6.25%, with a year-on-year increase of 0.80 PCT, and the R & D expense rate was 6.49%, with a year-on-year increase of 1.48 PCT, mainly due to the increase of employee salary and equity incentive expenses, as well as the increase of direct R & D investment and outsourcing R & D expenses in the current period due to the increase of R & D projects.
The collection capacity has been improved. In terms of operating capacity, the net operating cash flow decreased by 241 million yuan to – 217 million yuan compared with the same period of the previous year, mainly due to the payment of accounts payable and employee compensation payable at the end of the previous year and the increase of expenses paid in the current period due to the increase of sales revenue. The turnover rate of accounts receivable increased by 1.19 times to 3.25 times year-on-year, the collection ability was enhanced, the turnover rate of accounts payable decreased by 0.44 times to 0.47 times year-on-year, and the turnover rate of inventory increased by 0.04 times to 0.38 times year-on-year.
Acquire Yierkang project and enter the collagen industry. According to the company’s official wechat, in April 2022, the company acquired 51% equity of Beijing Yierkang Bioengineering Co., Ltd. for 233 million yuan, and Yierkang bioengineering will become the holding subsidiary of Bloomage Biotechnology Corporation Limited(688363) . Collagen will become Bloomage Biotechnology Corporation Limited(688363) another core substance and enrich the company’s bioactive product pipeline. The hospital admission products such as collagen sponge and artificial bone mainly produced by Yierkang biology can further enrich the company’s existing medical terminal product pipeline, form a good medical terminal product matrix and multi department layout.
Investment suggestion: the company is the leader of the global hyaluronic acid industry, with outstanding advantages in the layout of the whole industrial chain. The four-wheel drive strategy opens the space for sustainable growth. Under the effective publicity investment, the proportion of re purchase of skin care products is expected to increase. We expect that the company’s revenue from 2022 to 2024 will be 7.158 billion, 9.162 billion and 11.499 billion, and the net profit attributable to the parent company will be 982 million yuan, 1.327 billion yuan and 1.734 billion yuan, with a year-on-year increase of 25.6%, 35.1% and 30.7% respectively, corresponding to 57x / 42x / 32x respectively in 22-24 years, maintaining the “recommended” rating.
Risk tip: industry competition intensifies the risk, the launch of new products is less than expected, and the risk of supply chain interruption.
