\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
The quarterly results were beautiful, and the profit increased by more than 30%. The company released the first quarterly report of 2022, realizing a revenue of 1.255 billion yuan (YoY + 61.57%), a net profit attributable to the parent company of 200 million yuan (YoY + 31.07%), and deducting a net profit not attributable to the parent company of 183 million yuan (YoY + 31.21%). In the first quarter, the gross profit margin of the company decreased by 1.57 PCTs to 77.13%, of which the sales expense rate increased by 1.55 PCTs to 45.12%, the management expense rate increased by 0.81 PCT to 6.25%, the R & D expense rate increased by 1.48 PCTs to 6.49%, and the current R & D expense increased by 109.24% to 81.48 million yuan, mainly due to the increase of equity incentive fees and R & D projects, and the overall net profit attributable to the parent decreased by 3.70 PCTs to 15.92%.
The operation capacity is improved and the liquidation speed is accelerated. 1) Operating capacity: the net operating cash flow in 2022q1 decreased by 241 million yuan to – 217 million yuan, mainly due to the increase in accounts payable, employee compensation payable and sales revenue at the end of last year and the expenses paid in the current period. 2) Turnover capacity: the inventory value at the end of 2022q1 was 811 million yuan, an increase of 14.35% over the beginning of the year, and the inventory turnover rate increased by 1.19 times to 3.25 times; The accounts receivable at the end of the period was 370 million yuan, a decrease of 6.65% over the beginning of the year, and the turnover rate of accounts receivable increased by 1.19 times to 3.25 times year-on-year.
Raw material side: the production capacity is released orderly, and hyaluronic acid welcomes another breakthrough. The company has a strong market share of hyaluronic acid at home and abroad. The total hyaluronic acid production capacity of Jinan factory and Dongying factory has reached 470 tons. The production equipment of Tianjin factory has been commissioned successively, and it is expected to add 300 tons of hyaluronic acid and various bioactive substances. 1) In terms of pharmaceutical grade ha, Dongying plant will start the construction of sterile HA production line this year to continuously improve the scientific and technological power of raw materials and products. 2) Cosmetic grade ha welcomes another breakthrough. “Hydrolyzed zinc hyaluronate” has been filed by the State Food and drug administration as a new cosmetic raw material. It is the first approved “HA + zinc” hyaluronic acid new raw material in the industry. Synthetic biotechnology is expected to help the raw material business accelerate to the market and enable the industry with science and technology. 3) Food grade ha: actively empower industry customers to jointly promote the application in the food field, and its functional food brands “shuijiquan”, “black zero” and “unthinkable corner” accelerate the new track extension of hyaluronic acid.
Medical terminal: enter collagen and enrich the active substance pipeline. Focus on the market differentiation advantages of “micro crosslinking” products, and create “Runzhi” as the head brand of medical beauty. 1) Hyaluronic acid category: the double intersecting product “Runzhi No. 5” has been launched, and two single-phase products will be approved in 2022. In the future, soft tissue filler products will form a full part and full-level anti-aging product matrix with Runzhi series. 2) Micro crosslinked products: accelerate the promotion of ironing needle and baby needle to create a large single product strategy. The “defense against aging twin needle” explosive product project has linked 1000+ pioneer medical and aesthetic institutions. 3) Enter collagen: the company acquired 51% equity of Beijing Yierkang Bioengineering Co., Ltd., a leading enterprise in collagen. Its main products such as collagen sponge and artificial bone will further enrich the bioactive pipeline. 4) Further improvement of product matrix: carry out the synchronous development of polyl-lactic acid, polycaprolactone freeze-drying agent and water agent products. The product end water light equipment and four medical accessories have obtained class II certificate approval. In the future, medical devices, medical dressings and medical equipment will continue to be distributed.
Functional skin care products: the matrix strengthens the brand strength in an all-round way, and plans to set up a private fund to strengthen the empowerment of production and research. According to our tracking calculation, the overall online growth of cosmetics brands of 22q1 company was about 50% year-on-year, which was higher than the overall market. The playing methods of various brands were gradually advanced, and the profit model was continuously optimized around positioning: 1) run Baiyan launched the main anti-aging effect of hace in March, promoted online with spokesmen / experts, and received more than 150million exposures offline. The daily turnover of tmall’s big brand stores reached 14million +. In March, an offline store was opened in Jinan / Suzhou to experience product and skin testing and improve the brand’s sense of science and technology in an all-round way; 2) Focusing on anti-aging, kwadi has expanded its categories, and while maintaining cooperation with super head in core face cream products, it has launched the “water oil double lock” facial mask, focusing on the concept of “nourishing skin with oil”; 3) BM Jihuo strengthened the linkage sales of series products of brown rice family, launched the “Encyclopedia of brown rice” and special edition of brown rice essence water, and deepened the brand image of active ingredient experts; 4) Mibel deeply cultivates the sensitive muscle crowd, strengthens the live broadcast interactive Q & A with dermatologists, improves customer stickiness and enhances professional image. In addition, the company announced in April that it plans to jointly set up a private equity fund Hainan Haixi equity investment with Shanghai doctor group, with a total fund-raising scale of 123.3 million yuan, of which the company plans to subscribe 40 million yuan. In the future, it is expected to strengthen industry and research capabilities in the research and development of effective skin care and brand incubation, so as to support strong performance growth.
The company’s position as a global leader in the production chain of hyaluronic acid and health care industry is stable. Based on the performance of the first quarterly report of 2022, we predict that the company will achieve revenue of RMB 6.944 billion / 94.27/12.442 billion and net profit attributable to the parent company of RMB 985/13.37/1.868 billion from 2022 to 2024, corresponding to 57 times PE in 22 years. We believe that Bloomage Biotechnology Corporation Limited(688363) as a high-tech enterprise based on the research and production of fermentation bioactive substances, it has broad downstream market space and sufficient growth potential, and maintains the “buy” rating.
Risk tip: the industry competition intensifies, the promotion of new products is less than expected, and the epidemic situation repeatedly affects the terminal demand.
