\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
The company disclosed that in the first quarter of 2022, the revenue was 1.25 billion, yoy + 61.57%; Net profit attributable to parent company: 200 million, yoy + 31.07%; After deducting the net profit not attributable to the parent company of 183 million, yoy + 31.21%, the revenue performance slightly exceeded the forward-looking expectations.
Revenue side: skin care drives high growth
22q1 revenue is yoy+61.6%. We split and predicted that the three major business functions of skin care / raw materials / medical terminals are yoy+90%+/28%/0%, accounting for about 65%: 20%: 13%. The core pull is functional skin care. The increase in Tiktok channel / the increase in tmall channel’s self broadcast is seen by channel; The beauty of traditional Chinese medicine in the medical terminal is reshaped by the strategy and adjusted in the short term.
Profit side: increased R & D investment and improved profitability month on month
The gross profit margin of Q1 in 22 years was 77.13%, yoy-1.6pct; The net interest rate was 15.8%, year-on-year -3.8pcts, month on month + 4.3pct; The sales expense ratio is 45.1%, yoy + 1.6pct; The management fee rate is 6.3%, yoy + 0.8pct; The R & D expense rate is 6.5%, yoy + 1.5pct. The increase of R & D expense rate is mainly due to ① the increase of employee salary and equity incentive expenses ② the increase of R & D projects, resulting in the increase of direct R & D investment and outsourcing R & D expenses in this period.
Highlights:
① develop collagen business: on April 15, the company acquired 51% equity of Yierkang biology and officially entered the collagen industry. Collagen will become Bloomage Biotechnology Corporation Limited(688363) another core material. The hospital admission products such as collagen sponge and artificial bone mainly produced by Yierkang biology can further enrich Bloomage Biotechnology Corporation Limited(688363) existing medical terminal product pipeline and form a good matrix of medical terminal products, which will strongly support the sustainable development of the company’s business in the future.
② breakthrough of hyaluronic acid: April 23, The company’s “hydrolyzed zinc hyaluronate” has been approved, which is the first new hyaluronic acid raw material of “HA + zinc” approved in the industry With high zinc content, low sodium ion residue and high purity, the product can be widely used in personal care products. Under the background of stricter supervision of cosmetics, the compliance of new raw materials highlights the innovative strength of Huaxi as a solution provider of bioactive raw materials, and also provides new product development ideas for middle and downstream cosmetics enterprises, opening a new “Yellow Gold track”.
③ structure adjustment of medical beauty: at present, the adjustment of organizational structure of medical beauty has been basically completed. At present, the core of product pipeline is ironing needle, doll needle, Runzhi No. 5, etc. in the future, a product matrix including the whole face will be established. It is expected that with the improvement of the epidemic situation and the end of the adjustment of the medical and American sector, the medical terminal sector will resume large-scale production.
Investment suggestion: buy rating
The prosperity, outstanding R & D capability in the upstream, and outstanding R & D capability in the downstream of the cosmetics industry. We continue to be optimistic about the company’s long-term growth driven by raw materials, medical treatment, skin care and food. It is predicted that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.097/14.47/1.879 billion, with a year-on-year growth rate of 40% / 32% / 30%, corresponding to pe51 / 39 / 30x from 2022 to 2024, maintaining the “buy” rating.
Risk tip: the market space is less than expected, the product approval results and progress are less than expected, and the industry competition is intensified
