\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Key investment points
The company released 22q1 performance, and the company’s performance met expectations. (1) Revenue: 1.25 billion yuan / yoy + 61.6%, resulting from the substantial increase in the sales revenue of functional skin care products; (2) Net profit: the net profit attributable to the parent company is RMB 200 million / yoy + 31.1%, and the net profit attributable to the parent company after deduction is RMB 180 million / yoy + 31.2%; (3) Operating cash flow: the net cash flow from operating activities was – 220 million, mainly due to the increase in 22q1 payment of accounts payable, employee compensation payable and the increase in sales revenue.
Profitability fluctuates slightly, and it is optimistic about the improvement of profit margin in the medium and long term. (1) Gross profit margin: the gross profit margin of Q1 in 22 years is 77.1% / – 1.6pcts; (2) Period expense rate: the sales expense rate of Q1 in 22 years was 45.1% / + 1.6pcts, the contribution of efficacy skin care revenue increased, the continuous high marketing investment led to the growth of overall sales expenses, the promotion of brand scale and brand strength in the medium and long term, and the sales rate of cosmetics stabilized to a reasonable range; The management fee rate was 6.3% / + 0.8pcts, which increased slightly; The R & D investment increased by 109.24% year-on-year to 81 million, and the R & D expense rate increased by 1.5pcts to 6.5%. The company focuses on the field of synthetic biology. The introduction of R & D management team from enterprises and universities outside China has been preliminarily completed. At present, multiple platforms such as functional sugar synthesis biotechnology platform, functional protein and amino acid synthesis technology platform have been built; (3) The overall net profit rate is 229.7pcs / – in the medium and long term, and the net profit rate is expected to be improved by 223% in the future.
Business update: raw materials (new raw materials have passed the record) + cosmetics (Tiktok is developing at a high speed) + medical terminals (layout collagen). We are optimistic about the diversified development of the company’s business. (1) Raw materials: Based on the deep cultivation of hyaluronic acid raw materials, we focus on the development of other bioactive substances and synthetic organisms. On April 23, “hydrolyzed zinc hyaluronate” passed the filing of new cosmetics raw materials of the State Food and drug administration, marking the initial success of the company’s “hyaluronic acid +” raw material scheme. Other bioactive substances have a high growth in 21 years. In the future, we will contribute to the increment of raw material business, from hyaluronic acid raw materials to ergotathione, NMN, bird’s nest acid Collagen and other subdivided raw materials. (2) Cosmetics: with the advantage of R & D technology, the company has created an industrial development route of “science technology product brand” and deepened the differentiated positioning of various brands. The four major brands have made great efforts in the Tiktok channel and performed brilliantly. Muscle activity has ranked the top 20 in the beauty category for many times. Tmall channel has performed brilliantly and reduced its dependence on superheads; The product side continues to push through the old and bring forth the new, and launched a variety of new products, enabling brand development with technology, with clear distinction between brands. The revenue volume of runbaiyan exceeds 1 billion and the cost is reasonable. It is optimistic about the initial performance of the two major brands of mibel and Jihuo, contributing to the high growth of cosmetics business. (3) Medical terminal: it has completed product pipeline sorting, brand positioning adjustment and strong middle platform organizational structure construction. After the upgrading of business module, the organizational operation efficiency is improved, and the launch of new products is promoted in an orderly manner. It has acquired 51% equity of Yierkang biology, entered the collagen industry, arranged artificial bone, collagen sponge and other products, developed new product pipelines, and is optimistic about the coordinated development of both sides.
Investment suggestion: in the future, the advantages of R & D enabling raw materials, the continuous high growth of functional skin care business, the gradual realization of the strategic adjustment effect of medical and American organizational structure, and the sustainable development of food business. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 990 million / 1.34 billion / 1.86 billion, with a year-on-year increase of 25.8% / 36.4% / 38.5%, maintaining the “buy” rating.
Risk tips: the risk of intensified industry competition, the risk of new product R & D and registration falling short of expectations, the risk of loss of core technicians, and the risk of food business development falling short of expectations.
