\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Performance review
On April 25, the company released its first quarterly report. In 2022, Q1 achieved revenue of 1.255 billion yuan (+ 62%), net profit attributable to parent company of 200 million yuan (+ 31%), and net profit not attributable to parent company of 183 million yuan (+ 31%).
Business analysis
The overall performance has gradually warmed up, and the “four-wheel drive” continues to make efforts. The company takes users as the center, adheres to the long-term brand proposition, and creates four major brands in the field of functional food. At present, the four major brands in the field of functional food have formed a matrix, and a variety of products are expected to bring profit increment in 22 years, driving the continuous growth of the company’s performance; With the gradual stabilization of the user base and the further opening of the growth ceiling in the future, the company is expected to continue to build 3-5 national brands and contribute to large-scale expansion.
The sales expense ratio decreased month on month, and the profitability continued to improve. The gross profit margin in the first quarter was 77.13%, a year-on-year decrease of 1.57pct; The net interest rate was 15.8%, a year-on-year decrease of 3.8pct and a month on month increase of 4.3pct. Among them, the sales expense ratio was 45.1%, increased by 1.6pct year-on-year and decreased by 8.56pct month on month; The management fee rate was 6.3%, up 0.8pct year-on-year; The R & D expense rate was 6.49%, with a year-on-year increase of 1.48 PCT and a month on month increase of 1.73 PCT, increasing R & D investment and creating a long-term competitive advantage. With the further demonstration of the company’s brand strength and the emergence of large-scale advantages, it is expected that the company’s sales expenses will maintain a position, so as to optimize the company’s overall profitability.
Acquire 51% equity of Yierkang biology to enrich the pipeline of bioactive products. On April 15, the company acquired 51% equity of Yierkang biology with 233 million yuan, and officially entered the collagen industry. Yierkang biological mainly produces collagen sponge, artificial bone and other hospital admission products. It has cultivated collagen medical terminal products for many years, and achieved a net profit of 13.09 million yuan from January to November 2021. After the acquisition, the company’s in-hospital product market pipeline will be further supplemented to form a good medical end product matrix and build sustainable competitiveness.
Profit adjustment and investment suggestions
We are optimistic about the continuous volume of each section of the company. It is expected that the company will realize the net profit attributable to the parent company of 996 million yuan, 1.25 billion yuan and 1.52 billion yuan from 2022 to 2024, with a year-on-year increase of 27%, 26% and 22% respectively. Maintain the “buy” rating.
Risk tips
Risk of substitution of new materials and technologies; New product R & D risk; New product registration risk; Risk of loss of core personnel; Risk of decline in net interest rate; The risk of intensified industry competition;
