\u3000\u3 Guocheng Mining Co.Ltd(000688) 363 Bloomage Biotechnology Corporation Limited(688363) )
Core view
Bloomage Biotechnology Corporation Limited(688363) is a platform enterprise of bioactive materials in China and a leader in the whole industry chain of hyaluronic acid. Founded in 2000, the company started with hyaluronic acid as raw material, successively arranged the fields of medical terminals, functional skin care products and functional food, and formed a "four-wheel drive" strategy. The first three business revenues accounted for 18%, 14% and 67% in 2021. The management of the company has rich experience and the R & D team has strong R & D ability.
Raw material business: the company's raw material business takes hyaluronic acid as the core, and other bioactive substances open the ceiling. 1) Hyaluronic acid: the basic sector of the company and the absolute leader in the industry. The company's hyaluronic acid raw material accounts for more than 50% of the global sales market. Its business has technical advantages (leading fermentation yield, low cost, high product quality and abundant SKUs) and qualification advantages, and maintains good stickiness with high-quality customers. Benefiting from the high boom in the field of terminal applications, the market share of the company's hyaluronic acid business is stable and is expected to continue to improve. 2) Other bioactives: prospective layout, opening the ceiling of future growth. In 2021, the company's revenue from other bioactive substances was 150 million yuan, with a year-on-year increase of 120%. The revenue of several products exceeded 10 million yuan, and the R & D Progress of components such as Exedore was in the lead in China. In terms of production capacity, the Tianjin plant of the company was completed in June 2021, and the raw material production capacity is expected to be further released to ensure the long-term development of the company.
Medical beauty (medical terminal) business: brand strategy upgrading, rich product highlights. In 2021, the company's medical and beauty business brand will be upgraded and the channels will be straightened out, which is expected to fully release the vitality of medical and beauty business. In the short term, the company has many advantages in the field of medical beauty products: defense against aging Gemini needle has excellent performance after its listing; Runzhi Aqua enters the high prosperity track of Shuiguang class and has the qualification advantage of class III medical devices; Sili 516 and 532 have been approved in Hainan, which is expected to shorten the time to arrive in the Chinese market. In the long run, the company's pipeline layout is perfect, with the layout of many parts in the field of hyaluronic acid fillers and collagen, which is expected to fully enjoy the high prosperity of the medical and beauty industry.
Functional skin care products: the main driving force of revenue growth, with high profit elasticity. Relying on the raw material advantages of hyaluronic acid, the functional skin care products business has formed four brand matrices of runbaiyan, kuadi, BM Jihuo and mibeier. It has entered the high boom segment track, and the large single product strategy has been preliminarily formed. In the future, with the improvement of scale and efficiency, profits will have greater upward elasticity. In addition, the company also has a layout in functional food. We believe that with the gradual deepening of market education, the potential space is broad.
Profit forecast and investment suggestions
To sum up, the company is not "a simple biological raw material company + a medical beauty company + a cosmetics company", but a biotechnology platform company committed to the field of healthy consumption. All the strategies of the company focus on improving consumers' healthy and beautiful life experience, and its future business has great scalability and potential space. We expect the company's earnings per share from 2022 to 2024 to be 2.07 yuan, 2.99 yuan and 4.09 yuan respectively, and the target valuation of DCF is 157.85 yuan, which is rated as "overweight" for the first time.
Risk tips: the promotion of cosmetics is less than expected, the investment in sales expenses is higher, and the commercialization of medical and beauty products is less than expected.
