Huaxi Biological (K1武汉夜生活9058) New Shares Report: Dismantling Huaxi Biological
Company profile: B2B hyaluronic acid raw material leader expands B2B2C medical beauty and B2C cosmetics business.
Huaxi Biological established two leading technological platforms for hyaluronic acid production in the world using microbial fermentation and cross-linking technology platforms. It subsequently generated raw material advantages. In 2011, it expanded the hyaluronic acid medical beauty injection business;After experience in the raw materials market and the medical beauty industry, the company’s subsidiary Runbaiyan brand skin care line entered Tmall in 2016.
In H1 2019, the company realized revenue 8.
09 million yuan (+44 compared with the same period last year).
33%), net profit attributable to mother 2.
650,000 yuan (+40 compared with the same period 杭州夜网 last year).
22%), in which the raw materials / medical end products / functional skincare business have annual growth rates of 13 respectively.
78% / 51.
66% / 122.
06%; Analysts expect the company’s annual growth in the first three quarters of 2019 to range from 40% to 50%, and net profit growth to range from 30% to 40%.
In the first quarter of 2019, the raw materials / medical end products / functional skincare business accounted for 48% of revenue, respectively.
61% / 25.
00% / 26.
Raw material business: The world’s sales volume is the first, and the technology is the world’s leading.
In 2018, the sales volume of hyaluronic acid raw materials was 175 tons and the income was 6.
500 million, a compound growth rate of 16-18 years 19.
The company has the largest market size of hyaluronic acid raw materials, with a global city share of nearly 36% in 2018; product specifications and approval numbers are complete; its technology is ahead of its peers, and it has independent research and development of biological fermentation technology and gradient 3D cross-linking technology.Big core technology.
The company’s hyaluronic acid raw material capacity utilization rate exceeded 100% in the first quarter of 2019. The strong demand for downstream medical beauty and medical products is expected to support the rapid expansion of the raw material business.
Medical terminal business: complete qualifications and specifications, quickly grab market share.
2018 revenue 3.
1.3 billion, with a compound growth rate of 27 in 16-18.
79%, with hyaluronic acid needles as the core skin products accounted for 75%, orthopedic products 16-18 years compound growth rate of 78.
3%, revenue accounted for 19%, is expected to become a new growth engine.
The company is the first domestic manufacturer to obtain CFDA approval for modified sodium hyaluronate gel (hyaluronic acid needle) for injection. Among the five domestic manufacturers, the product specifications are the most abundant.CE certification.
The revenue of medical terminal products is still small, with 68 in stock.
8 ppm, a growth rate of about 15% in the domestic pharmaceutical grade hyaluronic acid end product market, the company’s medical beauty, orthopedics, ophthalmology products can increase room for growth.
Through cooperation with South Korea’s Medytox, the company will increase the botulinum toxin (thin face needle) business line in the future.
Functional skin care products: Sit on the edge of raw materials and stand on the air track.
2016-2018 functional skin care business achieved operating income of 0.
64 ppm / 0.
95 ppm / 2.
900,000 yuan, accounting for 8% of total revenue.
79% / 11.
70% / 23.
Due to the company’s raw material supply advantages, the gross profit margin of skin care products is significantly higher than its peers. In 2018, the gross profit margin of this business was as high as 83.
Huaxi Biological takes bioactive substances degraded by fermentation technology as its core raw materials, features sub-polluted stock solution as its main category, “Run Baiyan” as its main brand, and “lab components” as its main style, and constantly enriches its category structure and brand matrix.
The company’s cosmetics business sales channels are mainly online self-employed, accounting for more than 70%. Through the expansion of the business scale, the proportion of online brand distribution in 2018 has increased.
The main brand Runbaiyan’s Tmall flagship store will be on the 17th in 2018.
The actual sales of 90,000 people reached 9688 million GMV, ranking 89th in the Tmall beauty skin care GMV category, with a per capita consumption of 540 yuan, and a repurchase rate of 21 that year.
The company’s advantages in raw materials and advantages create a skincare brand that directly faces end consumers. It is located in the high-speed growth period of new product promotion and new customer solicitation. The sales of new products and new customers in 2018 were 69.
15% / 70.
Risk reminder: New product development progress is less than expected risk; industry competition intensifies risks; pharmaceutical policies may affect more than expected risks; end-product sensitization risk; end-product marketing effects are not up to expected risks, etc.