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Huaxin Capital's Viewpoint: Analysis of Medical and Aesthetic Industry and Investment Target (2)

2021-06-25

2、 Industry leading company


The first echelon in the upstream of Light Medical America includes A-share Aimeike, Huaxi Biotech and Haohai Biotech. However, the total market share of the three companies is less than 30%, and there is still huge room for development. The leading company in the downstream of Light Medicine and the United States has a lean station in Hong Kong shares; The downstream companies of surgical medicine and the United States have listed medical thinking health in Hong Kong stock market. In addition, the pan medical beauty field also includes the leading era angel of dental plastic surgery, which has just been listed in Hong Kong stock market, and the leading hair transplant company, Yonghe Medical, which is about to land in Hong Kong stock market.


Aimeike is the leading track segment. As of 2019, Aimeike sodium hyaluronate injection products rank first among domestic enterprises. The market share of hyaluronic acid products exceeded 25%, the gross profit margin of competitive products exceeded 90%, and the company firmly took the lead in A-share medical and beauty industry. In 2020, the company realized operating revenue of 447 million yuan by relying on solution injection products with HI-TI as the core, with a year-on-year growth rate of 82.8%; According to the latest first quarter of 2021, the gross profit margin of the company's main business is up to 92.5%, and the neck wrinkle removing product Hi Body, which contributes 70% of its revenue, has a gross profit margin of up to 92.85%. In addition, Aimeike is also making a diversified layout of the industry, starting to create functional skin care products based on the Hi Sports brand to improve the layout of the industrial chain.


Huaxi Biotech mainly focuses on hyaluronic acid covering functional skin care business, raw material products and medical terminal products. In 2020, the Company realized an operating income of 2.633 billion yuan, with a year-on-year growth of 39.63%; The net profit attributable to shareholders of the listed company was RMB 646 million, with a year-on-year growth of 10.29%. The revenue of functional skin care products increased by 112.19% year on year. Functional skin care products business has become a business with the highest proportion of Huaxi Bio's revenue. In 2020, functional skin care products business, raw materials products and medical terminal products will account for 51.14%, 26.71% and 21.88% respectively. In the second half of 2020, the company will launch Runzhi "Baby Needle" product with micro crosslinking technology and lidocaine slow release technology, which is the first class III medical device waterlogging product in China. Compared with ordinary waterlogging, it really realizes high safety, low pain and long-term water supplement. On the other hand, on the basis of core technology, in terms of raw materials and products, Huaxi Bio is currently the only supplier of pharmaceutical grade hyaluronic acid raw materials in China and the largest manufacturer of hyaluronic acid raw materials in the world. In 2020, its sales volume has reached 195.27 tons, with a year-on-year growth of more than 5%.


Haohai Shengke arranges the leading position of medical beauty by acquisition, and its business spans the two gold tracks of ophthalmology and medical beauty. The current business of Haohai Biotech can be divided into three major parts. The high value consumables of ophthalmology include intraocular lens and optometry materials, which are the focus of the company's current layout; The R&D investment in hyaluronic acid for injection is not large, and it is basically bought, so there is a lack of growth. At present, the high-end product Haimei is launched, hoping to break the situation with this; The bottleneck of business development is also reflected in the performance. In 2020, the company achieved 1.332 billion yuan of operating revenue, a year-on-year decrease of 16.95%; The corresponding net profit was about 230 million yuan, down 37.95% year on year; The net profit after deducting non profits was only 206 million yuan, with a year-on-year decline of more than 40%.


Sihuan Pharmaceutical is an old brand cardiovascular and cerebrovascular pharmaceutical enterprise, which integrates R&D, production and sales. The company was established in 2001 and listed on the main board of Hong Kong in 2010. The company's business is currently divided into pharmaceutical sector and new business sector represented by medical beauty. In 2012, the company created Xuanzhu Biology to transform and innovate in the field of medicine. In 2014, it entered the medical and aesthetic industry and signed the exclusive agency of botulinum toxin and hyaluronic acid in China with Hugel of South Korea. At present, Sihuan Pharmaceuticals is making every effort to promote the dual wheel drive strategy of medical beauty and biopharmaceutics. In addition to the Botox Letibal, which is about to be released as an agent, Sihuan Pharmaceuticals is also laying out multiple medical beauty pipelines such as hyaluronic acid, childlike beauty needle, childlike beauty gel, girly needle, and collagen filler through "self research+agency", and is expected to be listed in succession within 3-5 years. Letibal produced by Hugel is a luxury botulinum toxin product with high cost performance ratio. Since it was approved for listing in South Korea in 2010, it has been listed in 28 countries and regions. In 2019, it will take the first place in the Korean market, accounting for 42%.


Time Angel is a leading provider of invisible orthodontic solutions in China. 97% of its income comes from invisible appliances. It ranks second in China with a market share of 41% and a gross margin of 70%. Moreover, the compound growth rate of profit in three years exceeded 60%.


Yisi Health is the largest non hospital medical service provider in Hong Kong. Services provided include medical beauty, dentists, and a variety of specialized services, general practice clinics and other services. In addition to 5 flagship medical beauty centers, 9 standard medical beauty centers, 3 plastic surgery centers and 3 independent dental centers in Hong Kong, medical beauty clinics have also been opened in Shanghai, Guangzhou and Shenzhen after the listing. Yisi Medical accelerated its investment in Dawan District, focusing on consumer medical and health services, including but not limited to medical beauty, chiropractic, dental and paediatric services. The gross profit rate is 88.34%, and the net profit rate is 6.68%.



公司名称

爱美客

华熙生物

昊海生科

四环医药

时代天使

股票代码

300896

688363

688366

460.hk

6699.hk

市值

1426亿

1177亿

290亿

305亿

640亿

PE

324

170.58

82

54

350

医美收入占比

100%

100%

19%

少于20%

97%

Note: All the listed companies mentioned are only part of the analysis and research and do not constitute any investment recommendation.


3、 Our view
1. From the perspective of industry growth, competition pattern, development space and investment risk, the light medical beauty sub industry is superior to the surgical beauty sub industry;

2. Based on factors such as technology content, upstream and downstream bargaining power, industry concentration, etc., upstream companies are superior to downstream companies in the entire industry chain of light medicine and beauty;

3. The substitution of domestic medical beauty products for imported products has just begun, and it is an irreversible trend that the imported products will be replaced by more cost-effective local brands in the future;

4. With stricter industry regulation and more standardized competition, leading companies with independent product research and development capabilities and brand influence will benefit most. Aimeike and Huaxi Bio in the upper reaches of Light Medical Beauty, Bi Shou Station in the lower reaches, the era angel of Pan medical beauty industry and Yonghe Medical have broad development space.

If you have any suggestions, please contact Huaxin Capital Investment Research Department

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