This article is from WeChat official account:City (ID: ishijie2018)< span class = "text-remarks">, author: Wang Yihan, editor: Liu Xiao Ying, the original title: “” woman of Maotai “not fragrant? “, the head picture comes from: Visual China
How good is a woman’s money? The listed company Amic seems to be able to tell you the answer.
Imike, which was founded 17 years ago, has more than 98% of its business income derived from medical beauty hyaluronic acid products. The company’s net profit margin is 61%, which is 8% more than Kweichow Moutai, making it the “women’s Moutai” in the A-share market.
Five months after listing, the share price of Amicco once soared nearly 10 times, with a market value of nearly 150 billion yuan, and announced that 95% of its net profit in 2020 will be used for dividends.
However, compared with the company’s market value of 100 billion yuan, Amico has only 700 million yuan in revenue in 2020 due to its single product structure. As an upstart in the capital market, its stock price has fallen all the way since mid-February 2021. Within half a month, its market value has evaporated by 50 billion yuan. As of March 5, 2021, its market value is 94.8 billion yuan.
How to maintain the confidence of many investors is a major challenge currently facing Amic.
1. For every 100 yuan sold, the net profit is 61 yuan
In 1990, under the influence of the overseas boom, the founder of Amec, Jian Jun, gave up his job at the China National Cereals, Oils and Foodstuffs Import and Export Corporation, and decided to venture into the United States. But an accidental encounter in 2003 changed her life plan.
At that time, the hyaluronic acid product developed by Sweden was approved in the United States. After the injection of a lady in her 70s, her face became shiny and wrinkles were suddenly reduced.
Jian Jun, who witnessed this process, realized that this is a huge business opportunity.
The domestic medical aesthetics has just started. This product must have great potential in the future. At the age of 41, she decided to return to China.
Jian Jun, who had nothing to do with the medical aesthetics industry before, established Amic with her husband and friends, and entered the R&D and production of hyaluronic acid products.
At that time, domestic hyaluronic acidThe market is mainly imported products from Europe, America and South Korea. Although Aimeike started late, the speed of research and development is not slow. Since the launch of the first hyaluronic acid product in 2009, Amic has launched a new product every two years on average.
From 2014 to 2016, the company’s revenue increased rapidly from 75 million yuan to 141 million yuan, with an average growth rate of 38%. Since 2017, the company’s average revenue growth rate has risen to 51%, and it has ranked first in the domestic market share for two consecutive years, thus establishing the leading position of Amic in the field of medical beauty hyaluronic acid products.
The increase in revenue of Amec is mainly due to the fact that medical beauty products are very refined, and domestic hyaluronic acid products have stricter restrictions on the use of parts. At the end of 2016, the company seized the blank market of “neck wrinkle repair” and launched a new product “Hi Body”, gradually forming a monopoly in this segment.
In 2020, the company’s revenue will be 709 million yuan, of which Hibody will contribute more than 60%. At first glance, 700 million yuan in revenue is not outstanding in the A-share market, but its ability to make money is amazing.
In 2020, Amico has a gross profit margin of 92.17% and a net profit margin of 61%, which is 8 percentage points higher than Moutai’s net profit. This means that, with the same income of 100 yuan, the net profit of Aimeike is 61 yuan, while Maotai is only 53 yuan.
Compared with the two leading companies in the same industry, Huaxi Biology and Haohaishengke, Aimark also has the highest net profit margin. This is mainly because Amec focuses on the hyaluronic acid product segment, and its customers are mainly medical and aesthetic institutions and distributors, mainly direct sales, and the sales and management expenses are relatively stable.
Therefore, with the increase in revenue, the proportion of sales and management expenses of Amicco in revenue has gradually decreased, and the company’s ability to make money has increased significantly.
With its super profitability, the most prominent feature of Amike’s book is that it has money. From 2015 to 2019, more than half of Amic’s total assets were monetary funds. After landing on the ChiNext in October 2020, after the company raised 3.435 billion yuan, the balance of monetary funds at the end of the year was 3.456 billion yuan, accounting for 75% of the total assets.
Wealth is strong and confident. At the same time when the annual report is disclosed on February 8, 2021, the company announced that it intends to distribute a cash dividend of 35 yuan to all shareholders for every 10 shares based on 120 million shares.(tax included), the capital reserve will be used to transfer 8 shares for every 10 shares to all shareholders.
This also means that the proposed cash dividend amount is about 421 million yuan, accounting for about 95.68% of the net profit attributable to the parent in 2020 and 48% of the company’s total assets before listing.
This dividend intensity can be said to be unprecedented in the A-share market. It is worth mentioning that the actual controller Jian Jun holds 38.04% of the company’s shares in total and will receive a dividend of about 160 million yuan.
Spurred by performance and high dividends, the company’s share price once broke through the 1,000 yuan mark and became the third 1,000 yuan stock in the A-share market after Kweichow Moutai and Stone Technology. As “women’s Maotai.”
Second, the darling of capital
Hyaluronic acid is a colloidal substance in the human dermal tissue and is responsible for storing water. Because it can absorb its own weight1000 times the moisture, so it is called a high-quality natural moisturizing factor.
The hyaluronic acid in the human body generally starts to be lost after the age of 25. At the age of 30, there is about 65% of the juvenile period, and about 25% at the age of 60.
As the hyaluronic acid decreases, the moisture in the skin will also be lost, causing the skin to lose its elasticity and luster, and wrinkles and other aging phenomena will appear over time.
Big S once said, “Without hyaluronic acid, many female stars can’t live.”
With the development of the economy, people are more and more concerned about the United States. Therefore, more and more people regard injectable hyaluronic acid products as just needed. New Oxygen’s financial data shows that in the domestic injection medical beauty projects, hyaluronic acid-related products account for about 2/3, and botulinum toxin-related products account for 1/3.
Most injectable hyaluronic acid products have a maintenance period of only about half a year. Therefore, most consumers will choose to buy again. According to the research report of Essence Securities, the repurchase rate of the medical beauty industry is 92%, and the repurchase frequency is once every 3 to 6 months.
Consumers’ cyclical rigid demand for products has led to the advantages of raw material and product suppliers in the upstream of the industrial chain and higher profitability.
As the “Big Three” in the upstream, Amic, Huaxi Bio and Haohai Biotech are competing in an oligarchic situation, with an average gross profit margin of more than 80% in 2019. At the same time, since most of the customers are medical institutions, the company’s marketing expenses are relatively low, and the average net profit margin is as high as 36%.
Medical beauty institutions and sales platforms in the middle and lower reaches of the industry chain, due to the fragmented competition, high marketing channels and high sales expenses, generally lead to low net profit margins. Taking Ruili Medical Beauty listed on the Hong Kong Stock Exchange, Huahan Plastic Surgery listed on the New Third Board, and Xinyang listed on the US stock market as examples, their average net profit margin is only 10%.
Because of this, the upstream companies such as Amec, Huaxi Biotech and Haohai Biotech have all been sought after by capital when they went public, but Amec, the most popular in the market, seems to be more favored.
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But water can carry a boat, and it can also overturn it. Amic, who has almost all of its wealth in hyaluronic acid products, has to face the market risk of a single product structure.
3. Is the market value of 100 billion high?
On February 1, 2021, the market value of Amec exceeded the 100 billion mark for the first time. In sharp contrast, the company’s revenue of 700 million yuan in 2020.
Looking at the A-share market, as of March 3, 2021, there are 145 companies with a market value of more than 100 billion yuan, with an average revenue of 171.2 billion yuan in 2019. Among the many stocks, except for Cansino-U, whose main business income is zero because vaccine products are still in the research and development stage, the income of other companies is all higher than that of Amec.
Huaxi Bio, with revenue of 1.9 billion yuan in 2019, has a latest market value of 72.1 billion yuan; Haohai Biotechnology, with revenue of 1.6 billion yuan in 2019, has a latest market value of 19.3 billion yuan.
High market value and low income, leading to the price-earnings ratio of Amicco once exceeded 300 times. High price-earnings ratios often imply requirements for future growth rates. What investors look for is the high growth and outstanding profitability of Amicco in the future.
So, how good is the future growth of Amicco in order to meet the expectations of investors? From the professional brokerage report, maybe you can get a glimpse or two.
According to incomplete statistics from the city circles, since August 2020, a total of 25 brokerage firms have released in-depth research and quarterly performance reviews on Amic. The average forecasted revenues of brokerages from 2021 to 2023 for Amica are 1.088 billion yuan, 1.573 billion yuan, and 2.278 billion yuan. What kind of income level is this?
In 2019, the market size of China’s medical aesthetics hyaluronic acid terminal products was 4.27 billion yuan, and the compound growth rate in the next five years is expected to be 12.8%. Taking 2023 as an example, the market size of hyaluronic acid is expected to be 6.9 billion yuan. If Amec wants to reach a revenue scale of 2.278 billion yuan, it needs to expand its market share to 33%.
Previously, from 2016 to 2019, Amico increased its market share of medical beauty hyaluronic acid products from 5.7% to 14% by increasing prices and sales, an increase of 8%. However, it will be no small challenge to continue to expand the market share to 33% on this basis.
According to the Frost & Sullivan Research Report, international brands are still the dominant players in the medical beauty hyaluronic acid market. In 2019, overseas brands accounted for the top three in the hyaluronic acid product market, with a total market share of 56.8%, of which the South Korean LG brand ranked first with 22.6%.
Obviously, in the hyaluronic acid product market, whether it is an international brand or a domestic brand, it is not easy to eat one-third of the market share in a short period of time. In order to live up to the expectations of investors, Amic also needs the support of new products and new fields.
Amico currently has five products under development, among which the “Tongyan Needle” is expected to obtain a product registration certificate by the end of 2020. However, judging from the market experience of medical aesthetics products, it takes time to promote the market promotion and recognition of new products.
Take the company’s most popular Hibody as an example. The product was launched on the market at the end of 2016. Although the product revenue growth rate was very high in the following two years, the scale was less than 100 million yuan. It wasn’t until 2019 that the product scale surged to 224 million yuan, becoming the main product.
Although Amec is also breaking through other medical beauty products, it will take more time to convert it into revenue or grow into a new business growth point.
The company first aimed at another product, Botox, which is an injection-type light medical beauty project, but the product development is in the clinical trial stage, and the expected completion time is 2024.
In addition, Amec has also set its sights on the weight-loss market, but the recombinant protein drug for injection for chronic weight management is still in the pre-clinical research stage, and it is expected to complete the research and development in 2027.
As the saying goes, far can’t quench the near thirst. How to maintain the confidence of many investors in the short term is a major challenge facing Amic. Amic’s stock price hit an intraday high of 1331.02 yuan on February 18, and its market value once approached 150 billion yuan. However, it has continued to fall since then. As of the close of March 5, its share price was 789 yuan, a 41% drop from a higher point, and its market value evaporated by more than 50 billion yuan.
This article is from WeChat official account:City boundary (ID: ishijie2018)< span class = "text-remarks">, author: Wang Yihan