Recently, the medical aesthetic industry has been very lively!
Benefiting from the volume of medical cosmetology business, Huadong Medicine's performance in 2023 will hit a record high, attracting 300 institutions for research.
In addition, Kangtuo Medical and Haochen Medical have added "medical beauty concepts", and these two pharmaceutical companies have also begun to do medical beauty business.
Although there are only 3 A-share companies mainly engaged in medical aesthetic products, such as Aimeike, Haohaishengke and Bloomage Biotechnology, there are 73 companies with medical aesthetic concepts.
Among them, there are many star companies in the pharmaceutical industry such as Yunnan Baiyao, Changshan Pharmaceutical, Aier Ophthalmology, Fosun Pharmaceutical, and Tongce Medical.
Even Langzi Co., Ltd., which used to make women's clothing, has also entered the medical cosmetology track through mergers and acquisitions, and now the revenue of medical cosmetology business has accounted for more than 40%.
So, why are so many companies cross-border medical aesthetics?
To do business, choosing the right track is very important.
After all, small rivers and streams can only produce small fish and shrimp, and the sea can produce whales.
Medical cosmetology is one of the few good tracks that can produce whales, and many outside companies want to share a piece of the cake.
First of all, the market is huge.
In 2023, the market size of China's medical aesthetic industry will be 266.6 billion yuan, which is still when the penetration rate of medical aesthetics is only 3.6%.
With the increase in everyone's acceptance of medical cosmetology, it is expected that the market size of medical cosmetology will reach 638.1 billion yuan in 2030.
Secondly, it is in the growth period.
The rapid growth of industry demand in the growth period is more like a young man full of vitality, with less risk than the start-up stage and more opportunities than the mature and recession periods.
Another point is that medical aesthetics is a lucrative business.
A gram of gold is about 600 yuan, and 1ml of medical beauty injection is about 2,000 yuan cheaper, and more than 10,000 yuan is more expensive, which is more expensive than gold, and it is difficult not to be tempted.
However, although the medical beauty track is good, the companies in it are uneven.
Among the 73 companies with the concept of medical aesthetics, Aimeike has the highest certainty and growth.
Aimeike is recognized as a leading medical cosmetology, mainly including solution and gel injection products, and these two major businesses will account for more than 98% of the revenue in 2023, with a very high degree of focus.
The main ingredient of the solution is hyaluronic acid, which represents the product and is used to improve facial depression.
The main ingredients of the gel are PLLA (L-lactic acid) and cross-linked sodium hyaluronate, which represent the products of white angel and angel, which have the effect of stimulating collagen regeneration, with higher technical barriers and stronger premium ability.
From four perspectives, Aimeike's core advantages are outstanding and have built a deep moat.
First, the perspective of industry status
Aimeike is the first medical aesthetic company to enter the market, with a first-mover advantage and a firm grasp of market share.
According to the data, in the domestic sodium hyaluronate dermal filler market, Aimec has ranked first in market share for 4 consecutive years since 2018, and the market share in 2022 is 14%, which is the sum of the market share of rivals Bloomage Biotech and Haohaishengke.
What's even more surprising is that the company's neck tattoo needle market share is close to 90%, almost monopolizing the market.
Aimeike is a well-deserved king of the medical beauty track.
Second, the perspective of anti-risk ability
If the gross profit margin is the first barrier for enterprises to resist risks, then the strongest anti-risk ability of A-shares is Aimeike.
Since 2020, the company's gross profit margin has been greater than 90%, higher than Moutai, ranking first in A-shares.
In addition, because the company's products are mainly sold to hospitals, medical beauty institutions, etc., they belong to B-end sales, and the sales expense rate is controlled below 10%.
The expense side has greatly released the net profit, and the company's net profit margin is greater than 60%, and the profitability is strong.
Aimeike is the only A-share company with a gross profit margin greater than 90% and a net profit margin greater than 60% in the past four years.
Not only that, with the increase in the proportion of revenue from high-gross margin products, from 2020 to 2023, the company's gross profit margin and net profit margin will be on the rise as a whole, and the ability to resist risks will continue to increase.
Third, the perspective of business results
In the big consumption track, performance is king, which is the best indicator to measure the company's operating results.
Unlike Haohai Biotech and Bloomage Biotech, under the trend of increasingly strict supervision of medical cosmetology, Aimeike's performance is not only stable, but also grows against the trend.
From 2019 to 2023, the company's revenue increased from 558 million yuan to 2.869 billion yuan, an increase of 414% in five years, and its net profit increased from 306 million yuan to 1.858 billion yuan, an increase of 507% in five years.
Moreover, Aimeike's performance is water-free, which can be seen from the dividends.
Now the supervision has strict requirements for the ability of enterprises to pay dividends, which is to let enterprises prove the authenticity of their performance, after all, profits can be faked, and real money cannot be created.
Aimeike's historical dividend rate is 52.73%, surpassing Kweichow Moutai, Haitian Flavor, Gree Electric, Hengrui Pharmaceutical, Pien Tze Huang and other super white horses, and the performance is very real.
In addition, since 2021, Aimeike has been digesting the previous high valuation, and now the dynamic PE is only more than 30 times, which is lower than comparable companies such as Haohai Biotech, Bloomage Biotechnology, and Proya.
According to the first quarter report of 2024, Aimeike's revenue and net profit have increased by more than 25% year-on-year, and Davis is expected to achieve performance growth and valuation improvement in the future.
Fourth, the perspective of future growth
Although the medical cosmetology industry is becoming more and more strictly regulated, it is beneficial and harmless to industry leaders like Aimeike.
Based on strong product advantages, the company's future growth is still very strong.
In terms of existing products.
With the increase in the penetration rate of medical aesthetics, the revenue of this business will double to more than 3.2 billion yuan in 2025.
The market size of regenerants in 2023 will be 2.72 billion yuan, and it is expected to reach 11.52 billion yuan in 2027.
Aimeike's White Angel (commonly known as Maiden Needle) is the first domestic and world's first approved regenerative agent product containing L-lactic acid.
Now there are only three competing products in China, although the effect is almost the same, but the white angel has an advantage in price, and it is easier to obtain the market.
In addition, the company's Rusheng Angel will be listed in 2023, and the next 2 to 3 years will be a period of rapid expansion, which will help enhance the flexibility of performance.
Under the shortage of market supply, the revenue of Aimeike's regenerative agent products is expected to increase from 851 million yuan in 2023 to 3.035 billion yuan in 2027, contributing to a very high performance increment.
R&D pipeline.
According to the 2023 annual report, Aimeike has 9 research projects, covering botulinum toxin, slimming injections, recombinant proteins and other directions.
The most interesting thing in recent times is botulinum toxin.
Aimeike is the only legal distributor of botulinum toxin type A in China by the South Korean company Huons.
The company's botulinum toxin is in the application stage, ahead of Huadong Pharmaceutical, Fosun Pharma and other companies, and is expected to be listed in 2024 to occupy the market first.
Finally, to sum up.
Aimeike is in a golden track with a broad market space and a rapidly increasing penetration rate, and is the only company with a gross profit margin of more than 95% among more than 5,000 listed companies.
In the future, driven by strong products, shares and performance advantages, the company's growth will still be strong.
The above analysis does not constitute specific investment advice. The stock market is risky, and investors need to be cautious.
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Source: Flying Whale Investment Research