Since NMN went on sale two months ago, it has sold 25.78 million yuan in Tmall's flagship store: Jindawei NMN went on sale on July 9 this year. According to DRB Tmall's flagship store, as of September 11 noon, the sales volume of one bottle is 13498, and the sales volume is 21.5833 million yuan at the transaction price of 1599 yuan. The sales volume of 2 bottles is 1312 yuan, and the sales volume is 4.1958 million yuan at the 3198 transaction price. In two months, Jindawei NMN products achieved sales of 25.7791 million yuan in Tmall's flagship store.
Jindawei NMN products are sold under its own brand, with a strong brand: Jindawei NMN is listed in Doctor's Best, a subsidiary the company acquired in 2015. Doctor's Best, a 30-year American brand of nutritional supplements, began to enter China in 2016. Last year, the turnover and search index growth rate of CoQ10 was higher than that of TOP1 in the coenzyme Q10 industry. Doctor's Best not only meets the production standard of cGMP, but also meets the standard of FDA American Pharmacopoeia. Since 2008, Doctor's Best has been awarded the BETTER NUTRITION Best Nutrition and Health Product Award by the authoritative magazine of global health products for many years. (all the above data are from the company's website)
Jindawei has the advantages of the whole industry chain of health products: from 2015 to 2018, the company acquired or participated in Doctor'sBest, ProSupps, Zipfizz and Labrada, cut into the fields of traditional dietary supplements, sports nutrition and weight management, acquired Vitatech to build a mid-stream production and processing base, and participated in iHerb plus downstream channel sales, which has integrated the whole industry chain of health products from upstream raw material supply to mid-stream production and processing and then to downstream channel sales.
Branding is an important strategy of the company in the future: the company will continue to operate in the dual-main business model (that is, manufacturing business model, brand operation business model), the company's anti-risk ability is enhanced, and profitability is expected to continue to improve. Brand marketing promotion will be strengthened through three major measures: "core large items, brand e-commerce value, and fast channel strategy", which is expected to further increase the market share.
Investment suggestion: Jindawei is one of the major global vitamin A suppliers, coenzyme Q10 market share is expected to be more than 60%, health products have the whole industry chain, the strategy is optimistic about the development of NMN, the company will continue the dual main business model of "manufacturing + brand operation" in the future. It is estimated that the company's EPS will be 1.76,2.14,2.60 yuan from 2020 to 2022, and the corresponding PE will be 20.7,17.0,14.0 times respectively, maintaining a "highly recommended" rating.
Risk tips: market expansion is less than expected, downstream demand is lower than expected, product prices fall sharply, raw material prices fluctuate sharply, the risk of environmental protection, the risk of production safety. NMN products account for a very low proportion of the company's sales and do not have a significant impact on the company's current performance. The effectiveness of the company's NMN products has not been evaluated by FDA and is not used to diagnose, treat, cure or prevent any disease.