The 618 promotion ended, and the two major brands of Giuzi Biotech grew rapidly, consolidating their brand power. According to the official account of Juzi Biotech, (1) Kefu Mei: GMV increased 60% + in the full cycle of online channels, including Tmall increased 50% +, Douyin increased 65% +, JD increased 100% +, and Vipshop increased 200% +. In terms of rankings, Kefumei ranked in Tmall's top 3 domestic cosmetics, Douyin e-commerce's mid-year skincare brand list, and the top 5 domestic brands in the JD online and offline sales list. At the same time, the first flagship store was deployed in Chongqing to expand the brand influence.
(2) Clarijin: Online omni-channel full-cycle GMV also increased 100% +, including Tmall increased 70% +, Douyin increased 300% +, JD increased 200% +, and Vipshop increased 170% +, and brand transformation achieved results.
Short-term perspective: The two major brands have perfected the product matrix, the number of star products has increased significantly, and the cosmetics platform logic has gradually been implemented. (1) Kefumei: In '23, the “Double 11" Kefumei Collagen Stick GMV increased 200% + year on year; in '24, the 3.8 major promotion, Kefumei collagen stick products had a strong momentum, with a pre-order quantity of 100,000 + on Tmall Li Jiaqi's live broadcast; in the '24 year 618 promotion, Tmall Li Jiaqi's live broadcast room had a pre-order quantity of 200,000 +, leading in single product sales, leading single product in the entire cycle. Collagen sticks continue to perform well. Over the past 23 years, the brand has successively introduced a variety of products such as collagen milk, OK milk, collagen cream, etc.; in April '24, a new focus cream was introduced, and the product ranked 618 in the Tmall Face Cream New Product List/Douyin Brand Collagen Cream Popularity List; collagen dressing products have been ranked in the Tmall Wound Dressing/Tmall Medical Dressing Hot List/Jingdong Medical Dressing Top 1 in the JD Medical Beauty Category. (2) Creamy Gold: The brand is positioned in the middle and high-end market, focusing on anti-wrinkle, firming and whitening as the core effect. In '23, the company underwent a comprehensive visual upgrade, and the packaging with white purple as the main color showed its determination to upgrade the brand; in this 618 promotion, Collagen Daemak/ GMV increased by 100% +/ 60% +, and the new film cream ranked in the top 4 of the Tmall firming cream list. Collagen Eye Cream ranked in the top 4 of the Douyin Collagen Eye Cream popularity list, consolidating the brand upgrade.
Long-term dimension: Changpo Houxue in the medical and aesthetic market, and the company stocks a variety of collagen injection products. Hyaluronic acid & botulinum toxin occupy the market high ground. Production capacity is limited and prices are high. In the future, under the development trend of reduced recombinant collagen prices, improved biological activity, and water light compliance, they will jointly expand the collagen market. Jinbo Biotech is currently the only domestic company with Collagen 3. The high revenue growth can verify market sentiment. Giant Biotech stocks 4 collagen medical and aesthetic products, and the company has strong sales and R&D capabilities. It is estimated that the product results are good, and it is expected to break through rapidly in the pattern of oligopoly competition after launch.
Investment suggestions: Juzi Biotech is supported by R&D. The e-commerce channel transformation effect for the cosmetics business is obvious. The product matrix is gradually improved, forming two major core brands, perfect platform-based ideas; and forward-looking reserves of various products on the medical and aesthetic side.
Based on the sales data of the company's 618 promotions, 24-26 revenue was raised to 48.83/62.776/7.767 billion yuan (originally 46.64/59.02/7.247 billion), and net profit was raised to 18.94/24.22/3,010 billion (originally 17.64/22.00/2,701 billion yuan), the year-on-year growth rate was 30%/28%/24%, corresponding PE was 22X/17X/14X, maintaining the “buy” rating.
Risk warning: cosmetics boom declines; collagen competition intensifies; product development risks; medical and aesthetic approval failure.