Core ideas:

Incident: The company's investment fund, Qingdao Maoda, holds 9.6% of Moyang Biotech's shares. Moyang Biotech's high-end medical and aesthetic product “Youfulan Calcium Hydroxyphosphate Microsphere Facial Filler” has been certified as the highest risk level medical device in Mexico. This certification is the second calcium hydroxyphosphate microsphere facial filler product approved in Mexico after the German MERZ company Radiesse.

Product: This product is independently developed by the Chinese. The raspberry shaped perforated structure can accurately control complete degradation and absorption within 12 ± 1 month. With the opening of the Mexican market, the product will soon enter mainstream international medical and aesthetic markets such as Europe, America, Japan, and Australia in 2025. Currently, there are three types of hydroxyapatite devices with no compliant medical and aesthetic indications in China. Currently, all three types of approved devices have medical indications (orthopedics, etc.). Recently, Moyang Biotech will soon launch its core product “Magic Face Microcrystal”. If the product is successfully approved, it is expected to become the first three-class compliance certificate for hydroxyapatite materials in the domestic medical and aesthetic facial soft tissue injection field.

Profit forecast and investment advice: The Marumi brand has strong potential, and has achieved high growth in 7 quarters since the end of '22. The company's net profit to mother is expected to be 0.35, 0.45, and 0.55 billion yuan in 24, 25, and 26, giving the company 35 times PE in 25 years, corresponding to a reasonable value of 39.25 yuan/share, giving it a “buy” rating.

Risk warning: The prosperity of the cosmetics industry is declining; e-commerce growth is slowing down; the expansion of new products falls short of expectations; and market competition is fierce.