Event: recently, Jindawei issued a notice on changing the company's business scope, adding new businesses such as food management, health food sales, food Internet sales, cosmetics wholesale, sanitary products and disposable medical products sales.
Raw materials + patented technology advantages, active layout in the field of medical beauty. China's medical and beauty industry has maintained rapid growth in recent years. According to iResearch, the CAGR of the industry is about 30% in 2012-2018 and is expected to reach 300 billion yuan in 2023. Following the hot spot of consumer demand, the company has gradually carried out the preliminary development of hyaluronic acid oral liquid, soft candy and other nutritional and health foods, hyaluronic acid medical series and NMN mask, NAD mask, Q10 mask, hyaluronic acid series of beauty and skin care products, and some products have been launched to the market, such as Wukun new products NMN+ hyaluronic acid, hyaluronic acid jelly and other products have been sold in Wukun Tmall flagship store. In the field of health quick consumption in the future, the company has two competitive advantages in the beauty daily chemical sector: on the one hand, as a leading enterprise in the A-share nutrition and health industry chain, it has powerful raw material resources. according to the information of the Inner Mongolia Autonomous region investment project online approval office hall, Inner Mongolia Jindawei Pharmaceutical Co., Ltd. annual output of 200 tons of sodium hyaluronate reconstruction and expansion project has been put on record. On the other hand, the company has products to meet diversified health needs and independent innovation patents and technologies, related fields, related products can complement each other.
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. At the same time, relying on the advantages of raw materials and technology to distribute the field of medicine and beauty, it is expected to create a new engine of growth. 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 2.04,2.41,2.83 yuan in 2021-2023, and the corresponding PE will be 21.6x, 18.3x and 15.6x respectively.
Rating.
Risk hints: market expansion is less than expected, downstream demand is lower than expected, product prices have fallen sharply, raw material prices have fluctuated sharply, environmental protection risks, production safety risks, and the impact of domestic industry regulatory policies on the company's operation. 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.