This article is compiled from the Internet. I retain the backup
In the medical industry, there has always been a saying of "golden teeth, silver eyes, and copper bones", that is, the departments that make money are ranked in order. In A-shares, Jinya became popular $ Tongce Medical (SH600763)$, silver eyes were red, Aier Eye Hospital (SZ300015)$, copper bones were released $dabo Medical (SZ002901)$. We had an analysis of Tongce Medical before. The portal: https://www.toutiao.com/i6722330124001214984/
Although dental care is very expensive and dental clinics seem to be very profitable, the competition is really cruel: various chain dental hospitals sprout like mushrooms after a rain, and even a dentist can open a small clinic by spending money to buy a set of equipment. Dental is now a typical red ocean market. Moreover, there is only one Tongce Medical is a stomatological hospital in A shares, and the valuation has always been high. Are there any other opportunities?
At this time, we remembered a sentence that the stock god Buffett said:
Is there such a company in A-shares? No matter how the dental clinics fight, or which hospital will ultimately unify the world, can it make a fortune? There is indeed! This is what we are going to analyze for you today - Zhenghai Biology !
company introduces
Zhenghai Bio is a biorecycling material, and belongs to the current booming " regenerative medicine " field. Simply put, it is a problem with the part of the human body. You can use the corresponding parts of other animals (usually more pigs and cows) for processing and filling them out.
Since the raw materials are taken from other animals and implanted into the human body, it is inevitable to cause "repulsion". Therefore, the safety and effectiveness of this type of material must be strictly controlled. It will take at least 5 years from research and development to market, which destined that the product itself has a high barrier .
Currently, players in my country's regenerative medicine field are basically overseas scientific research teams returning to China with R&D results to seek investment from VCs.
Zhenghai Bio is no exception. From Zhenghai's prospectus, it can be found that the shareholders 3, 4, 5, 6 and 7 are all venture capitalists, among which 3 and 5 are joint actors, the second shareholder Longwood is an overseas technical team, and the actual controller Dong Qun. According to Zhenghai Bio's prospectus:
Dong Qun seems to be Zhenghai's R&D pillar. It can be seen from the equity structure when Zhenghai was established that Dong Qun belongs to a technical investment.
Of course, if you dig deeper, Ms. Dong Qun’s husband, Dai Jianwu, would be even more awesome.
After digging Zhenghai Bio's No. 2-7 player, let's take a look at the major shareholder - Mihaibo, who is also the actual controller of $ Zhenghai Magnetic Material (SZ300224)$. At this time, the people who are taking part in the melon may have their chins shocked: How did a magnetic material make a biofilm?
It turns out that in 2003, before Zhenghai Bio was born, Zhenghai Group was still a state-owned unit. Its main business, rare earth permanent magnet, had not yet achieved profits until 2003. While Semir Wave was thinking hard to find transformation, the Science and Technology Department of the Shandong Provincial Planning Commission brought a US technical team to return to China to look for development opportunities - Longwood. After some discussion on
, Longwood and Mihaibo hit it off. The following comes from Mihaibo's original words:
"This biotechnology is a bioregenerative tissue material technology, which may be relatively shorter than the cycle of biopharmaceuticals. It is more suitable for our company. In terms of investment, unlike pharmaceutical and biopharmaceuticals, the amount of investment exceeds our ability, so we think this may be a good project for us to cooperate with."
Since then, Zhenghai Bio was born, and it was also at this time that Zhenghai Group's equity was reorganized, and Zhenghai was completely in the hands of Mihaibo. Zhenghai Group has gradually formed a diversified industrial structure such as rare earth permanent magnets, electronic information, automotive interiors, biomedical materials, building energy-saving and insulation materials, and pawn finance. Zhenghai Bio and Zhenghai Magnetic Materials have both entered the A-share GEM.
main business
Zhenghai's main products include soft tissue repair materials: oral repair membrane, biofilm, skin repair membrane; hard tissue repair materials: bone repair materials.
Among them, soft tissue repair series products have been widely used in many fields such as dentistry, head and neck surgery, and neurosurgery. Since bone repair membranes are new products that were launched in 15 years, the rapid introduction period of such products is generally 3-6 years after they are launched, because in the early stages of the market, each hospital will conduct trial clinical tests to determine the clinical effect of the product.
It can also be seen from the revenue structure that the company's current main revenue of is from oral repair membranes and biofilm . The revenue brought by bone repair materials is not obvious due to the short listing time. However, the operating income also increased from 1.4529 million in 2015 to 11.19 million in 2018, accounting for from 1.13% in 2015 to 5.19% in 2018. Therefore, we have reason to expect that bone repair materials are a future profit growth point for the company.
company's Hai'ao oral restoration membrane currently has a market share of about 10%, ranking second in . The main competitor is BIO-GIDE of Switzerland, which also has a market share of 70%. However, a BIO-GIDE film is priced at nearly 2,000, and each Hai'ao is only 450 per piece. The clinical performance difference between the two membranes of is not large. . Currently, my country's dental implant market is 2 million per year and is growing at a rate of 30%.
Basically, one membrane is required for every tooth implantation, so as to look at the oral restoration membrane, the company's future growth is expected. As for being replaced by rising stars in China, it is unlikely in the short term. The regulation of biofilms as a third-class medical device for is very strict. It is not possible for ordinary people to enter, and they want to be long even if they enter the R&D cycle.
The company's biofilm is mainly used for the repair of dura (spine) membrane defects. It is a product commonly used in neurobrain surgery. Currently, the first-class company is Xintianfu, the second-class Guanhao Bio, and the third-class is Zhenghai Bio. There are many domestic competitors in this product, but it is very happy that the company's biofilm sales are increasing year by year.
Seeing that the company's main products sales have been rising steadily, with gross profit margins above 90%, I couldn't help but be amazed: is such a company that makes a fortune in silence ! As for the skin repair film disclosed in the prospectus, it has been no longer visible in the 2018 annual report, so we can only judge that it has been kicked out of the market.
After reading the company's main products, you will understand why we will start by saying that no matter how popular the dentistry is in , there is always a company behind it that watches the fire and wins safely, and Zhenghai Bio is the representative.
Financial Analysis
Zhenghai Bio has been on the market for two years, with a dividend and financing ratio of 45.9%, which is excellent!
Since the company has only been listed for two years and its market value is only 5 billion, the financial report is very simple and clear, and the debt-to-asset ratio has been maintained at around 10%, operating stably.
We have drawn out the company's gross profit and net profit margin for 2014-18, and the gross sales profit margin has been above 90%, and the net profit margin is also rising year by year, indicating that the company is making a fortune in silence and is constantly improving the operational link, compressing operating costs, increasing profits, and excellent!
The company's prepayment has increased year by year, indicating that the company's product competitiveness has increased and the voice in the industrial chain has increased. This indicator has always been hailed as the happiest liability~
Revenue and net profit that everyone likes and pays the most is also a fast trot, maintaining a growth rate of 30% in recent years. Even in the first quarter report of 2019, the company pointed out that the rapid growth of sales promoted the growth of production. In order to further ensure market supply, the company increased the inventory quantity. In general, it is: good company, strong technology, high gross profit, and no worries about sales.
Bioregenerative material belongs to the third category of medical device products. It is mainly used to treat, repair and replace human tissues and organs or enhance their functions. It is a typical interdisciplinary product, involving related disciplines such as materials, biology and medicine. Due to the intensification of the aging of the population of natural disasters, environmental pollution, , and population, the number of people with deficiencies or disabilities such as human tissue and organ damage has increased day by day, and the market demand for medical devices, including biological recycled materials, is increasing.According to statistics, the domestic demand for biorecycled materials in 2018 was about 510 square meters, while the market output was only 260 square meters, which was extremely unbalanced in supply and demand.
Currently, the major domestic biorecycling materials companies include Guanhao Biology, Zhenghai Biology, Tian Xinfu and other . Today I want to talk about Zhenghai Biology .
1. The company's operating conditions
was established in 2003 and mainly engages in the research, development, production and sales of biorecycled materials . The company's 2018 financial report shows that the company's revenue of oral repair membrane was 105 million, accounting for 49%; the revenue of biofilm was 96 million, accounting for 45%; the revenue of bone repair material was 11 million, accounting for 5%; other revenues accounted for only 1%.
Currently, the company's product line is relatively single, with four main products: oral repair membrane, biofilm, skin repair membrane, and bone repair material .
The company's main operating income comes from oral repair membrane and biofilm . In the past three years, the company's revenue on these two products has grown steadily. The growth rate of bone repair materials and other products is very fast and is in a period of rapid development.
The company has had relatively outstanding operating conditions in recent years. company's operating income of in the first three quarters of 2019 was 201 million yuan, and its net profit of was 80 million yuan. The company's operating income and net profit have maintained relatively rapid and stable growth in recent years. In 2018, the company's revenue was 216 million yuan and its net profit was 0.86. In the past two years, the company's operating income growth rate has remained above 37%, and the net profit growth rate has remained above 18%. Moreover, since the industry is an emerging industry with low raw material consumption, low energy consumption, and high technology added value , the industry's gross profit margin is relatively high, and Zhenghai Bio's gross profit margin has remained above 92% in recent years.
As one of the company's operating income Gemini, the company's revenue in oral repair membranes has maintained stable and rapid growth. In 2018, 's oral restorative film products generated revenue of 105 million yuan, and the growth rate in the past three years has remained above 18%.
Another main source of the company's operating income is biofilm. The revenue of biofilm products is second only to oral restoration membranes, and the operating income it creates also maintains a relatively stable growth. As of the end of 2018, the company's biofilm product revenue was 96 million, with a growth rate of 11.7% in 2018. The growth rate of operating income in recent years has changed significantly, indicating that the market competition is facing fierce.
2. Company's R&D status
The proportion of R&D investment in the operating income of the company is at an upper-middle level among biotechnology companies. In recent years, R&D investment has grown slowly, and R&D investment has remained relatively stable in data. As of the end of 2018, the company's R&D investment was 16.63 million yuan, accounting for 7.72% of its operating income; the company's R&D personnel were 47, accounting for 18.36%, and the number of R&D personnel was not significantly increased.
Currently, the company has 9 products under development, and new products will be launched in the past few years. Among them, Zhenghai Bio active biological bone is expected to be launched next year. The product dates back to 2005. The research and development of the product began in 2005. From 2009 to 2015, it was the animal experiment and clinical trial stage of the product. In 2018, it began to summarize the materials and declare to the CFDA. has just completed the review of three majors in pharmacology and toxicology, clinical and medical science. After the next step is submitted to the Drug Administration for approval, the new drug will be launched. took 14 years and will launch such a product soon. According to the company, at present, no seller in has sold active biological bone products. foreign companies Medtronic and Ssek have produced it. html's sales in 4 years are US$1 billion, but it has not been launched in China. It can be said that this product has very good development prospects.
3. Comparing with Guanhao Bio
, compare the gap between Guanhao Bio and Zhenghai Bio from the operating income and net profit. According to the data of the first three quarters of 2019, Guanhao Bio's operating income was 318 million yuan, and Zhenghai Bio's operating income was 201 million yuan; Guanhao Bio's net profit was 14 million yuan, and Zhenghai Bio's net profit was 80 million yuan. It can be seen that Guanhao Bio is larger, but its operating profit is not as good as Zhenghai Bio, and its growth is even more incomparable. Zhenghai Bio's business is stable and its business growth is faster.
compares the gap between Zhenghai Bio and Guanhao Bio in terms of gross profit margin and net profit margin. has maintained a gross profit margin of more than 92% in the past four years, while Guanhao Bio's gross profit margin is only 70-80%, and Guanhao Bio is facing greater competition. In terms of net profit margin, Zhenghai Bio's net profit margin has remained above 30% in the past four years and has continued to grow, while Guanhao Bio's net profit margin has been declining, and even fell to 7.66% in 2018.
4. Summary
Biorecycled materials belong to the blue ocean market, and demand in the future will continue to increase rapidly. The main products belong to the third category of medical devices, with a long R&D cycle, large technology intensive, and relatively high barriers. The company has comparative advantages, the industry's import substitution trend is emerging, and the development prospects are good.
Zhenghai Bio's operations are stable, with high performance and stable growth, with high R&D investment, and abundant R&D products. There will be new products launched next year to form new growth points. However, it should be noted that the company's main products are relatively single, with sales expenses and management expenses very high, and sales expenses have reached 5 times the R&D expenses. There are many products under development, which is very time-consuming and has uncertain risks.
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