Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its future performance [18]. Core Insights - The company has demonstrated significant revenue and profit growth, with a compound annual growth rate (CAGR) of 69.21% in revenue and 110.86% in net profit from 2021 to 2023 [6][18]. - The company is positioned as a leader in the recombinant human collagen market, with a strong focus on innovation and technology [18]. - The domestic market for recombinant collagen is expected to experience explosive growth, with projections indicating a market size of 1,083 billion yuan by 2027 [18]. Summary by Sections Revenue and Profit Growth - In 2023, the company achieved a revenue of 780 million yuan, a year-on-year increase of 99.97%, and a net profit of 300 million yuan, up 174.60% year-on-year [6][18]. - For Q1 2024, the company reported a revenue of 226 million yuan, representing a 76.09% increase year-on-year, and a net profit of 101 million yuan, up 135.72% year-on-year [6]. Profitability and Cash Flow - The company's gross profit margin increased from 82.29% in 2021 to 90.16% in 2023, with a net profit margin rising from 24.38% to 38.28% during the same period [9][18]. - Cash flow from operating activities has shown a steady increase, reaching 296 million yuan in 2023, a 138.57% increase from the previous year [61]. Market Position and Product Offering - The company primarily generates revenue from medical device products, which accounted for 87.15% of total revenue in 2023, with sales growing by 122.66% year-on-year [13][18]. - The company has established a full industry chain business model, from core raw materials to end products in medical devices and functional skincare [47]. Innovation and Technology - The company is recognized for its strong focus on innovation, having developed the first recombinant human collagen type III product approved for market in China [17][18]. - The company has entered the supply chain of international brands, including a strategic partnership with L'Oréal, marking a significant milestone in its growth [17][18]. Industry Outlook - The medical device industry in China is experiencing rapid growth, with a projected market size of 1,738 billion yuan by 2027 for collagen products, indicating a CAGR of over 50% [18]. - The government has implemented supportive policies for the biomanufacturing industry, which is expected to benefit the company's growth trajectory [63].
锦波生物首次覆盖报告：重组胶原蛋白龙头，成长空间广阔