HAOHAI BIOTEC(SH:688366) Minsheng Securities·2024-05-13 13:30Investment Rating - The report assigns a cautious recommendation rating to the company, indicating a potential upside of 5% to 15% relative to the benchmark index [43]. Core Insights - The company has a strong competitive position in the high-end hyaluronic acid market, with its third-generation product "Hai Mei" experiencing significant growth. The medical aesthetics business is expected to maintain a rapid growth rate due to improved consumer spending and product competitiveness [55]. - The report highlights the rapid expansion of the non-surgical medical aesthetics market in China, with the market size reaching approximately 120.7 billion yuan in 2022, accounting for 53.2% of the total medical aesthetics market [5]. - The company has diversified its product offerings in the hyaluronic acid segment, with three main product lines: "Hai Wei," "Jiao Lan," and "Hai Mei," each targeting different market segments and consumer needs [8][10]. Summary by Sections 1. Medical Aesthetics Business - The company’s hyaluronic acid products have shown strong growth, with revenue growth rates of 91.5%, 61.5%, and 41.3% from 2021 to 2023. Future growth is projected at 35.9%, 32.1%, and 30.1% for 2024-2026 [55]. - The "Hai Mei" product is positioned as a high-end hyaluronic acid with unique features, gaining market recognition and expanding rapidly [16][18]. 2. Market Dynamics - The domestic market for hyaluronic acid fillers is growing rapidly, with a compound annual growth rate (CAGR) of 19.7% from 2017 to 2021. The market size reached 6.4 billion yuan in 2021 [5]. - The competitive landscape is shifting towards domestic brands, with significant market share gains due to technological advancements and cost-effectiveness [5]. 3. Product Development - The company has a robust pipeline of innovative products, including the fourth-generation organic cross-linked hyaluronic acid, which is currently in the late stages of registration review [30][53]. - The acquisition of Euroha Medical is expected to enhance the company's product matrix and boost revenue growth in the laser and radiofrequency device segments [20][24]. 4. Financial Projections - The company’s total revenue is projected to grow from 2.654 billion yuan in 2023 to 4.813 billion yuan by 2026, with a consistent increase in gross margin [39]. - The medical aesthetics segment is expected to maintain a high gross margin, projected at 78.5%, 79.1%, and 79.4% for 2024-2026 [55].