Investment Rating - The report assigns an "Outperform" rating to the company, with a target price range of HKD 55.90 to HKD 59.40 per share [5]. Core Viewpoints - The company is a leader in collagen protein, with 24 years of R&D strength solidifying its product capabilities in beauty and healthcare. It focuses on functional skincare products, medical devices, and functional foods [1][22]. - In 2023, the company achieved revenue of HKD 35.2 billion, a year-on-year increase of 49.1%, and a net profit of HKD 14.5 billion, up 44.9%, primarily driven by the rapid growth of its functional skincare brand [1][38]. - The collagen market has significant penetration potential, with the Chinese collagen product market expected to grow from HKD 28.8 billion in 2021 to HKD 54.7 billion by 2025, at a compound annual growth rate of 50% [1][45]. Summary by Sections Company Overview - The company is recognized as a global leader in recombinant collagen, having pioneered the development and mass production of recombinant collagen since its establishment in 2000 [22][1]. - It has a concentrated shareholding structure, with the founders holding 59.23% of the shares, ensuring strong management control [28][30]. Financial Analysis - The company reported a significant increase in revenue and net profit in 2023, with revenue from skincare products reaching HKD 35.08 billion, a year-on-year increase of 51.1% [39][38]. - The gross margin and net margin for 2023 were 83.63% and 41.09%, respectively, reflecting a slight decrease from the previous year due to increased sales costs [42][38]. Industry Analysis - The recombinant collagen market is in its early stages of explosive growth, with the company positioned to benefit from its established brand recognition and product offerings [2][1]. - The report highlights the expanding applications of collagen in various sectors, including medical and cosmetic industries, driven by increasing consumer demand for effective skincare solutions [45][1]. Product and R&D - The company has developed a comprehensive collagen molecular library and is actively involved in the rapid industrialization of its products, with a focus on differentiated skincare brands [1][22]. - The report emphasizes the company's commitment to R&D, which has enabled it to maintain a competitive edge in the market [1][22]. Profit Forecast and Valuation - The company is expected to achieve net profits of HKD 17.47 billion, HKD 22.45 billion, and HKD 26.90 billion for the years 2024 to 2026, respectively [2][3]. - The report provides a detailed financial forecast, indicating a strong growth trajectory supported by the anticipated approval of medical injection products [2][3].
巨子生物：重组胶原蛋白领导者，产研结合铸就行业标杆