Lushang Freda Pharmaceutical (SH:600223) FBeauty未来迹·2025-05-23 14:43Core Viewpoint - The beauty industry is currently experiencing a "ingredient dispute" focusing on two key ingredients: hyaluronic acid and recombinant collagen, which has expanded to discussions on business strategies of leading beauty companies, the ecological environment of the industry, and the public sentiment in the capital market [2][3] Summary by Sections Hyaluronic Acid - Hyaluronic acid, known scientifically as hyaluronic acid (HA), is a crucial component of human tissue, comprising about 50% of the total amount in the skin, and is recognized for its powerful moisturizing, soothing, repairing, and anti-aging properties [5][6] - Historically, hyaluronic acid was monopolized by foreign companies in the 1980s, making it expensive and inaccessible to the Chinese market. Furuida Biotech broke this monopoly by developing a microbial fermentation method, reducing the cost of hyaluronic acid by 90% [6][8] - Furuida has established a complete industrial chain centered around hyaluronic acid, covering raw materials, pharmaceuticals, cosmetics, functional foods, and medical devices, and has created several well-known beauty brands [8][10] Recombinant Collagen - The recombinant collagen market in China has grown from 1.5 billion yuan in 2017 to 10.8 billion yuan in 2021, with a projected compound annual growth rate of 42.4% until 2027 [11] - Recombinant collagen is seen as a next-generation regenerative medicine material, offering advantages such as no viral risk and high biocompatibility, and is expected to complement hyaluronic acid in skincare [13][14] Furuida's Strategic Moves - Furuida has recognized the complementary relationship between hyaluronic acid and recombinant collagen, launching its first medical beauty brand, Kemi, in December 2023, and investing in a production line for recombinant collagen [14][16] - The company has achieved significant milestones in recombinant collagen research, including obtaining medical-grade material qualifications and developing various types of collagen with multiple patents [16][18] Market Performance - Furuida's cosmetics sales revenue reached 2.475 billion yuan in 2024, with a gross margin of 62.57%, indicating a stable performance in its main business segment [17][18] - The dual focus on hyaluronic acid and collagen has led to rapid growth for its brands, with the Yilian brand achieving 963 million yuan in revenue in 2024, a year-on-year increase of 12.36% [20] Future Outlook - Both hyaluronic acid and recombinant collagen have significant growth potential, with recent research highlighting the extracellular matrix (ECM) as a new frontier in anti-aging studies [20][21] - Furuida's innovative approach, including the development of a breakthrough ingredient that accurately restores ECM protein composition, is redefining the application boundaries of collagen [21][22] - The success of hyaluronic acid represents a model for the Chinese beauty industry, showcasing the potential for multiple "hyaluronic acid effects" to drive industry growth and global competitiveness [22]