Summary of Jinbo Biological Conference Call Industry Overview - The recombinant collagen market is rapidly growing, expected to surpass animal-derived collagen in 2023 and reach 62.3% market share by 2027, indicating a potential trillion-yuan market [2][3] - The retail market for recombinant collagen in China is projected to grow from 28.6 billion yuan in 2023 to over 110 billion yuan by 2027, with a compound annual growth rate (CAGR) exceeding 40% [2][5] - The medical aesthetics injection market in China is also expanding, expected to reach 147 billion yuan by 2027, with recombinant medical aesthetic injections accounting for 6.4% in 2023, showing significant growth potential [2][5] Key Points on Jinbo Biological - Jinbo Biological is the only company in China with a Class III medical device certificate for recombinant collagen, having received approvals for three products: lyophilized fibers, solutions, and gels [2][6] - The company reported approximately 860 million yuan in revenue for the first half of 2023, a year-on-year increase of over 40%, with a stable gross margin above 80% [2][6][7] - The medical device segment grew by 33% year-on-year, with a gross margin of 95%, while the functional skincare segment saw a 152% increase with a gross margin of about 70% [7] Strategic Developments - Jinbo Biological has entered a strategic partnership with Yangshengtang, which is expected to accelerate research and development and broaden product offerings [2][8] - Recent management changes include the resignation of the general manager, who will continue as Chief Strategy Officer, and the chairman taking over as general manager, indicating a shift towards more integrated operations with Yangshengtang [8] - The company has raised 2 billion yuan through a private placement to support the development of a humanized database and product development platform [7][8] Market Trends and Competitive Advantages - The recombinant collagen market is expected to penetrate various application areas, including functional skincare, medical dressings, and medical aesthetic injections, with significant growth anticipated in all sectors [4][5] - Jinbo Biological's unique position as the only holder of a Class III medical device certificate in the recombinant collagen space provides a competitive edge, supported by its established product line and expanding international presence [6][7] Conclusion - Jinbo Biological is well-positioned to lead the recombinant collagen industry, with strong revenue growth, strategic partnerships, and a focus on innovation and product development. The company's developments and market trends warrant close attention for potential investment opportunities [2][8]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported a revenue of 859 million yuan for H1 2025, representing a year-on-year growth of 42.4%, and a net profit of 392 million yuan, up 26.6% year-on-year [7] - The company is focusing on expanding its product matrix, particularly in the medical device sector, and has launched new products aimed at high-end consumers [7] - The report anticipates a sales acceleration starting in Q3 2025, driven by strong demand in the skincare segment and the introduction of new products [7] Financial Data and Profit Forecast - Total revenue projections for 2025, 2026, and 2027 are 2,339 million yuan, 3,213 million yuan, and 3,943 million yuan respectively, with year-on-year growth rates of 62.1%, 37.4%, and 22.7% [6] - The forecasted net profit for the same years is 1,042 million yuan, 1,474 million yuan, and 1,867 million yuan, with corresponding growth rates of 42.3%, 41.5%, and 26.6% [6] - The company’s gross margin is projected to be 89.8% in 2025, slightly decreasing over the following years [6] Business Segmentation - The revenue breakdown for H1 2025 shows that single medical devices accounted for 75.1% of total revenue, followed by functional skincare products at 14.1% [7] - The company has introduced new products such as the HiveCOL gel, which targets the medical aesthetics market, and has seen significant growth in its functional skincare segment [7] Market Expansion - The company is actively expanding into overseas markets, with successful registrations for its products in Thailand and market access in the US and Saudi Arabia for its high-end skincare brand [7]