2019, globalization of trade and economic shocks continued, multiple factors affected the Chinese economy, but also had moved forward in the fluctuations. Recalling the 2019 capital market, one of the highest frequency of winter comes as keywords appear. A general decline in the scale of financing businesses, corporate financing more difficult, many companies can not get over it in winter, fell before dawn.
According to Qing dynasties Research released the first 11 months of 2019, total equity market and fund-raising 1.08 trillion yuan, down 10%; total investment of about 730 billion yuan, down 29.5%.
Have to say, "South" has become the norm in business survival in 2019, layoffs, spending cuts, and some contraction in business ...... the end of 2019, the growth of some deep trouble in 2019, and even a lot of big companies have put to live for the winter grain storage.
Winter the best test of the viability of enterprises, this environment, businesses are able to increase minority, fast-growing companies is rare. November has just landed biotechnology companies Huaxi Sheng was Kechuang board, which is in a minority.
As the world's largest hyaluronate (hyaluronic acid) raw material manufacturers, Huaxi Sheng was the core team as early as the 1990s began research on hyaluronic acid. Today, 20 years after the establishment of Huaxi Sheng matter has become a global business enterprise products throughout the medical, functional skin care products, health food, personal care and other fields.
2019 can be said to be a blessing in Huaxi Sheng was, after the "Forbidden City lipstick" explosion of red, 20-year-old ran into Huaxi Sheng was established Kechuang board. Thus, in the November 6, Huaxi Sheng was successfully landed Branch board, the first day of issue price of 47.79 yuan rose 78 percent to 85.1 yuan. Capital perspective, Huaxi Sheng was its listing board at the branch is successful.
But listed no opportunistic, nor want to go on the last. Huaxi Sheng was selected 2019 into the arms of Kechuang board, or for the outside world in recent years, its fundamental surprise development performance. 2018, Huaxi Sheng revenue was 1.26 billion yuan, an increase of 53.7%; female buckle non-normalized net profit of 420 million yuan, an increase of 90.9%.
Whether revenue or net profit, this growth rate, it is hard to imagine Huaxi Sheng was already a business more than 20 years of business. Because, under the general law, the company matured, often more difficult to achieve substantial growth.
Close of the year 2020, next year's Huaxi Sheng was also engraved whether this growth, people continue to see it, "the strength of the outbreak" side?
The stock has stabilized
The stock market is the capital of the enterprise valuation of most real attitude. High price, high market capitalization, enterprise is the capital market "meat and potatoes", such as apples, Ali, these tech giants Amazon. However, under normal circumstances, the dynamic of the stock more valuable than the static share price reaction because it is a period of time, capital markets trading rules in the market perception of corporate value.
About dynamic stock price, relatively speaking, more often than stable fluctuations better, prices are often better than down. Huaxi Sheng was listed for less than two months ago, after moving the stock long enough period of time, but also has a certain reference value, which can be seen how much the attitude of the capital markets Huaxi Sheng matter.
Huaxi Sheng was about stock prices, we can look at three stages. The first stage, a few days ago listed inflation. Huaxi Sheng was directly stock soared to $ 100 or more. Familiar Kechuang board who may be more clear, the initial listing spikes or fall, is already Kechuang board of listed companies the norm, because the pricing system board Kechuang more to the market.
The second phase, after the hundred dollar share price correction. After the stock price to 100 yuan, Huaxi Sheng undergoes a transient shift adjustment hundred, then down callback bottoming in early December, shares about 80, still about 60% higher than the issue price. At this stage, the market gradually rational, but the first day of listing shares almost the same support points, indicating that the market is still optimistic about the Huaxi Sheng matter.
The third stage, stabilization stage after callback. Since December, the stock price began to Huaxi Sheng was on exploration, up nearly 90 yuan. For now, Huaxi Sheng into the basic material price stabilization period, if there is no obvious bullish or bearish factors to stimulate high probability will continue to fluctuate within a certain range.
Three stages down, capital markets view of Huaxi Sheng relatively straightforward matter of fact, that is based on current performance, the real value of Huaxi Sheng matter than its issue to be much higher valuation. According to statistics, as of December 23, in Kechuang board listed 68 companies, five companies break, 20 companies rose less than 50%, 22 companies rose 50% to 100%, 17 companies rose 100%, 67% increase was Huaxi Sheng, in the upper reaches. If compared to other Kechuang board of listed companies, it can be found Huaxi Sheng exhibits relatively high.
Overall, stock prices Huaxi Sheng was the signal tends to be stable, as to the future performance of future stock price movements, or depending on Huaxi Sheng was able to impress the "harsh" investors again.
Effect powerful industry outlet
In recent years, under the sink gradual improvement of infrastructure, continued growth in household income and other positive stimulus, China C-terminal consumer market presents a more obvious trends, such as consumer upgrades, sinking economy, turning the US economy.
On the one hand, these trends led to the consumption of heat-related areas of goods, fast drive market deal size grew to US medical Yen economic value represented by, for example, the data predicted that China's health industry in the United States in 2023 will reach 360 billion yuan. On the other hand, these outlet trend continues for a long time, which means at the outlet in industries and enterprises, will benefit from these long-term consumer trends.
For Huaxi Sheng matter, the coming year, it's the quality of growth, in fact, to a certain extent also depends on his face outlet effects industry. In other words, the outlet dividend few or many, vent effect is strong or weak, will affect the performance of Huaxi Sheng matter.
According to the prospectus Huaxi Sheng matter, its main business, including raw materials, medical end products, functional skin care products three items. And then based its final product flow point of view, medical (ophthalmology, orthopedics, etc.), beauty (skin care products, cosmetics, etc.), three health food industry is the main root.
Attention from the point of view, these three sectors are currently more popular, there are also more significant trends or outlet in the industry.
First, the economic value of the Yen outlet. Yan economic value actually very wide range of radiation, in addition to the physical consumer goods, entertainment and beauty-related virtual technology products, has been highly sought after, such as various beauty APP. QuestMobile recent report shows that as of 2019 Q3, the US medical industry MAU has exceeded 10 million, an increase of about 300 million from the beginning. In recent years, in improving the popular belief, lower consumer costs and other factors driving change America needs to be sustained excited, consumer goods and services trade with the United States about the scale of the potential blowout.
For now, the economic value of the Yen outlet focused, because the audience large-scale, high audience attention, so the phenomenon of explosive products will still be the norm. This means that, to create a counterpart of goods and services business, will be the biggest winner Yan economic value of dividends.
Second, a large healthy outlet. Ai media data report notes that in 2018 China Health Industry revenue over 5 trillion expected in 2020 to more than 9 trillion. Currently, three major health industry has shown a very clear trend: first, younger consumer groups; second, the industrial technology of data; third, explicit consumer demand. The future, such as health food, health care equipment and other large health products, penetration will be higher.
Third, the reform of medicine outlets. In recent years, high-frequency medical reform policies frequently landing, pharmaceutical companies compete more towards the forefront of technology and research and development. In the huge size of the pharmaceutical market to stimulate consumer, pharmaceutical companies develop innovative high-speed state will continue for a long period of time, which means that manufacturers of raw materials and high-end pharmaceutical manufacturers will occupy a certain geographical advantage.
For Huaxi Sheng matter, the "Forbidden City lipstick" has proven its value to enjoy the Yen economic dividends. The next year, Huaxi Sheng was still the face of these strong industry outlet, if we can keep the existing push new state and stamina, then get more bonus is not a problem.
"Moat" and the new "engine"
"Moat" is the unique assets of the enterprise, often play "a move enemy" or "the enemy without fighting the soldiers," the effect upon competition. In Warren Buffett's investment philosophy, the company "moat" is a very important fundamentals, the "moat" of the enterprise, there will be more long-term development.
Huaxi Sheng was passed more than 20 years, if there is no "moat" is categorically impossible to survive so far. Comprehensive information from the prospectus of view, Huaxi Sheng was able to go now reason, still have from three perspectives.
First, technologies and platforms.
In the 1990s, Dr. Guo Xueping, chief scientist Huaxi Sheng was the first in China to break the microbial fermentation production of hyaluronic acid, Dr. Guo Xueping also was awarded the 2002 Ministry of Health Jieping - Paul Janssen Award for medical research. This technology has changed our hyaluronic acid extracted from animal tissues (rooster combs, umbilical cord) and mainly rely on imports in the backward situation. For over 20 years, Dr. Guo Xueping has been developed as a matter Huaxi Sheng leaders, including the initial technical backbone to lead the R & D team constantly innovation, form a strong technical strength and advantages of Huaxi Sheng core material.
In research and development and production of hyaluronic acid, Huaxi Sheng was now formed with two main technology platforms: microbial fermentation technology platform, cross-linking technology platform, and are based on two of the four technology platforms: microbial fermentation production of hyaluronic acid, an enzyme cut method for mass production of low molecular weight hyaluronic acid and oligomers hyaluronate, efficient cross-linking techniques, sodium hyaluronate injection terminal sterilization. In 2005, Huaxi Sheng was also due to the innovation of hyaluronic acid fermentation technology has made achievements in the "National Science and Technology Progress Award." This year, the Huaxi Sheng was "prepared oligomer restriction method and the resulting hyaluronate hyaluronate oligomers and application" technology received the highest award of Chinese intellectual property community - China Patent Gold.
Technical ability to determine efficiency and productivity. According to the prospectus, the industry reported fermentation yield the optimum level of 6-7g / L, while Huaxi Sheng was able to do 10-13g / L. From 2008 to 2018, its hyaluronic acid production increased from 0.8 tons to 180 tons. It is noteworthy that, the data show that in 2018 global production of about 500 tons of hyaluronic acid, which means that, Huaxi Sheng matter accounted for 36%. So, technology brings advantages of scale, but also Huaxi Sheng key reason was the lead position in the industry.
Second, globalization registration qualification. According to the prospectus, in the field of pharmaceutical grade product, Huaxi Sheng was a total of seven qualifications in the country in the European Union, the United States, Japan, South Korea, Canada, a total of 21 international qualification. European, Japanese and domestic pharmaceutical standards, Huaxi Sheng hyaluronic acid is the main quality parameters are much higher than national or international standards.
So easy to imagine that globalization was registered qualified Huaxi Sheng is the key to obtaining their higher standards of product quality. This also allows Huaxi Sheng was the world's many well-known companies formed a stable customer relationships.
Third, complete industrial chain. Hyaluronic acid industry, Huaxi Sheng matter is typical of the whole industry chain enterprises, despite its strong genetic technology and manufacturing, but in covering the downstream industry chain, Huaxi Sheng matter and touch up, and as much as a lot of the terminal completely to C Retail Enterprises.
Currently, terminals have been formed was Huaxi Sheng supply mode B2B, B2C, B2B2C's. For a bio-manufacturing business, to B is the basis of ability, but it is the test to C dealings with consumers, as well as production capacity in line with market demand for the finished product. As can be seen from the "Forbidden City lipstick" case, Huaxi Sheng was already have some experience in the market to areas C.
In summary, in the technical qualification, the three major aspects of the industry chain, "moat" Huaxi Sheng was in the industry is relatively unique, and perhaps this may well explain the 21-year-old Huaxi Sheng was still high growth of "inverse law of development" because it has taken the initiative to connect to a wide range of C-terminal market.
Under such a "moat", Huaxi Sheng was in fact, has been constantly looking for growth. Functional skin care products currently Huaxi Sheng was becoming a powerful revenue engine. According to the prospectus, 2019 Q1, its revenues have been waiting for almost the same in the year 2017, the proportion of total income also from 8.79% in 2016, raised to 26%.
From the point of view of revenue growth, rapid growth in 2018 shows that Huaxi Sheng was perhaps in 2018, it has a functional skin care products as a strategic business focus, in this early layout, Huaxi Sheng was functional skin care product embarked on a high-growth stage of development. For now, this development momentum is still very fierce in the coming year, functional skin care products business in the main business status Huaxi Sheng was, inevitably will further increase.
2020 Keywords: structural growth
Combined with stock prices, industry outlet, moat and other terms, Huaxi Sheng were held with the growth rate similar to the short period of time now, it is not difficult. Of course, this must be based on two conditions: first, there is no major bad; second, the implementation of the current strategy. Conversely, if more favorable factors landed on hyaluronic acid industry, or Huaxi Sheng itself, then it will probably grow to new heights.
From the part of the financial data Huaxi Sheng was listed on the eve of the announcement of view, difficult to draw conclusions Huaxi Sheng was to maintain growth. November 4, Huaxi Sheng was issued IPO announcement, the financial data is updated. In the first three quarters of 2019, total revenue was 1.29 billion yuan Huaxi Sheng, an increase of 49% owned by a non-parent deduction net profit of 410 million yuan, an increase of 37.8%.
It is worth noting that three quarters of its 2019 revenue has exceeded the 2018 full-year normalized net profit and non-female snap the year 2018 was essentially flat. Obviously, the high growth in the short term Huaxi Sheng was already a virtual certainty.
However, the collective industry optimistic about convincing perhaps stronger. Branch board of the major concerns of most securities, had also issued a research report expressed their views on the future growth Huaxi Sheng matter.
Shun Securities research report pointed out that Huaxi Sheng was hyaluronic acid as the main line extending upstream and downstream distribution, technology + cost + huge potential for growth under integration industries. China and Thailand Securities believes Huaxi Sheng was the whole industry chain advantages highlighted, roots hyaluronic acid raw product lines and terminal medical, functional skin care products continue to force the field; functional skin care products business, products + marketing to enhance brand effect, is expected to meet to explosive growth. Recently, Shen Wanhong source, China Merchants Securities, CICC you are given "overweight", "highly recommended -A", "outperformed the industry" rating.
Different is, in 2020, an increase of Huaxi Sheng matter will show stronger structural, ie the outstanding growth of functional skin care products business, driven by raw material products, increase medical terminal two businesses to form a new triangular structure growth relationship.
From the business growth cycle and logical point of view, in a complex and changing environment, companies want to go farther, we must keep the sense of smell of opportunities, as well as vigilance of the crisis, while companies in an industry to become Jiaojiao who need leaders and corporate management team of wise and courageous, BAT were able to come today is the truth.
Looking back at Huaxi Sheng Branch was listed on the selection board, it should be said, Huaxi Sheng was the opportunity to grasp the good, and to visit the capital market acceptance test, Huaxi Sheng was also inspired the desire for business growth and importance, which has become a matter Huaxi Sheng of a needle "chicken." Next year, in the structural growth of normal development, Huaxi Sheng matter could become a Kechuang board and many investors continue "doping."
Wen / Liu Kuang public number, ID: liukuang110
