With the successful listing of Amic, plus the previously listed Huaxi Biotech and Haohai Biotech, the A-share market has gathered the three giants of hyaluronic acid, with a total market value of more than 120 billion. The logic of stock market speculation It is a true portrayal of life, and all this is the result of the beauties!
I can’t help but think of the jokes in the previous circle of friends:
The consumer market value from high to low is: girls > children > young women > old people > dogs > men.
Sure enough, women make the best money! Perhaps only Maotai is the last remaining dignity of men!
Men’s Moutai, women’s hyaluronic acid!
Moutai has always been known for its high gross profit margin, and this hyaluronic acid is even worse than Moutai. The average gross profit margin of currently popular hyaluronic acid products is higher than 90%. No wonder netizens joked: "Every shot of hyaluronic acid smells like Moutai." The production price of a product costing 20 yuan is as high as hundreds or even thousands of yuan, and the highest price is 80 times the cost price. The huge profits are visible to the naked eye.
The huge profits not only made the three giants a lot of money, but also made the actual controllers appear on the richest list. Zhao Yan, chairman of Bloomage Biotechnology, has a net worth of 27 billion yuan, and Jian Jun, chairman of Aimeike, has a net worth of over 27 billion yuan. 20 billion yuan, and the couple Jiang Wei and You Jie of Haohai Biotech have a net worth of over 8 billion yuan. Coincidentally, women occupy three of the four seats. It seems that women understand women better.
According to institutional analysis, China’s medical aesthetics industry has just started. Compared with the United States and South Korea, China’s national per capita consumption of medical aesthetics still has room for at least four times more growth. The market is currently in severe short supply, and in the future, medical aesthetics The institutional track is expected to become the leader in the ultra-large industry.
The rise of the appearance economy
Where there is demand, there will be supply. The demand for modern medical beauty comes from the pursuit of "appearance spirit" brought about by the improvement of economic level. Things linked to appearance will be sought after. Especially in recent years, due to the influence of factors such as the "Internet celebrity effect" and the social and cultural rendering of many articles and videos that flatter women, people's ability and willingness to pay for their appearance have continued to increase, and the demand for the medical beauty industry has developed rapidly.
According to iResearch data:
From 2012 to 2019, China’s medical beauty market maintained rapid growth, with the compound annual growth rate of the medical beauty market reaching 28.97%. In 2019, China’s medical beauty market The U.S. market size has reached 176.9 billion yuan. China is expected to surpass the United States in 2021 and become the largest market for medical aesthetics. The market size will reach 311.5 billion yuan in 2023, and the long-term scale is expected to reach 2 trillion yuan.
The reason for making such a judgment is that the young group and the increase in the penetration rate of medical beauty are the key driving forces.
With the change of consumption concepts and the improvement of consumption power, the proportion of consumers under the age of 25 has increased rapidly. According to SoYoung data:
my country’s medical beauty consumers in 2019 The average age is 24.45 years old, and consumers born in the 1990s account for more than 60%, becoming the absolute main consumer. Judging from the consumption data in the past two years, the trend of medical beauty becoming the daily lifestyle of the post-00s generation has emerged. Compared with the post-90s generation, they are more open to the concept of medical beauty. In addition, science and technology are becoming more and more developed, and social attitudes As China becomes more and more open, the demand for medical beauty is growing more significantly.
According to SoYoung’s medical beauty industry white paper:
Post-00s consumption accounts for more than 15%, and the post-00s generation has a stronger momentum to start medical beauty consumption than the post-90s generation. The agency predicts that there will be 13.672 million medical beauty users in China in 2019, and the number of medical beauty users will reach 25.483 million in 2023.
There is still a lot of room for improvement in the penetration rate of medical aesthetics projects in China. China's medical aesthetics industry started late. In 2014, the penetration rate of medical aesthetics in mainland China was only 2.4%. During the same period, the penetration rate of medical aesthetics in Hong Kong was 3.8%, in Japan it was 10.3%, and in the United States it was 3.8%. 15.7%, and the penetration rate of Korean medical beauty projects is as high as 18.2%. In the past five years, the penetration rate of medical aesthetics projects in China has increased significantly, from 2.4% in 2014 to 3.6% in 2019.
However, there are still significant differences with the United States, Japan, South Korea and other regions. In the future, there is broad room for growth in the penetration rate of medical aesthetics projects in China.
However, it is worth reminding that the demander’s pursuit of medical beauty (perfect appearance) is mainly self-appreciation and recognition. However, there is a contradiction between "women's desire to pursue beauty" and "a huge shortage of legal medical beauty institutions." Domestic "black medical beauty" is prevalent, and the "three noes" problems such as unlicensed doctors, unlicensed clinics, and unlicensed products are prominent. According to Ai According to statistics from Rui Consulting, there are currently more than 80,000 illegal medical beauty institutions operating in China, and legal medical beauty institutions only account for 14% of the total number of industry institutions. Therefore, it is good to pursue beauty, but you must also choose a formal platform.
It takes only a day to build a mountain.
The industrial chain of the medical beauty industry mainly includes three core links: upstream suppliers (hyaluronic acid, botulinum toxin, etc.), midstream hospitals, etc. , a downstream customer acquisition platform.
Due to the triple barriers of qualification, technology and capital, upstream suppliers are difficult for new players to overcome, and the market concentration is high.
According to the Imic prospectus, there are currently only 17 companies that have obtained registration certificates in China. Manufacturing companies in the field of biomedical materials need to go through strict review in several aspects from product development to launch, including drug production. The overall process of license, GMP certification and drug approval number takes 2-5 years.
Technically, R&D is characterized by high technical difficulty, long R&D cycle, complex process routes, and strict environmental requirements. The key technologies and processes of enterprises in the industry have been protected by patents and have high technical barriers. .
Since pharmaceutical companies need to go through multiple experiments to achieve large-scale production, output takes a long time, and the initial cost investment in equipment, personnel and marketing is relatively large, forming a financial barrier.
At present, the domestic market is still dominated by imported products. In terms of sales, South Korea's LG, the United States' Allergan, South Korea's Humedix and Sweden's Q-Med still dominate. However, the domestic growth rate is relatively fast. At present, the sales volume of hyaluronic acid products of the three giants (Amic/Huaxi Biotech/Haohai Biotech) accounts for more than 40%, and the sales amount accounts for more than 20%.
Gross profit margin is extremely high
The high-end monopoly has resulted in extremely high gross profit margin in the industry. Judging from the prospectus, the main products of the Amic series cost no more than 33 yuan, of which HiTi is 25 yuan/box, Aifulai is 31 yuan/box, and Baonida is 32.34 yuan/box. The ex-factory prices range from 352 yuan to 310 yuan to 2547 yuan respectively, with the highest doubling up to 80 times. On the e-commerce platform, the price of an injection of domestic hyaluronic acid is between 3,800-5,000 yuan, and the price of imported hyaluronic acid is as high as 6,000-13,000 yuan, more than 300 times higher than the cost price. Its huge profit model is really impressive!
Judging from the prospectus, Amic’s sales gross profit margin is as high as 92.63%, Bloomage Biotech’s sales gross profit margin is 79.66%, and Haohai Biotech’s sales gross profit margin is 75.70%.
The reason for this situation is that the business focus is different. Bloomage Biotech's core business is raw material business, which accounted for more than 50% of its revenue during the reporting period; Haohai Biotech's main product revenue is concentrated in ophthalmology and orthopedic products; Amic's main business and resources are concentrated in the production and sales of hyaluronic acid series products.
Although Amic has the highest gross profit margin, its product structure is obviously single and it is easily affected by market fluctuations. The other two are developing in a diversified manner. Bloomage Biotech is expanding its application around hyaluronic acid from raw materials, medical terminals, and skin care terminals, while Haohai Biotech is looking for new profit growth points around ophthalmology, medical aesthetics, orthopedics, and surgery. , don't put all your eggs in the same basket.
Hyaluronic acid is a good business, but capital is driven by profit. We do not rule out the entry of new players in the future. Lushang Development has successively acquired Reda Group and Focus Biotech to enter the hyaluronic acid industry.
Another study found that institutional pricing is not generally "profiteering." As an entry-level project for medical aesthetics, and with fierce market competition, hyaluronic acid is mostly positioned as a drainage project by medical aesthetics institutions, which also means that it is difficult for hyaluronic acid to become a long-term "cash cow" in terminal institutions.