FLERGA 2023 annual report preview: The moat and 2024 outlook of the 'No.1 medical aesthetic mask stock'

Charlie Munger once said: "Go fishing where the fish are." Looking at the sectors that have consistently produced long-term bull stocks, the consumer industry is undoubtedly a big winner. Among them, the beauty industry is one of the best sub-sectors in the consumer industry.

On April 26, the "first medical aesthetic mask stock" in the A-share market—Fuerjia $Fuerjia(301371.CN)—will release its 2023 financial report. As usual, we will review this quarter's performance and provide some insights into key businesses such as the White Mask, Black Mask, revenue, and R&D, aiming to understand the competitive landscape and future trends behind the performance changes.

First, the conclusion: In the trillion-scale 赛道 of long-term growth, Fuerjia has transitioned from being a leader in medical 敷料 to walking on two legs—medical devices and cosmetics. With the 2023 annual report 即将发布， its 确定性 investment opportunities are worth 挖掘。

Key Business Operational Data Tracking and Forecast: Revenue Expected to Exceed 1.95 Billion Yuan

Fuerjia's product lines are mainly divided into two categories: medical devices and cosmetics. The medical device category includes 医用透明质酸钠修复贴 (including the popular White Mask and Black Mask)，医用透明质酸钠修复液， and 医用重组 III 型人源化胶原蛋白贴. The cosmetics category covers 面膜 (including 涂抹式面膜), toners, serums, lotions，冻干粉， gels, sprays, and other products.

Over the years, Fuerjia's performance has continued to grow, with revenue increasing from 373 million yuan in 2018 to 1.769 billion yuan in 2022, while net profit attributable to the parent company rose from 200 million yuan to 847 million yuan. As of the first three quarters of 2023, the company achieved revenue of 1.339 billion yuan and a net profit attributable to the parent company of 536 million yuan.

White Mask + Black Mask: The White Mask and Black Mask are Fuerjia's star medical device products and the main sources of income in the medical device category. In 2022, the White Mask and Black Mask accounted for 72.07% and 25.46% of the medical device category's revenue, respectively. Benefiting from the rapid growth of China's medical device market and the company's increasing market share, these two products maintained stable growth momentum in 2023, with medical device category revenue expected to exceed 900 million yuan.

Cosmetics Category:面膜 (including 涂抹式面膜) is Fuerjia's primary source of income, accounting for over 80% of revenue from 2020 to 2022. Due to 持续旺盛 demand for 贴、膜类 products in the cosmetics market and Fuerjia's enhanced marketing and promotion of 面膜 products, this category's revenue growth 势头良好. Therefore, Fuerjia's cosmetics category revenue is also expected to maintain stable growth in 2023，预估 exceeding 1 billion yuan.

Based on the above calculations, Fuerjia's 2023 revenue is expected to reach 1.95 to 2 billion yuan. With a net profit margin of 40.03% in the first three quarters, the full-year net profit is estimated to be between 760 and 800 million yuan.

Minsheng Securities' research report also predicts that Fuerjia's 2023 revenue will be 1.963 billion yuan, with a net profit attributable to the parent company of 794 million yuan.首次覆盖， the report gives a "推荐" rating. Although 同比 data may not be 理想，环比来看， the company's profitability is steadily improving, warranting cautious optimism.

Industry Endogenous Drivers and Future Trends

To understand Fuerjia's endogenous drivers, we must first identify the core drivers of the industry.

From the consumer's perspective, in today's medical aesthetic + skincare market, product quality and user experience have surpassed brand awareness and marketing 传播度 as more attractive factors. More people are shifting from paying for fun to paying for quality. In the future，轻医美 market consumer demand and 功能性护肤需求 will become the core drivers of industry growth.

This aligns with Fuerjia. In 2014, Fuerjia, with its professional pharmaceutical background, completed innovative R&D based on 透明质酸钠成分， becoming one of the first companies in China to 获准上市透明质酸钠成分的 II 类医用敷料贴类产品. This also gave Fuerjia the "R&D"标签， adding core 附加值 and higher 溢价 to its products.

面膜：面膜 is mainly divided into 普通面膜 and 功效性面膜。功效性面膜 targets sensitive skin and other skin types, achieving noticeable results within a 周期. Consumers now 优先选择功效性面膜 due to their higher 性价比 (not much more expensive than 普通面膜 but with better 功效). Some consumers who previously purchased L'Oréal面膜 have switched to domestic brands like Fuerjia's 功效性面膜。

Most importantly, any woman who has used 面膜 knows Fuerjia. As one of the earliest brands to propose the "medical aesthetic 面膜" concept, Fuerjia initially collaborated with medical institutions, pharmacies, and distributors, sacrificing 部分利润 and 持续 investing in marketing. These efforts were essentially market education. Fuerjia's brand image has achieved 原始积累 in users' minds that no other brand can match. Fuerjia pioneered 医用敷料贴， capturing the 空白 market in medical aesthetics.

After regulations were clarified, other brands could not 跟进医美面膜消费者的认知. Fuerjia's position in consumers' minds began to 巩固， forming a brand 护城河。

According to Frost & Sullivan estimates，贴式面膜 sales are expected to exceed 1 billion pieces by 2025, with a 2019-2025 CAGR of 22%. In terms of market share, Fuerjia ranks first in the "械字号"敷贴 product market and second in the 功能性护肤品贴膜类 product market. The 医用敷料 market it leads is also expected to reach new highs in the coming years.

Channel and R&D 布局 Enter Strategic Harvest Period

Fuerjia has extended its 布局 from product structure to channels and marketing 一体化。

Leveraging the brand 力推动 of the Black Mask and White Mask as 大单品， Fuerjia has launched products with 虾青素，传明酸，积雪草，烟酰胺，金盏花提取物，依克多因等 as main ingredients, continuously enriching its product matrix and achieving sustained 放量。

Channels: Sales channels are primarily offline, supplemented by online, covering the core consumers of 医用敷料类 products in offline 院线渠道. Fuerjia's offline channels were established early and deeply 布局， with 终端历练 clients who have high 认可度和粘性， enabling cost control.

Marketing: Fuerjia has implemented 精准营销与推广布局 across multiple dimensions: from traditional media, new media, mobile 端，公众号 to 小程序， forming a 多层次推广矩阵 that achieves brand 推广 from 广度 to 精度. Online, Fuerjia has established official flagship stores on 天猫，小红书，京东，抖音，快手，拼多多等 B2C platforms, achieving 全覆盖 of online sales platforms with 显著新客转化效果. With the 成熟 of 直播带货， Fuerjia has established a new marketing center in Shanghai to expand its 布局 nationwide and 辐射 international markets.

Sales Expense Ratio:稳健的营销和渠道 have kept Fuerjia's sales expense ratio 远低于可比 companies. In 2022, Fuerjia's sales expense ratio was 22.06%，远低于贝泰妮's 40.84% and 华熙生物's 47.95%，最高仅为可比均值的 50%. Compared to other 面膜 brands that require significant 广告宣传费用 across different 电商平台及媒体渠道， Fuerjia's 经销模式 results in 相对较小的市场推广获客成本. The 2023 sales expense ratio is expected to rise slightly to 26.5%.科普一下， a sales expense ratio below the industry average indicates that Fuerjia effectively controls 销售费用支出， excelling in 营销策略和执行能力。

In terms of R&D capability, spanning 轻医美 and 消费两个赛道， Fuerjia's 底层逻辑 for maintaining competitiveness is its 强大的研发能力。

(1) In 2014, Fuerjia's predecessor，华信药业， completed the R&D of "医用透明质酸钠修复贴，" becoming one of the earliest companies to 研发和推出医用敷料. Since then, Fuerjia has never stopped accumulating R&D, later acquiring 敷特佳 and 北星药业。

(2) In May 2023, Fuerjia invested 1 billion yuan to establish Fuerjia·北方美谷， which includes 8 fully automated production lines and a 超大型智能化立体库房， becoming Fuerjia's 研发生产的 "超级堡垒." In 2023, it hosted 央视新闻主持人撒贝宁 and 王嘉宁 for 实地探访。

(3) In the first three quarters of 2023, R&D 投入 totaled 15.6157 million yuan, a 40.26% year-on-year increase. Full-year 2023 R&D 投入 is 预计 to reach 21 million yuan. Additionally, Fuerjia has deepened collaborations with 各大院校与科研机构， including 江南大学，四川大学，哈尔滨工业大学，东北林业大学，华南理工大学等. Fuerjia is also collaborating with 中国科学院，维其科技，菲尔生物等权威机构 on R&D projects.

The new factory construction and Shanghai R&D center reflect Fuerjia's 高度重视 of product quality and safety, ensuring high standards in 安全性，有效性， and 技术先进性 through 源头把控 and 科研实力。

2024 Outlook: The Long-Term "Appearance Economy 赛道"

According to 艾媒咨询 data，轻医美 user 规模 grew continuously from 2016 to 2020, reaching 15.2 million in 2020. In 2023, China's 轻医美 market user 规模 is 预计 to reach 23.54 million, a 55% increase from 2020. Consumers undergoing 光电/注射类项目 typically need 医用敷料 for 早晚修复， and the rapid growth of 轻医美 users has significantly 拉动贴式敷料需求人群。贴式敷料 sales are expected to exceed 1 billion pieces by 2025.

Looking at the stock price, although Fuerjia 破发，早期的高溢价 was due to 盲目追捧，加上这两年资本市场整体低迷， the recent 股价走强，站上所有均线， indicates 内生驱动力开始发挥作用 and a 价值回归 trend. With many 布局 this year, the overall outlook is positive.

Notably, according to 张坤's annual report, his 重仓股新增了女性消费赛道. In the 隐形重仓股名单 of 易方达蓝筹精选基金， this 顶流基金经理首次覆盖女性消费赛道—including 巨子生物 (No. 15)，新秀丽 (No. 16)，欧舒丹 (No. 18), Fuerjia (No. 30)，乖宝宠物 (No. 34). In his QDII fund, he also included 普拉达。

Fuerjia's inclusion makes 医美类 companies in the 女性赛道 one of the few areas comparable to 白酒 profitability，侧面证明 Fuerjia's 硬实力 in the 面膜赛道。

产品力 has always been Fuerjia's 强项， with the stable growth of the medical device industry as its 基本盘. Now，化妆品业务 provides 新增量. The seeds have been planted, and we await a "戴维斯双击" signal.

$Fuerjia(301371.SZ)