Haitong securities released a research report saying that domestic brands have built single products around the concepts of reorganizing collagen, polypeptide, etc. & serialization has been carried out smoothly, which has enabled the ingredient to establish users' minds in high-frequency skin care scenes, and can take the lead in breaking the situation by virtue of differentiation advantages such as Fumei and Marumei. Since 2023, foreign investors have entered the market to put in high-quality content to further increase the penetration rate of ingredients. In addition, collagen injection both filling, water, regeneration effect, with the leading industry standardization, industrial capital operation accelerated pipeline landing, is expected to broaden the upstream medical injection materials manufacturers growth space.

enterprises with active layout and reorganization of collagen field and leading research and development will enjoy growth dividends. relevant targets: giant biology (02367), jinbo biology (832982.BJ), marumei shares (603983.SH), frida (600223.SH), beitani (300957.SZ), huaxi biology (688363.SH), fuerjia (301371.SZ), etc.

The main points of view of Haitong Securities are as follows:

in recent years, the market size of recombinant collagen has maintained a high growth rate. according to Jost Sullivan's prediction, the market size of recombinant collagen in China will be 27.1 billion yuan in 2023, and will increase to 108.3 billion yuan in 2027, with a CAGR of 41.4. According to the breakdown of application scenarios, the penetration rate of recombinant collagen in functional skin care products will increase from 20.3 in 2023 to 30.5 in 2027, the penetration rate in the field of light medicine and beauty increased from 5.6 in 23 years to 9.7 in 27 years, and the market size CAGR was 55.0/34.5.

Technology iteration lays multiple potentials

① History: Medical beauty collagen filler was first approved for marketing in the United States in 1981, and its cost performance and safety issues did not lead to its prosperity. In 2000, Professor Fan Daidi's team came out with recombinant collagen produced by high-density fermentation of genetic engineering, and the industry gradually started the industrialization process. Domestic collagen fillers represented by Shuangmei have developed rapidly since around 2010, changing the previous situation of domestic imports.

② Latest technological breakthrough: Since this year, the research and development in the field of recombinant collagen has made rapid progress. Jinbo Biology found that the 164.88 ° triple helix structure of type A recombinant type III humanized collagen can be further self-crosslinked into a higher collagen fiber network structure, thus realizing cell remodeling and tissue remodeling. Chuangjian Medical has successfully developed type III recombinant human collagen with amino acid sequence completely consistent with human natural collagen and natural triple helix structure to solve the problem of insufficient mechanical support of recombinant collagen; giant Bio took the lead in using 3D full-thickness skin model-two-photon microscopic imaging technology to verify the transdermal absorption of recombinant collagen and promote the production of human collagen. In March, CHO cells achieved a technological breakthrough in the efficient expression of recombinant human collagen. Jiangsu Wuzhong and Nanjing Dongwan took the lead in realizing natural full-length and triple-helix structure using CHO cell expression system.

skin care efficacy upgrade & medical beauty expansion, broad terminal application

① Functional skin care products: Recombinant collagen has become the fourth largest anti-aging component after Shengsheng peptide, A alcohol and Bose factor. In addition to domestic products with collagen as the core component, many brands use recombinant collagen to realize product iteration. L 'Oré al Paris Cooperation Jinbo Biological Upgrade Small Honey Pot 2.0; Perrier Cooperation Chuangjian Medical Upgrade Source Cream 2.0, Upgrade Formula Added XVII Recombinant Collagen; Shiseido's Oprah's New Electric Eye Essence Uses Recombinant Type III Human Collagen (Exclusive Customization); Dr. Aier Flash Water Filling Milk 2.0 uses small molecular weight type III recombinant collagen + adenosine, and cooperates with brown algae fermentation essence to cut into microecological anti-aging track. As of March 31, TOP5 on the list of new products of Tmall Cream is mostly related to collagen components, such as Estee Lauder Night Collagen Night Cream, L 'Oré al Small Honey Pot 2.0, Fumei Focus Cream and Cream Film Cream.

② medical and beauty injection materials: as of March 2024, only 8 collagen injection products have been listed in mainland China, and class III machinery is still relatively scarce. among them, after jinbo biology was approved as the world's first class III human collagen product in 2021, the pace of commercialization continued to accelerate, and weiyi beauty sold more than 570000 bottles in 23 years, and the introduction of III + XVII collagen "stability + repair + remodeling + double protection" joint products; In March, the cooperative Xiuli can introduce recombinant type III collagen solution "platinum research" collagen needle.

Haitong Securities believes that with the technological breakthrough of gene recombination preparation and the acceleration of production capacity construction layout, collagen is expected to create a differentiated advantage in multiple scenarios. Recently Jinbo Bio, Giant Bio, etc. released annual report performance bright, growth and profitability excellent verification of the segment of the track business climate, leading to enjoy dividends.

Risk Warning: Increased competition in the industry, lower-than-expected launch of new products, rapid growth in customer acquisition costs, etc.