MGI(688114) 中国银河·2024-08-26 12:37Investment Rating - The report maintains a "Recommend" rating for the company (华大智造, stock code: 688114) [1] Core Views - The company's performance in H1 2024 was under pressure, with revenue of 1.209 billion yuan (-16.23% YoY), net profit attributable to shareholders of -298 million yuan, and operating cash flow of -578 million yuan [1] - In Q2 2024, the company's revenue was 678 million yuan (-17.70% YoY), with net profit attributable to shareholders of -97 million yuan and operating cash flow of -359 million yuan [1] - The company's losses narrowed in Q2 2024, attributed to improved efficiency measures [1] - Core business segments showed sequential improvement, with sequencing instrument revenue in H1 2024 reaching 1.005 billion yuan (-8.40% YoY), and a 23.61% QoQ growth in Q2 [1] - The company's R&D investment in H1 2024 was 389 million yuan, accounting for 32.20% of revenue, with a record high of 454 new sequencing instrument installations [1] - The company's global presence expanded, covering 71 countries/regions, with key KOL partnerships increasing [1] - The company announced a restricted stock incentive plan on June 11, 2024, aiming to grant 6.555 million shares (1.58% of total shares) to 325 key personnel [1] Business Performance - Sequencing instrument business: Revenue of 1.005 billion yuan in H1 2024 (-8.40% YoY), with Q2 growth of 23.61% [1] - Laboratory automation business: Revenue of 97 million yuan in H1 2024 (-16.70% YoY), with Q2 growth of 46.47% [1] - New business: Revenue of 88 million yuan in H1 2024 (-60.09% YoY), with Q2 growth of 21.22% [1] - Regional performance: - Mainland China & Hong Kong/Macau/Taiwan: Revenue of 680 million yuan in H1 2024 (-2.20% YoY), with Q2 growth of 32.63% [1] - Overseas regions: Revenue of 325 million yuan in H1 2024 (-19.14% YoY), with growth in Asia-Pacific, Europe/Africa, and Americas regions [1] R&D and Innovation - The company's DNBSEQ-T7 related revenue grew 14.96% YoY in H1 2024, with Q2 growth of 29.02% [1] - DNBSEQ-G99 related revenue grew 82.94% YoY in H1 2024, with Q2 growth of 45.55% [1] - Laboratory automation products saw 212 new installations in H1 2024, with a cumulative total exceeding 4,200 units [1] - Single-cell related revenue in new business grew 220.00% QoQ in Q2 2024 [1] Future Outlook - The company's core business is in a market expansion phase, with significant sales and R&D expenses expected [2] - Revenue growth triggers for 2024 and 2025 are set at 15% and 32%, respectively, with targets of 20% and 44% [2] - The company's domestic scientific research customer transactions increased by over 70% YoY, and hospital coverage increased by 16.09% [2] - The company's U.S. factory began operations, producing the first batch of G99 sequencing instruments [2] - The company signed agreements with related parties to expand its global market presence in spatial transcriptomics and nanopore sequencing [2] Financial Projections - Revenue for 2024E is projected at 3.533 billion yuan, with a growth rate of 21.36% [3] - Net profit attributable to shareholders for 2024E is projected at -244.33 million yuan [3] - Revenue for 2025E is projected at 4.245 billion yuan, with a growth rate of 20.16% [3] - Net profit attributable to shareholders for 2025E is projected at -21.60 million yuan [3] - Revenue for 2026E is projected at 5.078 billion yuan, with a growth rate of 19.61% [3] - Net profit attributable to shareholders for 2026E is projected at 242.86 million yuan [3]