Novogene(SH:688315) Great Wall Securities·2024-11-04 07:27Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [4][15]. Core Views - The company's profitability is showing signs of improvement, with a steady global localization strategy being implemented. The revenue for the first three quarters of 2024 reached 1.519 billion yuan, a year-on-year increase of 6.3%, while the net profit attributable to shareholders was 134 million yuan, up 7.33% year-on-year [1][4]. - The introduction of the Falcon III system in Germany marks a significant step in the company's global localization efforts, enhancing operational efficiency and service quality in Europe [3][4]. - The company is expected to return to a fast growth trajectory as it completes updates to its sequencing platforms and gradually increases laboratory capacity [4]. Financial Summary - Revenue Growth: The company reported a revenue of 2,002 million yuan in 2023, with projections of 2,174 million yuan for 2024, reflecting a year-on-year growth rate of 8.6% [1][9]. - Net Profit: The net profit attributable to shareholders is projected to grow from 178 million yuan in 2023 to 195 million yuan in 2024, representing a growth rate of 9.3% [1][9]. - Profitability Ratios: The gross margin for the first three quarters of 2024 was 42.59%, a slight decrease of 0.37 percentage points year-on-year, while the net profit margin improved to 9.20%, an increase of 0.05 percentage points [2][4]. - Earnings Per Share (EPS): The latest diluted EPS is projected to be 0.47 yuan in 2024, increasing to 0.62 yuan by 2026 [1][9]. Operational Highlights - The company has successfully integrated the Falcon III system, which enhances its service capabilities and operational efficiency, with a production capacity increase of over 25% compared to the previous model [3][4]. - The company continues to focus on enhancing its sequencing platform service capabilities while adhering to its global localization strategy [4].