MGI(SH:688114) GOLDEN SUN SECURITIES·2024-11-08 12:50Investment Rating - The report upgrades the investment rating to "Buy" from "Hold" [3] Core Views - The Q3 revenue decline is attributed to multiple factors including macroeconomic conditions and intensified competition, while profit performance is affected by fluctuations in gross margin and increased expense ratios [1][2] - Steady growth in sequencing instrument installations is noted, with over 670 units installed in the first three quarters of 2024, representing a 4% year-on-year increase [1] - The company is accelerating its overseas market expansion, with expectations for a recovery in 2025 as local operations continue to develop [1][2] Financial Performance Summary - For Q1-Q3 2024, the company achieved revenue of 1.869 billion yuan, a year-on-year decline of 15.19%, and a net profit attributable to shareholders of -463 million yuan, down 134.28% [1] - Q3 2024 revenue was 660 million yuan, a decrease of 13.22% year-on-year, with a net profit of -165 million yuan, down 65.54% [1] - The gross margin for Q3 2024 was 58.38%, a decrease of 4.66 percentage points year-on-year, while the sales expense ratio increased by 6.92 percentage points to 33.99% [1] Revenue and Profit Forecast - Revenue projections for 2024-2026 are 2.611 billion, 2.995 billion, and 3.510 billion yuan, with year-on-year growth rates of -10.3%, 14.7%, and 15.4% respectively [2] - Net profit forecasts for the same period are -488 million, -259 million, and 61 million yuan, with year-on-year growth rates of 19.7%, 46.8%, and 123.6% respectively [2]