MGI(SH:688114) Soochow Securities·2025-05-06 10:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit from domestic substitution and AI sequencing, leading to increased demand [1] - The company's revenue for 2024 is projected to be 3.013 billion yuan, with a year-on-year growth of 3.48%, while the net profit attributable to the parent company is expected to be -600.83 million yuan, indicating a reduction in losses [1] - The company has a strong competitive position as the only domestic and one of the few global full-product sequencing instrument manufacturers [1] Financial Performance Summary - Total revenue for 2023 is 2.911 billion yuan, with a year-on-year decline of 31.19% [1] - For 2024, the revenue is expected to increase to 3.013 billion yuan, with a projected growth of 24.66% in 2025, reaching 3.756 billion yuan [1] - The net profit for 2024 is forecasted at -600.83 million yuan, improving to -170.21 million yuan in 2025, and turning positive in 2026 with a net profit of 100.09 million yuan [1] - The earnings per share (EPS) is expected to improve from -1.46 yuan in 2023 to -1.44 yuan in 2024, and then to -0.41 yuan in 2025 [1] Business Segment Performance - The gene sequencing instrument business is expected to maintain high growth, with revenue of 2.348 billion yuan in 2024, a year-on-year increase of 2.5% [1] - Domestic revenue for the gene sequencing instrument business is projected to be 1.607 billion yuan, reflecting an increase of 11.4%, while overseas revenue is expected to be 741 million yuan, a decrease of 12.7% [1] - The company has established nine global R&D centers and seven production bases, indicating a strong commitment to international expansion [1] Market Position and Strategy - The company has increased its market share in domestic sales of sequencing instruments to 63.8% in 2024, with a global market share of 28.2% [1] - The introduction of AI technology in products, such as the AIO intelligent control software, is expected to enhance sequencing efficiency and expand application scenarios [1] - The company is actively pursuing opportunities for domestic substitution, particularly as its main competitor, Illumina, faces limitations in the domestic market [1]