BGI Genomics(SZ:300676) Southwest Securities·2024-02-04 16:00Investment Rating - The report maintains a "Hold" rating for BGI Genomics (300676) with a current price of 36.66 CNY [1]. Core Insights - The company expects its 2023 revenue to be approximately 4.2 billion to 4.5 billion CNY, representing a decline of 36.14% to 40.39% year-on-year. The net profit attributable to shareholders is projected to be between 80 million and 110 million CNY, a decrease of 86.30% to 90.04% [3]. - Excluding the impact of COVID-19, the company's regular business is expected to grow at around 20% in 2023, with notable growth in cancer prevention services [3]. - The company is focusing on five major business segments: reproductive health services, cancer prevention services, pathogen infection services, multi-omics big data and synthesis business, and precision medical testing solutions [3]. - BGI Genomics is expanding its international business through partnerships and joint ventures, including a clinical laboratory in Saudi Arabia and collaborations with medical institutions in several countries [3]. Summary by Relevant Sections Revenue and Profit Forecast - The expected revenue for 2023 is 4.34 billion CNY, with a growth rate of -38.4%. For 2024 and 2025, the revenue is projected to be 4.56 billion CNY (5% growth) and 4.85 billion CNY (6.3% growth), respectively [13][17]. - The net profit for 2023 is estimated at 100.93 million CNY, with a significant decline of 87.4%. The profit is expected to recover to 142.17 million CNY in 2024 and 175.40 million CNY in 2025 [13][17]. Business Segments Performance - The reproductive health segment is expected to see a revenue increase of 5% annually from 2023 to 2025, while the cancer prevention segment is projected to grow by 11.5% in 2023 and stabilize at 12% in the following years [11][10]. - The precision medical testing solutions segment is anticipated to experience a significant decline of 32% in 2023, with a recovery to 2% growth in 2024 and 5% in 2025 [11][10]. Market Position and Strategy - BGI Genomics is enhancing its product offerings and market presence through continuous R&D investment, resulting in new product approvals and upgrades in various segments [3]. - The company has achieved several market access qualifications for its products in international markets, which will support its global expansion strategy [14].