MGI(SH:688114) INDUSTRIAL SECURITIES·2024-02-26 16:00Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for future performance [4]. Core Insights - The company has experienced rapid growth in its gene sequencing instrument business, with a year-on-year sales revenue increase of approximately 30% in 2023. The company is actively expanding its overseas market, particularly in Europe and the United States, where its full line of gene sequencing products began sales in early 2023, contributing to significant revenue growth in the U.S. [2]. - The company anticipates a net loss attributable to shareholders of between -6.87 billion to -5.78 billion yuan for 2023, a decline of 128.52% to 133.90% year-on-year. The fourth quarter of 2023 is expected to see a net loss of -4.89 billion to -3.80 billion yuan [3]. - The report highlights that the company's profit is under pressure due to several factors, including a high base from non-recurring gains in 2022, a decline in revenue from laboratory automation products, increased R&D investments, and higher sales expenses due to international expansion efforts [3]. Financial Summary - The company’s projected financials for 2023-2025 include: - Revenue: 29.21 billion yuan in 2023, 36.94 billion yuan in 2024, and 46.21 billion yuan in 2025, with corresponding year-on-year growth rates of -30.9%, 26.5%, and 25.1% respectively [3]. - Net profit: Expected to be -6.18 billion yuan in 2023, -1.64 billion yuan in 2024, and a return to profitability with a net profit of 1.37 billion yuan in 2025 [3]. - The projected price-to-sales (PS) ratios for 2024 and 2025 are 10.45X and 8.26X, respectively, indicating a potential for valuation improvement as the company returns to profitability [3].