Novogene(SH:688315) INDUSTRIAL SECURITIES·2024-05-13 02:02Investment Rating - The report maintains a "Buy" rating for the company [3] Core Insights - In 2023, the company achieved operating revenue of 2.002 billion yuan, a year-on-year increase of 3.97%, and a net profit attributable to shareholders of 178 million yuan, a year-on-year increase of 0.47%. However, the net profit after deducting non-recurring gains and losses decreased by 8.92% to 140 million yuan. The gross margin was 42.73%, down 1.55 percentage points year-on-year [1][14] - In Q1 2024, the company reported operating revenue of 468 million yuan, a year-on-year increase of 6.32%, and a net profit attributable to shareholders of 27 million yuan, a year-on-year increase of 21.40%. The gross margin for this quarter was 40.54%, down 0.66 percentage points year-on-year [1][14] - The company is focusing on multi-omics technology and expanding clinical sequencing services, with steady growth in sequencing platform services. The company has increased its overseas investments, establishing local laboratories in various countries, enhancing its global layout [1][15][17] Financial Summary - The company expects to achieve operating revenues of 2.327 billion, 2.719 billion, and 3.205 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 16.2%, 16.8%, and 17.9%. The net profit attributable to shareholders is projected to be 208 million, 253 million, and 296 million yuan for the same years, with growth rates of 16.7%, 21.7%, and 16.9% [1][6] - The earnings per share (EPS) are expected to be 0.50 yuan, 0.61 yuan, and 0.71 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 30.4, 25.0, and 21.4 [1][6] Market and Operational Strategy - The company has made significant progress in its localization strategy, deploying local laboratories in the US, UK, Singapore, Germany, and Japan, which enhances service efficiency and stability globally. It serves over 7,300 clients, including top academic research institutions and pharmaceutical companies [1][17] - The company continues to invest in research and development, with R&D expenses of 124 million yuan in 2023, representing 6.20% of revenue. It has developed a comprehensive range of multi-omics products and is actively expanding clinical applications of gene sequencing technology [1][18]