MGI(SH:688114) Haitong Securities·2024-06-12 11:01Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company reported a revenue of 2.911 billion yuan in 2023, a year-on-year decrease of 31.19%, and a net profit attributable to shareholders of -607 million yuan, a decline of 129.98% [6][10] - In Q1 2024, the company generated a revenue of 531 million yuan, down 14.26% year-on-year, with a net profit of -201 million yuan, a decrease of 34.15% [6][10] - The gene sequencing segment generated revenue of 2.29 billion yuan in 2023, an increase of 30.31% year-on-year, while laboratory automation and new business segments also showed growth [6][10] Financial Performance Summary - The company’s total revenue is projected to recover to 3.505 billion yuan in 2024, with a growth rate of 20.4%, and further increase to 4.225 billion yuan in 2025 and 5.004 billion yuan in 2026 [7][10] - The net profit is expected to improve significantly, with estimates of -196 million yuan in 2024, 74 million yuan in 2025, and 177 million yuan in 2026, reflecting a net profit growth rate of 67.8% in 2024 and over 138% in the following years [7][10] - The gross margin is expected to remain strong, projected at 59.5% in 2023 and gradually increasing to 61.3% by 2025 [10] Market Position - The company holds a 47.3% market share in the new installation market for gene sequencers in China, maintaining its leading position [6][10] - The global new sales installation volume exceeded 854 units, with a market share of 18.7% [6][10] Valuation and Recommendations - The company is expected to have an EPS of -0.47 in 2024, with a projected price-to-sales (P/S) ratio of 7-9 times, leading to a reasonable valuation range of 59.02 to 75.89 yuan [6][10]