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GENSCRIPT BIO(01548) - 2024 H2 - Earnings Call Transcript
GENSCRIPT BIOGENSCRIPT BIO(HK:01548)2025-03-12 00:17

Financial Data and Key Metrics Changes - The group's revenue increased by 6.1% year over year to approximately $590 million [38] - The net profit recorded was around $2.9 billion, primarily due to a one-time investment gain from the deconsolidation of Legend [38] - Adjusted net profit from continuing operations remained stable at approximately $59.8 million [38] - The Life Science Group's revenue was approximately $455 million, representing a 10.2% year-over-year growth [38] - Adjusted operating profit for the Life Science Group was about $90.4 million, reflecting a 15.5% increase year over year [39] Business Line Data and Key Metrics Changes - The Protein segment, representing about 25% of Life Sciences revenue, achieved nearly 50% revenue growth in 2024 [6][22] - ProBio's revenue was $95 million, experiencing a decline of about 13.2% year over year [39] - Bestime's revenue grew by about 24.6% to $53.7 million, achieving an adjusted operating profit of approximately $2.1 million [39][44] Market Data and Key Metrics Changes - Revenue from industrial customers increased largely due to the development of more multinational companies [40] - Revenue from China accounted for about 19% of Bestime's revenue, indicating a strong market presence [34] - The addressable market for protein regions is over $4.5 billion, with growing demand driven by antibody drug discovery and AI-driven protein engineering [22] Company Strategy and Development Direction - The company aims for full-year revenue growth for the Life Science business to be around 10% to 15% in 2025 [49] - ProBio is targeting a revenue growth of 15% to 20% for 2025, excluding the impact of the Lenovo deal [49] - Bestime is targeting constant currency revenue growth of 20% to 25% with a gross margin around 45% [49] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in the second half of 2024, driven by robust demand from AI-related applications and antibody drug research [40] - The company is confident in maintaining growth trends due to continuous R&D investment and expansion into overseas markets [56] - Management expressed optimism about improving profitability in the coming years despite short-term margin pressures [64] Other Important Information - The company has over 250 patents and more than 480 patents in the application process, positioning it as a global leader in the industry [11] - The company joined the United Nations Global Compact, solidifying its commitment to sustainability [12] - A new facility for Bestime is under construction, representing a total investment of RMB 800 million, slated for completion by 2027 [37] Q&A Session Summary Question: Order trend and outlook for 2025 - Management expects faster growth in Europe and the U.S., with moderate growth in China and Asia Pacific [54] Question: Net margin outlook for Life Science segments - Life Science business is targeting growth of 10% to 15% with flat gross margin [55] Question: Impact of global tariffs - Management believes tariffs will not significantly impact business results, focusing on quality and delivery speed [62][63] Question: Gross profit margin for Life Science Group - Short-term profit margins may decrease due to local production expansion, but long-term profitability is expected to improve [64] Question: CapEx guidance for 2025 - Overall CapEx spending will be roughly flat compared to 2024, with increases in specific segments like Bestime [76]