Novogene(688315) 海通国际·2024-08-28 08:03Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 13.48 based on a 2024 PE of 28x [2][10]. Core Insights - In Q2 2024, the company reported revenue of RMB 528 million, a year-on-year growth of 7.94%, and a net profit attributable to shareholders of RMB 51 million, a decrease of 3.66% [8][9]. - For H1 2024, the company achieved revenue of RMB 997 million, reflecting a 7.18% year-on-year increase, with a net profit of RMB 78 million, up 3.86% [8][9]. - The company continues to expand its global presence, having opened a new laboratory in Munich, Germany, as part of its localization strategy [9]. Financial Performance Summary - The company’s revenue for H1 2024 from Mainland China was RMB 496 million, a 6.27% increase, while revenue from Hong Kong, Macau, Taiwan, and overseas regions was RMB 501 million, growing by 8.09% [8][9]. - The gross profit margin (GPM) for H1 2024 was 41.71%, an increase of 0.14 percentage points, while the net profit margin (NPM) was 8.25%, a decrease of 0.20 percentage points [8][9]. - The company’s cash flow from operating activities for H1 2024 was negative RMB 82.34 million, compared to negative RMB 4.51 million in the same period last year [9]. Earnings Forecast - The estimated earnings per share (EPS) for 2024, 2025, and 2026 are RMB 0.48, RMB 0.57, and RMB 0.68, respectively, with net profit growth rates projected at 12.5%, 19.2%, and 19.0% [2][10]. - The company’s revenue is expected to grow from RMB 2,333 million in 2024 to RMB 3,276 million in 2026, with a year-on-year growth rate of 16.5% in 2024 [3][6]. Business Segments - The revenue breakdown for 2024E includes RMB 635.64 million from life sciences basic research services, RMB 269.25 million from medical research and technology services, and RMB 952.58 million from library sequencing platform services [4].