MGI(688114) 中邮证券·2025-03-07 10:23Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [7][15]. Core Insights - The company is expected to benefit from accelerated domestic market share growth due to the recent restrictions on Illumina, a global leader in gene sequencing, which has been placed on an unreliable entity list by the Chinese Ministry of Commerce [6][10]. - The company reported a revenue increase of 10.28% year-on-year for 2024, driven by enhanced sales of gene sequencers and related laboratory equipment, with a significant 89.6% growth in Q4 revenue [4][5]. - The company is positioned as a leader in the domestic sequencing industry, with projections for revenue growth from 32.1 billion yuan in 2024 to 47.55 billion yuan in 2026, alongside a potential return to profitability by 2026 [7][11]. Company Overview - The latest closing price of the company's stock is 81.06 yuan, with a total market capitalization of 338 billion yuan and a circulating market value of 173 billion yuan [3]. - The company has a total share capital of 4.17 billion shares, with 2.13 billion shares in circulation [3]. - The company’s largest shareholder is Shenzhen Huada Technology Holdings Group [3]. Financial Performance - For 2024, the company expects to achieve a total revenue of 32.1 billion yuan, with a net loss of 5.99 billion yuan, which is a reduction in losses compared to the previous year [4][11]. - The company’s total assets as of the end of 2024 are projected to be 103.3 billion yuan, reflecting a 2.10% decrease year-on-year [4]. - The company’s operating expenses increased by approximately 13% due to adjustments in marketing strategies aimed at expanding application promotion and channel development [5]. Profitability Forecast - The company is projected to have a net profit of -5.99 billion yuan in 2024, improving to -0.03 billion yuan in 2025, and returning to a profit of 2.06 billion yuan in 2026 [7][11]. - The expected earnings per share (EPS) are forecasted to improve from -1.46 yuan in 2023 to 0.50 yuan in 2026 [11][14].