Southwest Securities gave BGI an overweight rating

Mondo Finance Updated on 2024-02-06

Du Xiangyang recently conducted research on BGI and released a research report "Steady Growth of Conventional Business, Gradual Development of Overseas Localization Platform", this report gives an overweight rating to BGI, and the current stock price is 37$4.

BGI (300676).

Investment Essentials. Event: The company released its 2023 annual performance forecast, and it is expected that the company's 2023 annual operating income will be about 4.2 billion yuan to 4.5 billion yuan (-36.).14%~-40.39%), net profit attributable to the parent company of 80 million yuan 1100 million yuan (-86..)30%~-90.04%), deducting the net profit of 75 million yuan 1100 million yuan (-84..)67%~-89.55%), and the regular business returned to a steady development trend. With the gradual dissipation of the impact of public health events, the company's related new crown testing business revenue has decreased significantly compared with the same period in 2022, and the company has then taken the initiative to strategically adjust the product structure of its main business and the first-chain strategy. Excluding the impact of the new crown, the growth rate of conventional business in 2023 will be about 20%. Among them, the business revenue of reproductive health and multi-omics increased slightly year-on-year, and the revenue of tumor prevention and control achieved significant year-on-year growth.

The business layout is gradually clear, and the opportunity is seized to rise strongly. The company's business layout is divided into five business segments: reproductive health services, tumor prevention and control services, pathogenic infection services, multi-omics big data and synthesis business, and comprehensive solutions for precision medical testing. With years of continuous high R&D investment, new products in various sectors have been continuously approved. In terms of product development and performance optimization, the company's HALOS tumor genetic testing data analysis and interpretation all-in-one machine, PMSEQ? The CNV analysis process and drug resistance database have been newly upgraded; In terms of reproductive health business, 200+ dominant monogenic diseases were launched for non-invasive prenatal testing to further prevent and control birth defects; In terms of infection prevention and control, the company launched a new TNGS detection product, "PTSEQ and PTSEQ Plus High-throughput Genetic Testing for Respiratory Tract Infection Pathogenic Microorganisms". In terms of chronic disease prevention and control, Alzheimer's disease risk gene testing (APOE genotyping detection), early coronary heart disease risk gene testing, cardiovascular disease drug gene testing, cognitive impairment disease gene testing products, and nervous system autoimmune antibody testing products were officially launched.

Fully deploy overseas localization platforms to provide medical testing services throughout the life cycle. In terms of international business development, the company relies on the public health prevention and control platform established in the early stage of overseas business, and continues to transform into medical testing service capabilities for the whole life cycle of reproductive health, tumor prevention and control, infection prevention and control, chronic disease prevention and control, etc., and actively expands overseas business based on a number of overseas access product qualifications and quality systems that have been reserved. In 2023, the company will open an independent clinical laboratory jointly established with Tibbiyah in Saudi Arabia, and officially sign a memorandum of cooperation with the Saudi Public Health Authority (PHA). In addition, the company has reached a number of cooperation intentions and signed agreements with medical institutions, scientific research institutes and other partners in Thailand, Brazil, Argentina, Chile, Serbia and other countries, which has further promoted the promotion and application of the company's precision medicine technology in the global market. The company's automatic medical PCR analysis system PM Easylab and its supporting three infectious detection kits have obtained the market access qualification of the Thai Food and Drug Administration and the Saudi Food and Drug Administration, and the infectious disease triple detection kit has obtained the Australian market access qualification. Colorectal cancer testing products have obtained market access qualification in Malaysia.

Profitability** and investment advice: It is expected that the company's apparent revenue growth rate in 2024 will be 63%, maintaining a "hold" rating.

Risk Warning: Policy risk, risk of intensified competition, and new business development may be affected by policy risks, international situation and other factors.

According to the calculation of the research report data released in the past three years, the research team of Du Xiangyang in the southwest has conducted in-depth research on the stock, and the average accuracy in the past three years is 4777%, and its ** attributable net profit in 2023 is a profit of 83.5 billion, **PE converted according to the current price is 1853。

The latest profit** breakdown is as follows:

A total of 1 institutions have rated the stock in the last 90 days, and 1 have overweight ratings.

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