Berry Genomics is a company specializing in developing and commercializing technologies for life sciences and clinical applications.
Berry Genomics mainly sells gene testing services, equipment and reagents based on high-throughput sequencing technology. Its revenue mainly comes from four businesses: medical testing services, reagent sales, equipment sales and basic scientific research services. This coincides with BGI's revenue sources, and it is called "gene dou-heroes" by the industry.
Berry Genomics's product launch conference was held in Beijing, announcing that the scope of application of its NextSeq CN500 gene sequencer has been changed to become an NGS (next generation sequencing technology) that can be applied to medical institutions and can conduct large-scale clinical genetic testing universal platform immediately .
As of 15:00 on February 20, 2019, the market value of BGI reached CNY 27.69 billion and Berry Genomics was CNY 13.30 billion. The business and revenue structures of the two companies almost overlap.
It is estimated that the net profit for 2019-2021 will be 4.09 / 4.65 / 5553 million, with a growth rate of 53% / 14% / 19%. The current stock price corresponding to PE is 31.9 / 28.1 / 23.6x, with a three-year compound growth of about 27%. As a leading company in the field of gene sequencing, the company has significant technological advantages. As the proportion of high-end products for reproductive health testing increases, the gross profit margin has steadily increased, and early cancer screening products are expected to land in 2021, with huge potential space. Based on 25-30 times in 2021, a reasonable valuation of CNY 46.8 ~ 54.6, 27% ~ 48% space from the current stock price of CNY 36.81.
It is estimated that the compound revenue growth rate of the company from 2019 to 2021 is about 24.1%, and the profit attributable to the mother is 26.8%. 2019/2020/2021 EPS are CNY 1.19 / 1.36 / 1.54, corresponding PE is 25X / 22X / 19X.