Behind the 40% decline in stock price in two months: profits of berry gene dropped 53%, and accounts receivable was 1.46 times of revenue

On the one hand, the growth rate of revenue continues to decline, and on the other hand, accounts receivable continue to rise. The net profit of berry gene to its parent company is significantly higher than the operating cash flow. The profit quality is worth paying attention to. < / P > < p > gene testing industry is known as blue ocean. However, as a listed company benefiting from epidemic detection, Chengdu beiruihekang Gene Technology Co., Ltd. (hereinafter referred to as berry gene, 000710. S) Z) In the first half of the year, it did not hand in a brilliant performance. < p > < p > in the first half of 2020, the operating income of berry gene was 721 million yuan, a year-on-year decrease of 4.34%; the net profit of parent company was 117 million yuan, a year-on-year decrease of 53.17%, and the net operating cash flow was – 111 million yuan.

said the novel coronavirus epidemic has been affected by the persistent outbreak of the new coronavirus, and the number of medical treatment departments has declined. However, researchers of investment times have noticed that another comparable listed company, BGI (300676. SZ), achieved operating revenue of 4.108 billion yuan, a year-on-year increase of 218.08%, and a net profit of 1.651 billion yuan, a year-on-year increase of 734.19%. After careful observation, we can find that since the listing of St Tianyi in 2017, the growth rate of its revenue has been declining continuously, and the net profit attributable to the parent company is significantly higher than the net operating cash flow, and the net profit attributable to the parent company in 2019 deviates from the trend of the net operating cash flow. However, while the growth rate of revenue is declining, its accounts receivable are rising. In the first half of 2020, the accounts receivable of berry gene are 1.46 times of the current revenue, and the sales net interest rate decreases by 17.15 percentage points year-on-year, and the weighted return on net assets declines by 7.42 percentage points. However, the inventory of berry gene increased by 139.66% and the asset liability ratio increased by 15.69%. As of October 12, 2020, berry gene closed at 59.14 yuan / share, down 39.7% from the 52 week high of 98 yuan / share set at the end of July this year. < p > < p > berry gene is an innovative biotechnology company. Its main business is gene detection and equipment and reagent sales based on high-throughput sequencing technology, which is in the middle reaches of molecular diagnosis industry chain. It can be seen from the above data that in the past three years, the revenue growth rate of berry gene has been continuously declining, and the net profit attributable to its parent company is significantly higher than its net operating cash flow, and the overall profit quality is weak. < p > < p > it is worth noting that the trend of net profit attributable to parent company deviates from that of net operating cash flow in 2019. The investment times researchers note that 2019 is exactly the last year for berry gene to complete the performance commitment of backdoor listing. < p > < p > from 2017 to 2019, the accounts receivable of berry gene were 514 million yuan, 646 million yuan and 840 million yuan, respectively, accounting for 43.89%, 44.86% and 51.92% of the revenue in the same period. This also means that the company has a weak voice in the downstream. < / P > < p > from the perspective of R & D, the R & D investment accounted for 3.42%, 6.46% and 7.66% of the revenue in the past three years, while that of BGI accounted for 8.3%, 10.45% and 11.93% respectively. < p > < p > in the first half of 2020, the operating income of berry gene was 721 million yuan, with a year-on-year growth of – 4.34%; the net profit of parent company was 117 million yuan, with a year-on-year growth of – 53.17%; the accounts receivable was 1.054 billion yuan, with a year-on-year growth of 25.18%, which was 1.46 times of the current revenue. During the period, the net operating cash flow was – 111 million yuan. However, under such a profitable situation, the stock price of berry gene rose from 37.15 yuan / share at the beginning of the year (the closing price on January 2) to 98 yuan / share (the highest price in the year on July 31), up 163.80%. < / P > < p > although it has dropped by 40% recently, its dynamic PE still exceeds 60 times. However, a number of securities companies predict that the revenue growth rate of berry gene this year will be 20.41%, and the growth rate of net profit attributable to parent company will be – 13.69%. < p > < p > it is worth noting that in the first half of the year, the gross profit margin of berry gene was 53.50%, with a year-on-year decrease of 7.65 percentage points; the sales net interest rate was 15.89%, with a year-on-year decrease of 17.15 percentage points; and the weighted return on net assets was 4.89%, with a year-on-year decrease of 7.42 percentage points. Correspondingly, the company’s inventory in the same period was 556 million yuan, with a year-on-year increase of 139.66%; the asset liability ratio was 32.09%, with a year-on-year increase of 15.69%. < p > < p > of course, it is worth mentioning that the joint-stock company of berry gene and ruigene, its liver cancer early screening precar project, is expected to be implemented in the form of service as soon as the second half of the year. However, it should be noted that the majority shareholder of Tianjin junruiqi equity investment partnership (limited partnership) has reduced its shareholding by more than half. As of December 2, 2020, there are still shares to be reduced. It is understood that since 2020, Tianjin junruiqi equity investment partnership (limited partnership) has reduced 16.0284 million shares, with an amount of 206 million yuan; Zhang Jianguang, a senior executive, has reduced 208900 shares, with a reduction amount of about 10.7979 million yuan. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. 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