NERV Latest Report

Financial Performance in Review

Based on the provided data, Minerva (stock code: NERV) recorded a revenue of -45,221,555 yuan in 2024, showing a decrease in losses in revenue compared to -71,719,443 yuan in 2023, indicating progress in the company's operations. However, despite the improvement in revenue, it remains in the negative, indicating challenges in the company's competition.

Key Financial Data

1. Revenue Improvement: Revenue in 2024 was -45,221,555 yuan, an improvement of approximately 26,577,888 yuan from -71,719,443 yuan in 2023.

2. R&D Expense Change: R&D expense in 2024 was 19,828,896 yuan, a significant decrease from 47,206,87 yuan in 2023, indicating a more cautious strategy in R&D investment.

3. Marketing and Management Expenses: Marketing, sales, and general management expenses in 2024 were 25,392,59 yuan, slightly higher than 24,512,56 yuan in 2023, indicating some investment in market promotion.

4. Pre-tax Profit Improvement: Pre-tax profit improved from -90,224,459 yuan in 2023 to -42,720,48 yuan, indicating an improvement in overall operating conditions.

Peer Comparison

1. Industry-wide Analysis: The overall demand for the biopharmaceutical industry in 2024 presented a moderate recovery, driven by the recovery of medical equipment bidding and the increase in the number of commercialized innovative drugs. Minerva's revenue improvement may be consistent with the overall recovery trend of the industry.

2. Peer Evaluation Analysis: Compared to other companies in the industry, Minerva's revenue remains negative, but the decrease in revenue is relatively small, which may indicate that the company maintains a certain stability in market share or is gradually recovering.

Summary

Minerva's financial performance in 2024 shows some improvement, with revenue and pre-tax profit improving, although still in the negative. The significant decrease in R&D expenses may have affected revenue growth, while the slight increase in marketing and management expenses indicates the company's focus on market promotion. Overall, the company is gradually recovering in the competition, but its revenue growth potential needs to be closely monitored.

Opportunities

1. New Product Launch: Minerva launched several new products in 2024, which are expected to promote revenue growth, including the S-tensify cell culture platform and SelecTailor customized development services.

2. Major Order Support: The company has signed important contracts with several large pharmaceutical companies, such as a $950 million contract with a US pharmaceutical company and a $220 million contract with Lilly, providing strong revenue support.

3. Industry Recovery Trend: The moderate recovery of the biopharmaceutical industry's market demand provides potential market opportunities for Minerva.

Risks

1. Negative Profitability: Despite revenue improvement, it remains negative, indicating the company still needs to work on profitability.

2. R&D Investment Risk: The decrease in R&D expenses may affect long-term product development and market competitiveness, and future R&D investment strategies need to be carefully evaluated.

3. Market Competition Pressure: Although there is a stable market share, the biopharmaceutical industry is highly competitive, and Minerva needs to maintain innovation and market responsiveness to address potential competition threats.