Genetron Holdings Ltd – ADR (NASDAQ: GTH) stock rose over 2.5% on 26th March, 2021 (as of 10:24 UTC-4 · USD; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 20.
Diagnosis and monitoring revenue grew by 44% to RMB123.5 million (US$18.9 million) in the fourth quarter 2020 from RMB85.8 million in the same period of 2019. The increase was driven by the growth in the revenues generated from both the provision of LDT services, particularly in early screening, and the sale of IVD products. Revenue generated from the provision of LDT services grew by 48.5% to RMB96.9 million (US$14.9 million) during the fourth quarter 2020 from RMB65.3 million in the same period of 2019. In the fourth quarter, sales of LDT services included sales of the early screening test, HCCscreenTM, which contributed to growing portion of total LDT revenue. LDT diagnostic tests sold in the fourth quarter 2020 totaled approximately 5,340 units, representing a decline of 16% compared to the number of LDT diagnostic tests sold in the same period of 2019, mainly due to the resurgence of COVID-19 in our key sales territories in the fourth quarter. However, the average selling price increased compared to the same period in 2019, attributable to a shift to higher value products such as Onco PanScan, and better pricing management. Revenue generated from sale of IVD products grew by 29.5% to RMB26.5 million (US$4.1 million) in the fourth quarter 2020 from RMB20.5 million in the fourth quarter 2019. The growth was mainly driven by the increase in the number of assays and sequencing platforms sold in the fourth quarter 2020.
Moreover, the revenue generated from development services declined by 39% to RMB10.5 million (US$1.6 million) in the fourth quarter 2020, from RMB17.2 million in the same period of 2019.
GTH in the fourth quarter of FY 20 has reported the adjusted loss per share of 2 cents, beating the analysts’ estimates for the adjusted loss per share of 11 cents. The company had reported the adjusted revenue growth of 30.1 percent to $20.5 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $20.28 billion. Gross profit rose by 83.6% to RMB84.1 million (US$12.9 million) in the fourth quarter 2020 from RMB45.8 million in the same period of 2019. Gross margin expanded to 62.8% for the fourth quarter of 2020, compared to 44.5% in the same period of 2019.
Genetron Health expects 2021 revenue to be in the range of RMB615 million to RMB625 million, representing around 45%-47% growth over 2020.