BEIJING - Origin Agritech Ltd. (NASDAQ: SEED), a prominent agricultural technology company based in China, has reported an estimated revenue growth of 30-40% for the first half of fiscal year 2024, with expected revenues reaching between RMB 85-95 million. This marks a significant increase from the same period in the previous fiscal year.
The company has also announced considerable advancements in its product pipeline, with two new hybrids completing three years of national trials. These are projected to receive approval by this summer and are slated for commercial release in 2025. Additionally, 15 new hybrids are undergoing national official registration trials, demonstrating Origin's continued commitment to diversifying its offerings.
In the realm of genetically modified organisms (GMOs), Origin is making headway with four GMO corn hybrids currently in national trials. These developments are part of the company's strategy to introduce traits that can increase crop resilience and yields. Furthermore, Origin has submitted an application for biosafety certification for a new GMO bt/gt trait, emphasizing its adherence to regulatory standards and innovation in agricultural biotechnologies.
The company also highlighted the success of its new NEC hybrid, which is preparing for large-scale planting in Xinjiang, a move expected to enhance the region's agricultural output and sustainability.
Dr. Gengchen Han, Chairman and CEO of Origin Agritech, expressed optimism about the company's trajectory, stating that the firm is leading in agricultural innovation, as reflected by its strong financial performance and product development progress. Dr. Han emphasized Origin's dedication to leveraging gene editing and hybrid development expertise to tackle food security and agricultural sustainability challenges.
This report is based on a press release statement.
InvestingPro Insights
Origin Agritech Ltd. (NASDAQ: SEED) has shown a notable uptick in its financial performance, with an impressive revenue growth of 77.46% over the last twelve months as of Q4 2023. This surge is reflected in the company’s estimated revenue increase for the first half of fiscal year 2024, positioning the agricultural technology firm as a potentially attractive investment opportunity.
InvestingPro data reveals a market capitalization of $24.31 million USD, underscoring the company's relatively small size within the industry. Despite this, the company's P/E ratio stands at 3.38, suggesting that its earnings are being traded at a low multiple which could indicate an undervalued stock. Moreover, the company has experienced a strong return over the last month with a 43.12% increase, and an even more robust three-month price total return of 79.07%, highlighting a positive short-term investment performance.
Two InvestingPro Tips that may be particularly relevant for investors considering Origin Agritech include:
- The company holds more cash than debt on its balance sheet, which can be a sign of financial stability and may provide a cushion against market downturns.
- Origin Agritech is trading at a low earnings multiple, potentially signaling an opportunity for investors looking for undervalued stocks.
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