Origin Agritech Announces 2022 300% revenue Growth Projections
Feb 7, 2022 By MarketDepth
Origin Agritech Limited (NASDAQ: SEED) shares jumped about 18% Monday after the agriculture technology company announced that it expects revenues to grow in excess of 300%, to over 150 million RMB, and expects to turn a profit for fiscal 2022. The expected revenue growth is driven by both growth in its existing hybrid seed business and the addition of a new revenue stream of selling nutritionally enhanced crops to feedstock companies.
Biotech Firm in China
Origin Agritech together with its subsidiaries operates agricultural biotechnology and an e-commerce platform in the People’s Republic of China. The company engages in crop seed breeding and genetic improvement activities. It develops, produces, and distributes hybrid crop seeds, as well as develops hybrid seed technology.
Hybrid Seeds Sold Out
Due to increased pre-orders, Origin is already sold out of its hybrid seeds for this year’s planting season. The company is increasing its production capabilities for the next planting season as it expects this trend in demand to continue as climate change continues to pose increasingly significant challenges to farmers.
Sizeable Revenue from BaoDao
Additionally, Origin expects its partnership with BaoDao Feed Ltd to provide sizable revenue growth. Its nutritionally enhanced corn varieties are able to eliminate the need for costly additives and are estimated to double the gross margins for the feedstock companies. Origin is currently in discussions for similar partnerships with other feedstock producers with the goal of creating bespoke crops for each customer, which Origin plans to achieve through its GMO and CRISPR technologies.