The valuation increased by 20 billion yuan in two years, revealing the first share of domestic gene sequencing equipment

In the entire field of medical instruments, the most concerned domestic substitute players in the market, in addition to Lianying Medical, are probably BGI Intelligent Manufacturing

After all, in the field of global second-generation sequencing equipment, BGI intelligent manufacturing is one of the few players

In the past few years, BGI Has had a certain impact

In any industry, the occurrence of "domestic substitution" not only means the migration of the industrial chain, but also the transfer

At present, the IPO price of BGI Intelligent Science and Technology Innovation Board is 87.

Of course, short-term market sentiment does not represent the long-term value

/ 01 /

Relying on the cost performance to break through, the domestic substitute players who have high hopes

Gene sequencing industry chain, the upstream is the sequencer and reagent manufacturers, the middle reaches are gene sequencing service providers, and the downstream is the end customer

According to the Grand View Research market report, in the upstream market of the global sequencing industry in 2019, The market share of Mena is about 74.

There are two main reasons for Mena's extreme strength:

First, because Mena continues to iterate products through research and development, mergers and acquisitions, it always occupies the first position in the performance side; Second, Bena has built a moat in all aspects of sequencing through patent barriers, blocking most industry players.

And BGI Intelligent Manufacturing is the potential player who

In August 2012, BGI acquired Struggle Genomics Inc,000

Subsequently, the company completed the catch-up of Inmena at the technical level by innovating the old way, and successively launched BGISEQ-500, MGISEQ-2000 and other series of desktop sequencers

As shown in the figure below, mgiseq-200 compared to the same type of product as Inmena, although the single-day data production efficiency is slightly slower than NextSeq, but not significant

On this basis, BGI intelligent manufacturing through the "price butcher" tactics to compete for the Inmena market

In just a decade, BGI has gone from a troubled American company to a potential player

/ 02 /

In two years, the revenue tripled and the valuation increased by 20 billion

As mentioned above, the occurrence of "domestic substitution" often means the transfer

In January 2020, BGI Intelligent Manufacturing proposed to be listed on
the Science and Technology Innovation Board.
After dismantling the overseas red-chip structure, it successfully attracted institutional investors, including CITIC M&A, with a post-investment valuation of 16.
8 billion yuan
.

At that time, BGI's annual operating income was only 1 billion yuan, and it had not yet achieved profitability, with a loss of 239 million yuan
in 2019.

However, today, 2 years later, when BGI Is about to be listed on the Science and Technology Innovation Board, the valuation has far exceeded the original figures
.
The answer has been revealed above: $36 billion
.

It is no surprise
that the valuation of BGI Intelligent Manufacturing continues to grow.
Not inferior performance, very competitive price, BGI intelligent manufacturing in recent years, the performance of the rapid growth
.

In 2021, the company's revenue has grown to 3.
92 billion yuan, and successfully turned a profit: net profit reached 490 million yuan
.

Although BGI's current rapid growth has an element
of luck to some extent.

On the one hand, the epidemic has caused the rapid growth of domestic sequencing equipment demand, and BGI Intelligent Manufacturing has reaped greater dividends
.
In 2021, the revenue brought by the epidemic reached 2.
344 billion yuan, accounting for 59.
67%
of the total revenue.

On the other hand, BGI is not only the largest shareholder of BGI Intelligent Manufacturing, but also the company's largest customer
.
In 2021, BGI contributed 601 million yuan
in revenue.

But even after removing the "luck" component, BGI's income performance is not bad
.
After excluding the epidemic and the income of related parties, the "sustained marketization" revenue of BGI Intelligent Manufacturing in 2021 will be about 1.
19 billion yuan
.

In 2019, before the impact of the epidemic, the revenue of the Mena mainland region was 372 million US dollars, which was about 2.
604 billion yuan
at the current exchange rate.
Based on this revenue, BGI's market share in the upstream field of domestic second-generation sequencing is still not low
.

Of course, regardless of the market share, in order to support the current valuation, BGI still has a long way to go
.

/ 03 /

Enter the ultrasound robot track, whether the "cross-circle" can open the ceiling

For gene sequencer companies, different stages have different troubles
.
The current problem that the global hegemon, Mena, needs to consider is the ceiling problem
.

Although from the perspective of matching, because of the strong matching of gene sequencing instruments and reagents, generally different brands of reagent consumables cannot be mixed
.
In order to ensure the test efficiency and accuracy of the sequencing platform, there is basically no substitution between the sequencing reagents of different manufacturers
.

But even in the absence of competitors, the size of the market is ultimately limited
.
In 2019, because of the revenue scale of Meina of $3.
5 billion, it seems to have grown weakly:

The growth rate of total revenue from the most core equipment and reagents has slipped to 7%, and in 2018, this figure was 20%.

Specific to the more subdivided sectors, the revenue of testing equipment has fallen by 6%
year-on-year.

In the past two years, due to the expansion of the scope of application of NIPT products and the development of the tumor precision medicine industry, Mena has temporarily returned to the growth curve
.
However, in order to open the ceiling, Because Mena still chooses to develop in the downstream clinical field, it has invested heavily in the acquisition of GRAIL
, a tumor early screening company.

For BGI, what needs to be considered in the short term is how to get more disks from Inmena, and in the long run, it will inevitably need greater dreams
.

However, the clinical end of the entry is not realistic for BGI Intelligent Manufacturing, after all, it is the territory of BGI
Gene.
However, there are always more
difficulties than solutions.

At present, BGI Intelligent Manufacturing not only expands the circle in terms of instruments and equipment, reagent consumables, etc.
, but also realizes the cross-circle: entering the remote ultrasonic robot track
.

As shown in the figure above, the company has released the MGIUS-R3 model robot to enable remote ultrasound diagnosis
.
Based on this, there seems to be no clear answer
to what kind of company BGI Intelligent Manufacturing will evolve into in the future.

Of course, no matter how BGI intelligent manufacturing develops in the future, the premise is to gain a firm foothold in the gene sequencer market, which is the
most fundamental.