Then, after the epidemic, how will the business of Huada Gene develop? Is it to return to the state before the epidemic? Or walk up a flight of stairs?
To answer this question, let's take a look at the business development before the Huada gene epidemic.
Huada Gene is the first listed company of Huada Group in the A-share market. Before the outbreak, its main businesses were reproductive health, tumor prevention and control, comprehensive precision medical solutions, infection prevention and control, multi-disciplinary big data and synthetic business, among which reproductive health was the core business, and at present it was mainly prenatal testing for newborns, accounting for nearly half of the total income. This business has developed well and is still being promoted nationwide, and the penetration rate is gradually increasing. However, it is a bad thing that young people nowadays don't like having children.
Cancer prevention and control is to "prevent" and "control" tumors. This business has a huge market prospect and is a battleground for military strategists. Early screening of tumors alone has now made several unicorn companies. At present, BGI has invested more and more in this field, and its current income is relatively small, which is expected to become the next growth point in the future.
The comprehensive solution of precision medicine is to provide solutions for large scientific research and medical institutions. Simply put, it is to sell equipment and consumables. This piece is very important. Before the epidemic, the income accounted for 20%, which increased rapidly, mainly for B's business.
Infection prevention and control business is a business that directly benefited from last year's epidemic. At first, it was not the main strength of BGI. Last year, it suddenly became the absolute main force, contributing most of the income and profits. The main source of income is the demand for nucleic acid detection reagents abroad. The growth rate of this business will definitely decline this year, but the status of this business is not the same as that of the whole country. Last year, BGI established the Fire Eye Laboratory in China and abroad, which made great contributions to the global anti-epidemic. At the same time, it also brought BGI equipment and technology to all parts of the world, showing the strength and responsibility of China. How can these laboratories continue to play their role after the epidemic? Can it become an important starting point for overseas business? It is an important point of view of Huada Gene in the next few years.
Multi-group learning big data and synthesis business is research outsourcing, and major scientific research institutions, pharmaceutical companies and hospitals all have scientific research needs. Basically, the research in the field of life science now will do some analysis from the gene level, that is, to do gene sequencing, and sequencing and publishing papers are the strengths of Huada Gene, so it naturally developed into a business. But now the competition in this industry is fierce, and the equipment and technology of gene sequencing have become more popular in the industry. It's not a particularly mysterious thing, and its earning power is average. The proportion of this business has been declining in recent years.
It should be said that after last year's baptism, Huada Gene not only developed its business and trained its team, but also won the praise and trust of the society. The morale and confidence of the company are at an all-time high, but there are also some shortcomings. The income of traditional reproductive health business was affected by the epidemic to some extent, and the promotion of tumor business was not as smooth as expected. The next three years are very important for BGI. Personally, I will pay attention to the following three points:
See how Huada Gene transforms its anti-epidemic dividend and focuses on overseas markets.
Second, look at the progress of BGI's cancer prevention and control business and see if there are any star products.
3. How to develop BGI's reproductive health business, technological innovation and marketing?
Remarks: Huada Gene is a company that I respect very much. From the development of Huada, technological innovation is the biggest driving force. The development process is somewhat similar to gene mutation and unpredictable. There have been several leaps and some pits, but the general trend is positive. Life science is one of the most important fields to change the world in the future, and it is also an area that the country attaches great importance to and supports. There is no need to repeat the industry prospects, but there are also many challenges. Countries are scrambling to seize the commanding heights of science and technology. As a big country, China must have its own core technology and competitive industries, and cannot be controlled by others. As a leading enterprise in the industry, the development of Huada Gene has a driving effect on the whole industry. It is expected that Huada Gene will create greater value for society in the future, and gene technology will benefit mankind.
This article is the author's personal opinion, not as investment and financial advice.