21st Century Business Herald reporter Tang Weike, intern Yang Siqi, Guangzhou report
On September 9, BGI officially landed on the Science and Technology Innovation Board , becoming the first Chinese gene sequencer stock. This morning, the share price of BGI Intelligent Manufacturing opened 107 yuan per share, up 22.34%, with a market value of over 40 billion yuan.
According to the prospectus and issuance announcement of Huada Intelligent Manufacturing, the number of shares issued by Huada Intelligent Manufacturing this time is 41.3195 million shares, and the issuance price is RMB 87.18 per share. Based on the issuance price and the number of new shares issued, it is expected to raise 3.602 billion yuan. The issuance price-to-earnings ratio is 74.47 times, while the industry average reference price-to-earnings ratio is 36.17 times.
It is worth noting that since the online valid subscription multiple of Huada Intelligent Manufacturing reached 3851 times, the issuer and underwriter launched the " callback mechanism ". The final number of online issuance accounts for approximately the number of issuances after deducting the final strategic allocation quantity 29.61%, winning rate is 0.0392%.
Capital giants support
Huadazhicheng was founded in 2016. It focuses on the research, development, production and sales of instruments, equipment, reagents and consumables in the field of life sciences and medical and health, and provides a full set of digital equipment for life, which is for precision medicine, precision agriculture, and precision Equipment and solutions are provided for health and other needs.
After obtaining core patented technology by acquiring Complete Genomics (later known as CG company), BGI formed its own sequencer research and development team. At present, BGI has become one of the three companies in the world that can independently develop and mass produce clinical high-throughput gene sequencers.
As of now, BGI has formed two major sectors: gene sequencer business and laboratory automation business, and has laid out products in emerging fields such as remote ultrasonic robots.
has development potential in the field of gene sequencing equipment, BGI has received much attention from capital in just a few years. In May 2019, BGI Intelligent Manufacturing ushered in its first round of strategic financing, with a financing scale of more than US$200 million. In the first half of 2020, with the support of many heavyweight investment institutions including CITIC Capital, IDG Capital, GF Xinde, Zhongzhou Iron City, etc., the post-investment valuation of BGI Intelligent Manufacturing soared to 22.049 billion yuan.
According to its prospectus, the average annual compound growth rate from 2019 to 2021 was 89.73%. On the one hand, driven by industry development and the epidemic, BGI Intelligent Manufacturing's performance has grown rapidly. In 2020 and 2021, the revenue related to the new crown epidemic was RMB 1.985 billion and RMB 2.344 billion, respectively, accounting for 71.41% and 59.67% of the current operating income; non-COVID business revenue also followed closely. , In 2021, after excluding the impact of the new crown epidemic, the company's current revenue was 1.584 billion yuan, higher than the non-new crown business revenue in 2020.
On the other hand, Huada Intelligent Manufacturing stated in its prospectus that from 2019 to 2021, the company's R&D expenses were RMB 343 million, RMB 700 million and RMB 608 million, respectively, accounting for 31.46%, 25.19% and 15.48 respectively, respectively, accounting for 31.46%, 25.19% and 15.48 operating income, respectively. %, the R&D expense ratio is higher than 13% of the total revenue of the average R&D investment of listed companies on the Science and Technology Innovation Board in 2021. As of December 31, 2021, BGI Intelligent Manufacturing and its subsidiaries have a total of 475 major patents, 217 domestic patents and 258 overseas patents.
prospectus disclosed that after the listing of the Science and Technology Innovation Board, the funds raised by BGI Intelligent Manufacturing plan to invest in BGI Intelligent Manufacturing Intelligent Manufacturing and R&D base, BGI Intelligent Manufacturing R&D center, and related products in the field of life sciences and biotechnology production. How to break through the blockade of industry giants? In terms of industry status, the equipment and reagent consumables providers of gene sequencing industry mainly include BGI Intelligent Manufacturing, Illumina, ThermoFisher, PacificBioSciences and OxfordNanopore. Among them, the high-throughput sequencing technology used by BGI, Illumina and ThermoFisher currently occupies a major market share and occupies a leading position. In the laboratory automation service sector, BGI, as one of the few companies in the world that have successfully developed gene sequencers, has accumulated various automation technologies. If connected to the independently developed sequencers, one-stop genes can be built. Test workstation. With the successful launch of more independently developed laboratory automation equipment in the future, the company is expected to become one of the leading automation equipment manufacturers in the field of nucleic acid detection .
From the perspective of performance scale, if the operating income and net profit in 2021 are referenced, BGI Intelligent Manufacturing is still far from the revenue and profit scale of international giants such as Thermo Fisher and Danaher Corporation.
With the breakthrough in high-throughput sequencing technology and the establishment of an independent and controllable source core technology system, BGI has formed "DNBSEQ sequencing technology", "regular array chip technology" and "sequencing in the field of gene sequencing The company has a number of core technologies represented by the Instrumental Optical Mechanical and Electrical System Technology, and other core technologies have been unlocked in overseas markets and enhanced its influence in overseas markets.
"Since 2018, the company has carried out global development, with its market layout and product research and development facing the world, providing customized product services to customers," Liu Jian, vice president of BGI Intelligent Manufacturing, said in an interview with 21st Century Business Herald reporter, "Practical In the above, the equipment of BGI Intelligent Manufacturing can be far more than just used in public health prevention and control, but also in clinical, agriculture and forestry, disease control, customs and other fields. ”
Today, the BGI Intelligent Manufacturing Industry layout spreads to the world. The prospectus shows that from 2019 to 2021, BGI Intelligent Manufacturing's revenue share in mainland China and other regions outside Hong Kong, Macao and Taiwan was 9.34%, 67.49% and 54.31% respectively, and the company's overseas market revenue share grew rapidly.
According to statistics, as of December 31, 2021, Huada Intelligent Manufacturing Business has spread to more than 80 countries and regions on six continents, with 14 subsidiaries worldwide, serving more than 1,300 users, and setting up scientific research and production in many countries and regions. Base and training and after-sales service center.
According to the market report released by Grand View Research in 2020, the market share of high-throughput sequencing technologies adopted by BGI, Illumina, and Thermo Fisher have more than 90%. Takes a major market share.
Illumina is known as the global gene sequencer oligopoly . It once occupied 70% of the global market share and 90% of the gene sequencing data are provided by its equipment. Due to the outbreak of the new crown epidemic, BGI has obtained orders to produce sequencers in large quantities and be used for nucleic acid testing. The emergence of BGI Intelligent Manufacturing has undoubtedly challenged Illumina's dominance.
prospectus shows that since 2019, Illumina and its subsidiaries have launched a number of patent and trademark infringement lawsuits against BGI and its subsidiaries, dealers and customers outside China. The countries and regions involved in the lawsuit include the United States, Germany, Belgium , Switzerland , the United Kingdom, Sweden , France, Spain, Hong Kong, Denmark , Turkey , Finland and other 12 countries and regions, including the United States, Germany, Denmark , Finland , etc. Among these lawsuits, some of the lawsuits, Huadazhi lost the case, related products were banned from being sold, some lawsuits were rejected, and some lawsuits were still under trial.
It is worth mentioning that on July 15, BGI Intelligent Manufacturing announced that it had reached a settlement with Illumina on all pending lawsuits in the United States. Illumina compensates BGI Intelligent Manufacturing with US$325 million, promising that it will not file patents in the next three years. Infringement and violation of US antitrust laws or unfair competition sued BGI and its customers. BGI also began selling its related sequencing products based on CoolMPS technology in the United States in August, and will start selling StandardMPS-related sequencing products in January 2023.
According to the report of Markets and Markets and the data from Zhushi Consulting's "Global and China Life Science Comprehensive Solutions Industry Report", under the joint promotion of the continuous expansion of application scenarios and further strengthening of sequencing capabilities, the global gene sequencer and consumables market is in Double-digit growth has been maintained over the past few years. It is estimated that by 2030, the global gene sequencer and consumables market will reach a market size of US$24.58 billion, and the Chinese gene sequencer and consumables market will reach a market size of US$30.39 billion.
Facing the market that holds huge potential in the future, Liu Jian believes that "If you want to gain a place in international competition, BGI must have core competitiveness: you must have higher cost-effective products and better response speed."
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