Since the end of September, MGI's share price has risen by more than 50%, and behind this trend is the company's strong business strength and the logic of continuous cash. From an industry perspective, the gene sequencer industry is undergoing a disruptive change, and MGI is at the forefront of this change.
First of all, from a technical point of view, MGI's sequencer technology route is leading the development of the industry. After the launch of the company's new DNBSEQ-T20 2 in February 2023, the application cost has dropped to $100, an achievement that marks MGI's leading position in the field of sequencers. In addition, the company's consumables business has also shown an obvious trend of large-scale acceleration, and the frequency of instrument use and consumables consumption in 2023Q1-3 have increased significantly, which indicates that the company is entering the first period of consumables volume.
Secondly, MGI has also shown strong strength in market expansion. After winning the U.S. patent lawsuit in 2022 and successfully entering the U.S. market, the company won the European patent lawsuit in March 2023, which marks the gradual improvement of the company's layout in the global market. In addition, the company has also set up customer experience centers in various places to expand the market and enhance brand influence.
In terms of seizing market share, MGI has also shown strong determination and ability. The company's cost-effective advantage is obvious, which makes its overseas expansion in the first three quarters of 2023 achieve obvious results. Whether it is Chinese mainland, Hong Kong, Macao and Taiwan, Asia Pacific, Europe and Africa or the Americas, the company's sequencing revenue has achieved rapid growth.
Of course, we must also be aware of some possible risk factors. First of all, with the rapid development of the industry, the risk of increased competition is inevitable. MGI needs to maintain its technological leadership and continuously improve the quality and performance of its products. Secondly, changes in the international environment may also have an impact on the company's business. For example, international friction and geopolitical risks may adversely affect the company's overseas market expansion. In addition, the company's patent litigation risk also needs to be paid sufficient attention. Despite the company's victories in past patent litigation, it may still face new challenges and risks in the future.
In general, MGI is a company with strong technology and market strength, and the sustained growth of its stock price is a reflection of its strength and market recognition. However, as investors, we also need to pay attention to the risk factors in order to make more informed investment decisions.
Note: The data and opinions in this article are provided by the Zheshang Pharmaceutical team and are for reference only.
A shares