On March 4, MGI (688114) closed at 97.27 yuan per share at a 20cm limit in the afternoon, and since 2025, the stock has risen by more than 113%, becoming the leader of the A-share medical device sector.

On the same day, U.S. gene sequencing giant Illumina was barred from exporting gene sequencers to China, a further step after it was added to its "Unreliable Entity List" on Feb. 4. Illumina previously accounted for more than 70% of the global gene sequencer market, but the Chinese market has continued to shrink in recent years, and its market share of newly installed domestic capacity has dropped to 26.5% in 2023, while MGI's market share reached 47.3% in the same period, ranking first in China.

Boosted by favorable policies, the gene sequencing sector index rose 3.12% in a single day. Berry Gene (000710) synchronized the daily limit, Shengxiang Biology (688289) and Huada Gene (300676) rose 15.24% and 8.39% respectively. Industry analysis points out that about 4,300 domestic stock of Illumina equipment is facing replacement demand, and the replacement market size is expected to reach 6.8 billion yuan in 2024.

MGI has recently launched new products, including the G400-ER, the world's highest-throughput nanopore sequencer and T1+, a desktop Tb-level sequencer, to fill the technology gap in China. In 2023, MGI's DNBSEQ-T20x2 ultra-high-throughput sequencer has reduced the cost of whole-genome sequencing to approximately US$100 per person, which is 40% lower than Illumina's equipment of the same level.

According to the 2024 financial report, the company's annual revenue was 3.210 billion yuan, a year-on-year increase of 10.28%; the net profit attributable to the parent company was -599 million yuan, a year-on-year decrease of 1.38%; The non-net profit was -650 million yuan, and the loss decreased by 4.70% year-on-year. As of the end of the reporting period, the company's total assets were 10.3 billion yuan, a year-on-year decrease of 2.10%; The owner's equity attributable to the parent company was 7.983 billion yuan, a year-on-year decrease of 7.54%.

According to the company, the increase in operating income of 10.28% is due to the company's technical and quality advantages, accurately meeting the sequencing needs of scientific research and clinical customers for different throughput and application scenarios, and achieving a significant increase in the sales and installed capacity of gene sequencers.