In 2025, BGI Genomics reported revenue, attributable NP, and ex-nonrecurring attributable NP of RMB3.7bn, -RMB617mn, and -RMB636mn. Revenue declined by 4.2% YoY, while attributable net loss narrowed by 31.7% YoY and ex-nonrecurring net loss narrowed by 30.8% YoY, in line with the company's profit alert. In 1Q26, revenue, attributable NP, and ex-nonrecurring attributable NP were RMB809mn, -RMB10mn, and -RMB19mn. Revenue grew by 20.4% YoY, attributable net loss narrowed by 81.9% YoY, and ex-nonrecurring net loss narrowed by 69.4% YoY. The company continued to optimize operating efficiency and cost discipline, supporting quality and efficiency improvements, leading to improving revenue and significantly narrowed losses in 2025 and 1Q26, indicative of strengthening profitability. We are positive on continued earnings improvement, supported by expense control, cost reduction, and efficiency gains. Maintain OVERWEIGHT.
Soft reproductive revenue but steady onco/chronic growth
In 2025, reproductive health business revenue was RMB826mn (-28.1% YoY), and gross margin came in at 43.31%, down by 2.51pp YoY, mainly due to weaker market demand and the impact of volume-based procurement (VBP) policies. Both the sample volume and price of non-invasive prenatal testing declined YoY, causing NIPT revenue to fall by about 28% YoY. The company expanded its primary and tertiary prevention businesses. In 2025, revenue from the genetic disease testing series for assisted clinical diagnosis in the tertiary prevention business grew by about 16% YoY. In 2025, oncology and chronic disease prevention revenue was RMB511mn (-18.3% YoY), and gross margin was 34.06%, up by 0.34pp YoY. The revenue decline was mainly because certain livelihood projects were renewed and launched in 2H25. It was also affected by demand fluctuations from some corporate health screening clients, which weighed on the testing service business.
Robust infection control and precision med revenue
In 2025, infection control business revenue was RMB95mn (+30.3% YoY), and gross margin was 31.08%, up by 50.36pp YoY. Revenue from PTseq products based on targeted high-throughput sequencing technology doubled YoY. Multi-omics big data service revenue was RMB668mn (+0.1% YoY), and gross margin was 31.92%, down 4.01pp YoY. The company effectively overcame the impact of geopolitical disturbance by optimizing its business structure and focusing on core markets and high-value customers. Precision medicine business revenue was RMB1.6bn (+19.5% YoY), and gross margin was 39.10%, down by 9.35pp YoY. BGI Genomics has continued to expand its overseas precision medicine business. Revenue in key regions such as Southeast Asia grew steadily YoY, while business expansion in emerging markets such as Latin America and South Asia delivered exceptional results, notably a doubling of revenue.
Profitability recovery on track; maintain OVERWEIGHT
Based on the 2025 and 1Q26 results, and considering the impact of domestic VBP and medical insurance cost control, we revise down our revenue and gross margin expectations for reproductive health and precision medicine. We forecast 2026, 2027, and 2028 revenue of RMB3.9bn, RMB4.1bn, and RMB4.5bn, down by 3% and 7% versus our previous 2026 and 2027 forecasts. We forecast attributable NP of -RMB1mn, RMB67mn, and RMB140mn, down by 101% and 31% versus our previous 2026 and 2027 forecasts. Considering the company's continued focus on core businesses and sustained profitability improvement through quality and efficiency gains, we apply a valuation multiple of 5.2x 2026E PS, a premium to the average of 4.4x 2026E PS for peers based on Wind consensus estimates. Our target price arrives at RMB48.30 (previously RMB57.72, on 6.7x 2025E PS).
Risks: Larger-than-expected price cuts for VBP products, slower-than-expected testing volume growth.

　　公司2025年收入/归母净利润/扣非归母净利润37.05/-6.17/-6.36亿元，收入同比-4.2%的同时归母净利润同比减亏31.7%、扣非净利润同比减亏30.8%，符合公司业绩预告。1Q26收入/归母净利润/扣非归母净利润8.09/-0.10/-0.19亿元，收入同比+20.4%，归母净利润同比减亏81.9%、扣非净利润同比减亏69.4%。公司持续优化运营效能与强化成本管控，助力提质增效，业绩持续改善，25年及1Q26减亏明显，体现盈利能力明显提升，我们看好后续费用控制叠加降本增效下业绩继续向好，维持增持评级。
　　25年生育健康业务同比下滑，肿瘤慢病防控收入稳定增长
　　公司25年生育健康业务收入8.26亿元（-28.1%yoy）、毛利率43.31%（同比-2.51pct），主要由于市场需求下降及集采政策等影响，无创产前基因检测样本量及价格均同比下滑，导致NIPT收入同比下降约28%。公司积极拓展一级及三级预防业务，25年三级预防业务中的辅助疾病临床诊断方向的遗传病基因检测系列业务收入同比增长约16%。25年肿瘤与慢病防控收入5.11亿元（-18.3%yoy）、毛利率34.06%（同比+0.34pct），收入下滑主要由于部分民生项目在2025年下半年续签并启动，同时受部分商业体检客户需求波动影响，公司检测服务业务有所减少。
　　感染控制、精准医学收入均高速增长，多组学收入同比基本持平
　　25年感染控制业务收入0.95亿元（同比+30.3%）、毛利率31.08%（同比+50.36pct），其中基于靶向高通量测序技术的PTseq系列产品营业收入同比翻倍增长。多组学大数据服务收入6.68亿元（+0.1%yoy）、毛利率31.92%（同比-4.01pct），公司通过优化业务结构、聚焦核心市场与高价值客户，有效克服地缘政治因素影响。精准医学业务收入15.88亿元（+19.5%yoy）、毛利率39.10%（同比-9.35pct），公司精准医学海外业务持续拓展，东南亚等重点区域收入同比稳健增长，拉美、南亚等新兴市场业务拓展成效显著，收入实现翻倍增长。
　　25年公司各项费用率同比降低，毛利率同比下降
　　2025年销售/管理/研发/财务费用率为20.91%/8.90%/12.33%/-1.65%，同比-5.21/-1.69/-3.35/-0.35pct；1Q26销售/管理/研发/财务费用率为19.67%/7.91%/10.97%/-1.97%，同比-4.55/-3.11/-6.49/+2.12pct。公司持续控制销售、管理及研发费用投入，25年相应费用率同比均明显下降。2025年/1Q26毛利率为37.59%/39.71%，同比-3.88/-3.84pct，我们认为主要由于集采等政策影响。
　　多元化业务并进、盈利能力持续改善，维持“增持”评级
　　根据2025年及1Q26业绩情况，考虑到国内集采、医保控费等影响，我们下调生育健康、精准医学等业务收入和毛利率预期，预测26-28年收入为38.9/41.3/44.8亿元（相比26/27年前值下调3%/7%）、归母净利润为-0.01/0.67/1.40亿元（相比26/27年前值下调101%/31%）。考虑到公司持续深耕主力业务，并通过提质增效等措施，盈利能力持续转好，我们给予26年5.2xPS（可比公司26年Wind一致预期PS均值4.4x），目标价48.30元（前值57.72元，25年6.7xPS）。
　　风险提示：集采产品降价超预期；检测量增长不如预期。