Core Viewpoint - The article discusses the breakthrough of a new spatial transcriptomics technology, Stereo-seq V2, developed by a Chinese research team, which enables high-resolution, in-situ analysis of host-microbe interactions in FFPE samples, unlocking vast clinical data for research and diagnostics [3][4]. Breakthroughs - Breakthrough 1: Unlocking 90% of Clinical "Treasures" - Over 90% of clinical samples are FFPE, which have been difficult to analyze due to RNA degradation. Stereo-seq V2 can analyze samples preserved for up to 9 years, providing detailed spatial maps of tumor gene expression [8][9]. - Breakthrough 2: Random Primers as a "Universal Key" - Unlike traditional methods that only capture mRNA, Stereo-seq V2 uses random primers to capture the entire transcriptome, significantly increasing the number of detected genes and allowing for precise identification of tumor-specific splicing events [10][11]. - Breakthrough 3: In-situ Capture of Pathogens and Immune Cells - Stereo-seq V2 allows for simultaneous capture of all human and microbial RNA, enabling comprehensive analysis of host-microbe interactions without prior knowledge of the pathogen [12][13]. - Breakthrough 4: Wide Clinical Applications - The technology has broad implications for precision medicine, including identifying gene copy number variations in breast cancer and tracking the dynamics of immune responses in tuberculosis infections [16][19]. Implications for Research and Development - The advancements in Stereo-seq V2 position it as a powerful tool for various fields, including infectious diseases, antibody drug development, and neuroscience, facilitating high-resolution spatial analysis of precious archived samples [25]. - The technology represents a significant leap from merely observing cells to understanding the intricate interactions within them, marking a new era in life sciences research [20][21].

Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected relative performance increase of 5% to 15% over the next 6 to 12 months compared to the benchmark index [2][9]. Core Views - The company has shown resilience in performance amidst geopolitical risks, with steady growth in global sequencing installations. The core sequencing business is experiencing robust growth, supported by domestic market recovery and accelerated overseas expansion [2][6]. - The company achieved a revenue of 3.01 billion yuan in 2024, reflecting a year-on-year growth of 3.48%. However, the net profit attributable to the parent company was -601 million yuan, a slight improvement of 1.10% year-on-year [3][6]. - The report highlights the company's competitive advantage as a domestic leader in sequencing instruments, with a global market share of approximately 7.1% based on revenue and 28.2% based on new installations [6]. Summary by Sections Financial Performance - The company forecasts revenues of 3.61 billion yuan for 2025, with a growth rate of 20%. The net profit is expected to improve significantly, reaching -177 million yuan, a 70% year-on-year increase [2][7]. - In Q1 2025, the company reported a revenue of 455 million yuan, a decline of 14.26% year-on-year, while the net profit attributable to the parent company was -133 million yuan, an increase of 33.67% year-on-year [3][6]. Market Position - The company has accelerated its global expansion, with nearly 900 overseas marketing personnel and a significant increase in installed sequencing machines, totaling over 4,500 units globally by the end of 2024 [6]. - The domestic market share for newly installed instruments reached approximately 63.8%, with revenue market share increasing to 39% [6]. Cost and Efficiency - The report notes a decrease in sales expense ratio to 25.42% and a slight increase in management expense ratio to 19.98%. The R&D expense ratio decreased to 24.77%, indicating improved operational efficiency [6]. - The gross margin for 2024 was reported at 55.51%, a decrease of 3.96 percentage points year-on-year, primarily due to changes in product mix [6]. Future Outlook - The company is expected to continue benefiting from innovative products and global channel development, with projected revenues of 4.5 billion yuan in 2026 and 5.6 billion yuan in 2027, reflecting a growth rate of 25% and 24% respectively [2][6]. - The net profit is anticipated to turn positive by 2026, reaching 182 million yuan by 2027, indicating a significant turnaround from previous losses [2][6].