On October 27, 2020, the company released its 2020 three-quarter report. During the reporting period, the company achieved operating income of 6.752 billion yuan, an increase of 225.82% over the previous year; realized net profit of 2,705 billion yuan, an increase of 901.68% over the previous year; and realized net profit after deduction of 2,655 billion yuan, an increase of 1066.14% over the previous year. In the Q3 quarter of 2020, the company achieved operating income of 2,644 billion yuan, an increase of 238.61% over the previous year; realized net profit of 1,054 billion yuan, an increase of 1361.54% over the previous year; and achieved net profit of 1,050 billion yuan, an increase of 2014.66% over the previous year. Profit forecast and valuation: As a leader in the domestic gene sequencing industry, the company responded to the epidemic as soon as possible, launched a variety of COVID-19 test kits, and was quickly approved at home and abroad. At the same time, the company's gas film version of Fire Eye Laboratory took into account the advantages of portability, economy, reliability, and efficiency, and signed a number of overseas orders to help prevent and control the global epidemic. The internationalization and normalization of the COVID-19 pandemic has allowed the company's related businesses to continue to increase the company's performance. At the same time, the company's pre-pregnancy screening and cancer testing businesses will also maintain steady growth in the future. We maintain our profit forecast. We expect EPS for 2020-2022 to be 8.78 yuan, 4.11 yuan, and 3.18 yuan, corresponding to the closing price of PE on October 27, 15.4 times, 33.0 times, and 42.6 times, respectively, maintaining the “prudent increase in holdings” rating. Risk warning: increased market competition; risk of intellectual property disputes; progress in new product development falls short of expectations