Recently, BGI released its 2020 Annual Report. During the reporting period, the company achieved operating income of 4.108 billion yuan, an increase of 218.1% year on year; realized net profit of 1,651 billion yuan, up +734.2% year on year; realized net profit withheld from non-return to mother of 1,605 billion yuan, an increase of +801.5% year on year; of these, the comprehensive precision medicine testing solutions business achieved revenue of 2,992 billion yuan, an increase of 1230.36% year on year. The net operating cash flow inflow of the company was 2,038 billion yuan, an increase of 1760% over the previous year. Profit prediction and valuation: As a leader in the domestic genetic 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 Fire Eye Laboratory has taken into account the advantages of portability, economy, reliability, and efficiency, and has 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 enhance the company's performance. At the same time, the company's pre-pregnancy screening and tumor testing businesses will also maintain steady growth in the future. We adjusted the company's profit forecast. EPS for 2020-2022 is expected to be 8.78, 4.11, and 3.18 yuan. The PE corresponding to the closing price of September 1 will be 17.0, 36.3, and 46.8 times, respectively, to maintain a “prudent increase” rating.