Shanghai Baijin has a strong sales channel and will develop a number of new businesses with the help of the financial advantages of listed companies. Shanghai Baijin chooses to cooperate with listed companies, one is to take a fancy to Wilder's product and technological advantages, and the other is to take a fancy to the background and financial advantages of listed companies. Baijin has a strong sales strength and background, will fully integrate the advantages of channels, with the help of the financial advantages of listed companies to develop a number of new businesses, we expect that it will be possible to develop hospital general contract agency equipment business, foreign large-scale medical device merchants regional general generation business of certain products, etc., which will greatly enrich the original medical device agency business chain of Shanghai Baijin. Promote HTC to accelerate its strategic goal of diversification of medical devices.

Wilder color ultrasound business brings the inflection point of growth to build a comprehensive manufacturer of medical devices. Wilder continues to occupy the leading position in the field of black-and-white super segmentation by virtue of R & D advantages, and color ultrasound will be promoted rapidly with the help of cost advantages. The Twelfth five-year Plan for Medical Devices just released by the state will vigorously support domestic color ultrasound leading enterprises is a huge development opportunity for the company. At the same time, Wilder may make full use of the financial advantages of listed companies to carry out vertical and horizontal mergers and acquisitions and step out of the single business of B-ultrasound. We expect that the company will also take advantage of its own R & D platform to develop a series of ultrasonic therapy products.

The two subsidiaries will make use of the background advantages of listed companies to become bigger and stronger. After HTC completed the Wilder absorption merger in the second half of 2010, its profitability has improved significantly. In 2011, Q3 revenue and net profit increased by 55% and 74% respectively compared with the same period last year. The entry of Shanghai Baijin will further accelerate the overall development of the company. Shen Guofu, chairman of HTC, is the chairman of the Association of microfinance companies in Zhejiang Province and has strong financial strength.

Maintain the "overweight" rating, with a target price of 19.8 yuan. The company looks at the volume of color ultrasound recently, the extension of the industrial chain from a distance, and the development direction of Shanghai Baijin's new agency business. It is expected to spread its wings and take off under the background of the national "Twelfth five-year Plan for Medical Devices" to support domestic color ultrasound leaders, and the performance is more flexible. It is estimated that the company's EPS from 2011 to 2012 will be 0.46,0.64 yuan, with a target price of 19.8 yuan. Maintain the "overweight" rating.