Lisheng Pharmaceuticals is a regional general medicine leader that mainly focuses on cardiovascular antihypertensive drugs. The company has more than 20 categories and more than 100 products. Among them, antihypertensive drugs, mainly “Subiyama” brand indopamide, are the main source of the company's profits. The company's product sales are of a certain regional nature, mainly in North China, followed by East China. High quality low price+brand effect is the company's competitive advantage. Lisheng Pharmaceuticals is not an R&D-driven enterprise, and its sales capacity is not outstanding, but the company's positioning is accurate, the strategy is clear, and the product quality is good. It mainly faces the middle and low end markets, and is less affected by national drug price cuts. “Subishan” brand indopamide tablets are the company's core product, have a high brand awareness, and have an obvious competitive advantage, accounting for 70% of the domestic market share. The significant extent to which it has benefited from medical reform is the company's biggest highlight. The company's products mainly target low-income people. With the expansion of medical insurance coverage, in particular, the rapid increase in the number of rural residents receiving medical insurance, the company's indopamine tablets, as a Class A medical insurance drug, will usher in accelerated growth, driving performance into the fast track of growth. Profit forecast. We estimate that the company's earnings per share for 2010-2012 will be 1.10, 1.34, and 1.68 yuan, respectively. With a PE of 35-40 times that of 2010, the reasonable valuation of the company is 38-44 yuan. Corresponding to the issue price of 45 yuan, the company's valuation is reasonable.