The subsidiary Desai Systems and Desai products combined to occupy the market: in the first half of 2015, the company achieved main operating income of 295 million yuan, an increase of 51.25% compared to 195 million yuan in the same period last year; realized total profit of 796.735 million yuan, an increase of 49.90% compared to 53.1522 million yuan in the same period last year; net profit attributable to shareholders of listed companies was 488.77 million yuan, an increase of 10.95% compared to 44.5531 million yuan in the same period last year. The company's instrument revenue increased by 82.58% compared to the same period last year. Although the company's gross margin declined and early market development expenses increased as a result, the increase in instrument sales revenue can bring the company continued and stable revenue from in vitro diagnostic reagents in the future, which is conducive to continuing to occupy the market. Increase R&D investment to enrich the product line and enhance the company's competitiveness: In the first half of 2015, the company's R&D investment was 16.3028 million yuan, an increase of 36.90% over the previous year. Research and development projects focus on in vitro diagnostic reagents, biochemical raw materials and diagnostic reagents. The company continues to improve testing programs and expand new business fields to meet the needs of various diagnostic fields such as biochemistry, immunity, molecules, and blood coagulation. With the company's continuous investment in research and development, biochemical projects can maintain steady growth. Chemiluminescence products and blood coagulation analyzers will be the company's new growth points. These product lines are all aimed at hospital laboratory departments, and can use existing channels of the company and Desai to achieve import substitution and enhance the overall competitiveness of the company. Entering the field of molecular diagnosis and developing molecular diagnosis projects: The EnigmaML automation platform integrates multiple processes such as nucleic acid extraction and real-time quantitative PCR to automate the testing process; at the same time, this platform can connect data to the Internet, laying the foundation for future Internet medical treatment. The company began developing molecular diagnostic test kits for the EnigmaML automation platform, and the market prospects are broad. Profit forecast and investment rating: The company acquires two subsidiaries of Desai Systems and Desai Products. The products and existing product channels can reinforce each other and launch 800-speed biochemistries and chemiluminescence platforms to seize the high-end market. The estimated revenue for 2015-2018 is 7.19, 8.27, 9.76, and 1.152 billion yuan. The net profit attributable to listed companies is 1.63, 1.90, 2.30, and 277 million yuan, respectively. The diluted EPS is 0.38, 0.45, 0.54, and 0.65 yuan, corresponding PE is 40X, 34X, 28X, 23X We are optimistic that the company will continue to grow in the field of biochemical diagnostics. For the first time, we have given the company a “buy” rating for the first time in terms of the potential of chemiluminescence and molecular diagnostic platforms. Risk warning: The marketing promotion of chemiluminescence platforms falls short of expectations; bids and prices for biochemical testing projects have been reduced; and product development progress has fallen short of expectations.