The Merchants Communications Group participated in the press conference on marching into the medical and health big data industry organized by Langma Information Union 39 Health Network on July 3. By 2020, the scale of China's health service industry will reach 8 trillion yuan. Langma Information cut in with Internet thinking, and has the advantages of traffic entry, big data capacity and offline medical resources. It is estimated that the EPS of the company in 14-16 years will be 0.60, 0.70, and 0.84 yuan. After considering the dilution of additional shares, the pro forma EPS will be 0.94, 1.17, 1.42, and the "prudent recommendation-A" will be maintained. However, considering the huge market space of the medical and health service industry and the omni-directional layout of the company, as well as the scarcity of online medical treatment and intelligent medical treatment in the A-share market, it is suggested that active attention should be paid to it.

Acquire 39 Health Network to control the traffic entrance. Through the acquisition of 39 Health Network, Langma Information has officially entered the medical and health big data industry, and will increase the net profit of not less than 45 million, 55 million and 65 million yuan in 14-16 years. 39 Health Network is the largest and only profitable health portal in China, with a user base of 120 million person-times per month and a wide range of third-class hospitals and well-known physician resources. Langma has obtained flow entrances and massive data through acquisitions. this is the first step in the company's layout in the field of medical and health care.

Set up a big data research center to occupy the commanding heights of big data in intelligent medicine. The second step in the layout of Langma information in smart medicine is to bring innovation in the medical model through the introduction of big data technology. As a data owner, the establishment of big data Research and Development Center of Langma Information will occupy the commanding height of big data of smart medicine, which will produce huge commercial value through data mining. At the same time, bring innovation in the medical industry model, around users and data to provide new types of medical and health services, the prospect is worth looking forward to.

Policy support, the follow-up is expected to introduce physical medical resources, open up online and offline. In addition to the introduction of big data technology, Langma Information will also introduce offline physical medical resources in the future, which is the third layout. Langma Information, as a listed company in Guizhou Province, its medical and health big data strategy is fully supported by the government, and is expected to take the lead in introducing physical medical resources in Guizhou, so as to open up the online and offline O2O diagnosis and treatment system. Moreover, once the O2O Internet demonstration application of smart medicine is built successfully, Langma information can be promoted to the whole country based on Guizhou, and there will be a broader space in the future.

Maintain the "prudent recommendation-A" rating. We are optimistic about the future development prospect of Langma Information Transformation Healthcare big data. It is estimated that the company's EPS for 14-16 years will be 0.60max 0.70max 0.84 yuan, and after considering additional dilution, the pro forma EPS will be 0.94max 1.17max 1.42 yuan, maintaining the "prudent recommendation-A". However, considering the huge space of the medical and health service industry and the omni-directional layout of the company, and the scarcity of online medical care and smart medical care in the A-share market, it is suggested that active attention should be paid to it.

Risk hint: the acquisition failed and the development of medical business did not meet expectations.