The acquisition of Shixuan Technology received formal approval from the Securities Regulatory Commission, entering medical informatization and laying out smart medical care. Using “equity+cash” to acquire 100% of the shares with 690 million yuan, Shixuan Technology promised that the net profit for 15-17 will not be less than 4688/5859/73.24 million yuan, which is 0.94/1.17/1.46 times the net profit of listed companies in 2014, respectively. Shixuan Technology's business covers digital hospitals, healthy cities, and healthy homes, with outstanding features and advantages: (1) The product line is complete. It provides overall healthcare informatization solutions for digital hospital construction, public health service platforms, regional medical collaboration, and personal health services. (2) Cross-regional characteristics are obvious. The business covers 22 provinces, municipalities directly under the Central Government, and autonomous regions across the country. (3) Leading the gross margin and net profit margin industry. Mainly large and medium-sized customers such as tertiary hospitals in second-tier and third-tier cities, with gross margin of 58% and net profit margin of 34% in 2014, far higher than the industry average and superior to Weining, Wanda, etc. (4) Forward-looking layout of C-side personal health management. From intelligent life terminal collection and smart health service terminals to public health portals and full health service platforms, we will comprehensively build a “cloud plus terminal” product and service strategy. The accelerated deepening of the Big Health layout will open up the company's growth ceiling. The big health industry will enter a golden period of development. The scale is expected to reach 8 trillion yuan in 2020. Since the beginning of '14, the company has tried to enter the 10 billion blue ocean market for in vitro diagnostics, invested in Daqian Biotech and Exxon and built a competitive advantage in “reagents+devices,” and has already obtained excellent investment returns. However, the current acquisition of Shixuan Technology into medical informatization shows the company's determination to further expand its layout. Shixuan Technology, Daqian Biotech, and Exxon are expected to achieve complementary advantages in terms of market and customer resources, and expand the company's product line. Therefore, the company's rational layout of the high-boom health industry will be able to effectively deal with the risk of cyclical weakness in the power business and open up a growth ceiling. The smart grid business is developing steadily, and distribution network automation is expected to contribute considerable incremental benefits. The company is a leader in the field of secondary power equipment, and will benefit from smart grid construction and new power reform in the next few years. On the one hand, traditional advantageous products such as power fault recording analysis devices have a strong market position; on the other hand, distribution network construction is expected to accelerate after a phased slowdown, yet the company's distribution network automation products currently account for less than 2% of revenue, and the potential for development is huge. The value of the company has been underestimated. (1) Valuation: Considering the additional share capital of about 5 billion dollars, it is already the listed company with the smallest market capitalization in the medical information technology sector; the relative valuation of PE is also already low, and it was probably 42/35 in 16/17, respectively, far below the industry average. (2) Elasticity: It is an indisputable fact that the medical and health care industry has broad market prospects. When the stock market stabilizes or even recovers, it is still expected that valuations will increase. (3) Performance: After this round of sharp decline in the stock market, the market's requirements for the company's performance became more stringent. However, according to the currently announced orders and operating conditions, Shixuan Technology's performance should be less of a problem with gambling, and may even exceed expectations. (4) Catalyst: The restructuring has been officially approved by the Securities Regulatory Commission, which means that the company's development will enter the next stage. For example, the time has come to accelerate the integration of resources within the big health business sector and create synergies. At the same time, Shixuan Technology is also expected to start using the listed company platform to launch a new extension layout, etc. The “smart grid+smart medical” two-wheel drive gave it an “increased ownership” rating for the first time. Assuming Shixuan Technology's consolidated performance for the fourth quarter of this year and considering additional share capital dilution, we expect the company's EPS for 15-17 to be 0.25/0.48/0.59 yuan, and the corresponding PE for 15-17 to be 81/42/35.