Incident: Wanfang Development signed a strategic cooperation framework agreement with the Sichuan Provincial Health Planning Commission, stipulating that the Health Planning Commission will give priority to Wanfangwei's partners and agree on hospital Wi-Fi, cloud HIS, and digital dentistry as specific cooperation directions. Comprehensive transformation of Internet healthcare: Wanfang Development has separately acquired 23% of the shares of License Network and 40% of the shares of Yiyuan Network. Chen Xiang and Sina created the Sina Health Channel, provided pharmacies with information services such as pharmacy cloud and membership management in a free manner, and cooperated with Baidu to create a hierarchical dental diagnosis and treatment platform. Yihui uses the hospital's Wi-Fi and WeChat public accounts to achieve mobile interconnection for in-hospital registration, inquiries, and payment, etc., and is already in operation at West China No. 2 Hospital. The Yihui platform has rich monetization models: As with WeChat, iHuan is its channel for obtaining resources from hospitals in Sichuan Province, and its voice quickly accumulates as access to hospitals expands. There is no doubt that intellect is extremely sticky in improving the efficiency of medical treatment, and the monetization model that the market is concerned about is expected to be implemented through methods such as hospital service fees and WeChat Pay sharing. Using mobile internet to carry patient health data has become a trend. Yihui has a leading edge in hospital entrance cards, top-level resource support, and technology implementation. Opening up in-hospital PACS and LIS platforms to penetrate deeply into medical technology, diagnosis and treatment, etc., will bring platform value to a new dimension. Subsequent catalysts are expected to continue to be implemented: in terms of breadth, the number of hospitals connected to the fantasy platform is expected to increase significantly in the near future, cooperation with Tencent is expected to deepen, and the extension of medical information to medical informatization is worth looking forward to; in depth, the integration of in-hospital medical technology and diagnosis and treatment systems is expected to be implemented; cooperation between the clinical network pharmacy cloud and large pharmacy chain manufacturers is expected to accelerate, and 10,000 pharmacies can be expected to be connected by the end of the year. It is expected that the hierarchical dental diagnosis and treatment platform with Baidu will enter the public beta stage, and it is expected that hospitals, clinics, and patients will be closed. The company connects patients with hospital resources, mobilizes clinics and pharmacists to form hierarchical diagnosis and treatment, and completes a closed loop of information flow and capital flow. The overall Internet medical layout is gradually being presented. First “Highly Recommended - A” investment rating. Earnings per share for 2015-2017 are expected to be 0.01 yuan, 0.05 yuan, and 0.08 yuan respectively, corresponding to PE of 1674/336/226 times. Considering the uniqueness of the company's business model in A-shares and future extension expectations, a highly recommended -A rating is given, with a target price of 25.00 yuan. Risk warning: Hospital promotion progress has fallen short of expectations, and the implementation of the Internet medical monetization model has fallen short of expectations.