Matters: The company issued an announcement that it intends to acquire at least 30% of the shares in Origin of Life through acquisitions and capital increases. The main business of Life Origin includes stem cell preparation and storage; application of autoimmune cell technology, etc. The “technology+service” model will be a hot investment spot for the pharmaceutical industry in the future. The company's layout in the rehabilitation field and medical service industry has been continuously improved. It has acquired Rhine Hospital and Swiss Hospital, and the business of Plant Hospital is progressing; this investment in the origin of life should be viewed as a layout for the company in the field of advanced medical technology, and an important part of the layout of the entire “technology+service” industry chain. Key points 1. Complete another important part of the “technology+service” industry chain layout. The company announced that it plans to acquire at least 30% of the shares in Origin of Life through acquisitions and capital increases. The initial valuation of the underlying assets is about 300 million yuan. Its main business is the development and application of technologies such as umbilical cord blood stem cell storage, cell therapy, and genetic testing. This is an important layout for the company in the field of advanced treatment technology represented by cell storage and treatment. The company has previously invested in Schiehn Hospital, Rhine Hospital and Swiss Hospital, and is also pioneering the field of advanced diagnosis and treatment technology. We are optimistic about the “technology+service” model of the entire industry chain. 2. Invest in the origin of life and gain a fulcrum in the field of cell research. According to the company's announcement, Life Origin was established in 2013 and approved by the Hebei Provincial Health Planning Commission in March 2014 to build a stem cell bank in Hebei Province and carry out placenta collection work. After passing the inspection by the Hebei Drug Inspection Institute on February 11, 2015, the Life Origin Stem Cell Bank began operation. Currently, the storage capacity of stem cells is 100,000 copies. Origin of Life is not only the only institution with stem cell storage qualifications in Hebei Province, but also one of the few domestic companies with provincial stem cell bank qualifications. According to the company's announcement, the asset evaluation of Origin Life will be carried out later. Although we do not know the asset status of Life Origin and future profits, it is more important to obtain such a business and technology platform with stem cell storage qualifications, so we are not only optimistic about the future performance contributions that the target assets will bring to the listed company, but also value its synergy within the company with other business segments. 3. The layout of medical services is constantly being improved. The company has a stake in Schiehn Hospital, which is actively promoting the domestic rehabilitation business, and listed companies have invested in Germany's Rhine Hospital and Swiss Hospital. Switzerland and Germany are two of the most developed countries in the field of rehabilitation medicine in the world. The company's continuous improvement of the medical service business platform will become an important export and channel for the clinical application of new medical technology, while also providing high-value-added medical service projects for the medical service business, so we are optimistic about the company's layout in the field of services and technology. 4. Profit forecasting and investment ratings. We expect the company's 2015-2017 EPS to be 0.40, 0.51, and 0.62 yuan, respectively, corresponding to the current stock price valuation 36 times, 28 times, and 23 times. Maintain the company's “Highly Recommended” rating and the 2016 target price judgment of 24-26 yuan.