Incident: The company announced its 2015 results, achieving revenue of 2,513 million yuan, net profit of 901 million yuan, and net profit after deduction of 71 million yuan, year-on-year increases of 14.36%, 17.11%, 11.64%, and EPS of 0.43 yuan, respectively, which are basically in line with expectations. Looking ahead to 2016, with the continuous expansion of the company's products, the integration of equipment channels, e-commerce operations, and the continuous advancement of strategic transformation, it is expected to usher in high growth and maintain the company's “buy” rating. Products continue to expand, fully integrate offline and online resources to promote changes in marketing models, and transform into production and service enterprises. The company's performance has been growing steadily over the past 15 years. The products have been fully expanded from traditional and large-scale chemical reagents for industrial production to laboratory chemical reagents, laboratory products and services, medical devices, etc., and the structure has been optimized. Open up ideas in terms of marketing models, build e-commerce platforms to integrate offline resources, and during the reporting period, the company launched a “paid network” (online trading of chemical raw materials, low price and high quality), integrated resources for traditional bulk chemicals, and strived to build a leading domestic B2B platform for the chemical industry; launched “Dr. Mao Laboratory to provide universities and laboratories with “one-stop” solutions (reagents, consumables, services) for laboratory products to seize long-tail customers and meet the needs of different customer groups such as “many varieties and few batches”. In the field of devices, the company established Xilong Medical to build a national high-end medical device logistics distribution service provider. It has contributed profits to the company in 2005. This year, the company will continue to integrate sales and distribution agency channels for medical devices, becoming an important part of the company's performance growth; during the reporting period, the company's new total antioxidant status (TAS) test kit (FRAP method) for health examinations and clinical-assisted diagnosis officially entered the medical service market, enriching the in vitro diagnostic reagent product line and enhancing the competitiveness of the in vitro diagnostic reagent business. Promote transformation and enter the field of genetic testing. The company invested in Fulgent in the United States and set up a domestic genetic technology subsidiary to enter the frontier field of genetic testing. While enriching in vitro diagnostic reagent products, the company created new profit growth points for the company. Fulgent in the United States has excellent qualifications. Its advantages are authority (high recognition), a large number of tests, wide coverage, and low cost. The company plans to establish a third-party medical laboratory, integrate existing resources, use neonatal genetic testing as an entry point, and gradually enter the field of cancer and rare disease testing to promote and operate genetic testing and diagnosis services domestically, injecting momentum into long-term development. Valuation rating: The company actively promotes marketing model changes, integrates offline and online resources, integrates device channels to improve performance, actively deepens in vitro diagnosis, enters the field of genetic testing to promote strategic transformation, and is optimistic about the company's long-term development. EPS is expected to be 0.66, 0.81, and 0.96 (increased and diluted 0.26, 0.32, 0.38), respectively. Risk warning: the progress of medical device channel integration is lower than expected, and the genetic testing layout is progressing faster than expected.