Incident description The company released a quarterly report on April 25: the first quarter achieved revenue of 602.11 million yuan, up 67.22% year on year; net profit of 1,061 million yuan, up 165.08% year on year; net profit after deduction of 9.9808 million yuan, up 168.45% year on year. The incident commented that Shixuan continued to gain strength, laying the foundation for rapid growth throughout the year: the company achieved net profit of 1,06.1 million yuan in the first quarter, and Shixuan's combined factors had a great impact. Shixuan's net profit for the first quarter of last year was 3.7955 million yuan. After adjusting for merger factors, the company's original business and Shixuan's overall revenue increased 17.91% year on year, and overall net profit increased 38.30% year on year. It is expected that the company's original main business will maintain slight growth. It is expected that Shixuan's revenue growth rate will reach 30% and net profit growth rate will reach 50% in the first quarter, continuing to show a rapid growth trend, laying the foundation for rapid growth throughout the year. We believe that the growth rate of the company's medical informatization business is expected to continue: first, the scope of its business is mainly non-provincial capitals and key prefecture-level cities. The level of medical informatization still lags far behind provincial capitals, yet there is an urgent need to improve the level of informatization, and the catch-up effect continues to be reflected; second, the Shixuan product line covers HIS, CIS, regional medical informatization and personal health management, etc., and has had good collaboration and mutual penetration effects; third, since September 2015, the State Council's priority deployment of hierarchical diagnosis and treatment system construction has also added strong impetus to its regional medical informatization platform construction business. Product sales are expected to increase rapidly, and medical layout may be a starting point for a new start: Daqian Biotech has a total of 90 medical device registration certificates, has the ability to provide the most complete laboratory solutions for various medical institutions, and has business in 26 provinces, municipalities and autonomous regions across the country. It is already a powerful medium-sized IVD manufacturer; Exxon Biotech's independent product development has been completed, and the performance explosion is worth looking forward to. Daqian and Exxon's high-quality products are expected to use Shixuan's extensive platforms and rich customer resources to achieve rapid expansion of high-quality channels. The establishment of an industrial investment company with an investment of 50 million yuan is an important sign of speeding up the layout of the medical sector. Expanding business areas and investment channels through professional teams, or ushering in a new starting point for related business layout, the development prospects are worth looking forward to. Accelerated integration is expected to maintain the “buy” rating. The company has excellent quality, stable traditional business, and strong medical business collaboration. Since transforming the medical business, it has continued to grow rapidly, and the establishment of an industrial investment company may be an important sign for accelerated layout. EPS is expected to be 0.5 yuan, 0.75 yuan, and 0.92 yuan in 2016, 2017, and 2018, maintaining the “buy” rating. Risk warning: Business is progressing less than expected.