The main point supporting ratings is divesting non-performing assets and shedding the burden of losses. After this transformation, the company placed the coal and other businesses with poor profitability and uncertain development prospects as a whole, while at the same time injecting assets from the medical and pharmaceutical industries with strong profitability and broad development prospects to transform the main business of listed companies, fundamentally improve business conditions, and improve the company's asset quality. Nanjing Warwick Pharmaceutical Company has high growth potential, and the industry in which it is located has broad prospects. Warwick Pharmaceuticals was founded in 2000 and focuses on drug development, clinical CRO and other technologies. The company has more than 70 Chinese invention patents and 2 PCT international patents, and has built a strict intellectual property bastion. National policies to promote the development of innovative drugs, high-quality generic drugs, and the introduction of a drug marketing license holder system are conducive to the sustainable and healthy development of Warwick Pharmaceuticals. At the same time, based on existing business, the company actively extends downstream of the industrial chain, strives to develop clinical CRO service business through bundled sales of clinical approval documents, and vigorously explores new customers and markets based on this. Bringing in two major strategic investors to help the company fully transform. Liyi Investment and Ruidong Capital have good resources and experience in the pharmaceutical industry and capital market. They will continue to recommend assets and participate in management for subsequent global mergers and acquisitions, help listed companies integrate merger and acquisition resources, and promote the transformation of listed companies into pharmaceutical R&D and biopharmaceutical industries, thus helping listed companies carry out mixed ownership reforms. The main risk facing the rating is that the integration effect does not meet the expectations of mergers and acquisitions; Warwick Pharmaceutical's R&D has failed, and R&D results cannot be transformed in a timely manner. Valuation Through this major asset restructuring, the company placed loss-making assets, introduced high-quality pharmaceutical assets, and two major strategic investors opened up expansion space in the pharmaceutical sector. According to Warwick Pharma's performance commitments, we estimate the company's earnings per share in 2016-2018 after restructuring and ancillary financing to be $0.28, $0.36, and $0.42. In view of the stable performance and high growth of Nanjing Warwick Pharmaceutical, there is huge room for expansion of listed companies. Referring to the price-earnings ratio of listed companies in the same industry, we gave the company a price-earnings ratio of 80 times the net profit in 2016, corresponding to the target price of 22.40 yuan. The first coverage gives a buying rating.