Incident: The company achieved operating income of 1,117 billion yuan for the full year of 2015, an increase of 35.47% over the previous year; net profit to mother was 102 million yuan, an increase of 76.52% over the previous year. The share of smart medical revenue has increased, and smart buildings have been growing steadily. 1) Smart Healthcare achieved revenue of 216 million yuan, accounting for 19.34% of revenue. Compared with the revenue scale of 115 million yuan in 2014, a year-on-year increase of 88%, gross margin level of 30.96%, an increase of 3.09%; 2) Intelligent buildings achieved revenue of 697 million yuan, accounting for 62.46% of revenue, compared with 2014 revenue of 563 million yuan, a year-on-year increase of 24%, and maintained steady growth. Smart city companies around the world took root and grew steadily, opening up new channels for undertaking intelligent construction and informatization projects. The gross margin level was 18.39%, slightly upgrade. Chengdian Medical Star's performance exceeded expectations, and business integration was smooth. 1) The company completed the asset transfer of Chengdian Medical Star in July 2015, marking the further expansion of the company's business in the smart medical sector to the upstream of the industry chain, successfully taking an important step in the “consulting leadership, intelligent cornerstone, energy saving promotion, and medical care first” strategic policy; 2) In 2015, Chengdian Medical Star achieved a net profit of 40.82 million yuan, higher than the promised 39.92 million yuan. The company and Chengdian Medical Star have formed good complementary advantages in various aspects such as market regional distribution, business model, customer composition, and business strategy.. Promote big health management from the top down and build a trinity regional health platform. 1) The company uses smart medical care as part of the top-level design of smart cities, and uses technologies such as mobile medicine, cloud computing, big data, and the Internet of Things to mainly accumulate three types of data: accumulating hospital-level medical informatization data based on highly realistic personal electronic medical records, accumulating region-side data from electronic health files, and continuous activation dynamic data brought about by health management; 2) The specific implementation of the company's smart medical care is a regional health service composed of the Health Planning Commission's management side, medical service agency side, and personal user app (PC) side The platform can carry the above three types of data and enable interaction between the three, thereby deriving other new business models. A two-wheel drive strategy of “deepening business transformation and expansion of epitaxial mergers and acquisitions”. In 2016, the company will continue to explore high-quality mergers and acquisitions in industries such as smart healthcare, smart energy saving, smart environmental protection, etc., to achieve the company's vertical and horizontal mergers and acquisitions goals, expand the size of the company, and expand the industrial chain. Profit forecast and rating: The predicted earnings per share in 2016 to 2018 will be 0.22 yuan, 0.30 yuan, and 0.43 yuan, respectively, and the corresponding PE is 46 times, 34 times, and 24 times, respectively. We believe that the company will continue to expand its competitiveness in the smart medical field, operate steadily in its main business, and maintain a “buy” rating. Risk warning: The smart healthcare business is progressing or falling short of expectations; the industry is growing or slowing down.