Recently, we surveyed company executives and exchanged views on the company's strategic operations. The growth rate of the three-quarter report is relatively rapid. The company's three-quarter report achieved revenue of 501 million yuan, a year-on-year increase of 66.10%, net profit of the parent company of 83.96 million yuan, an increase of 65.35% year-on-year, net profit of 45.35 million yuan, after deducting net profit from the non-attributable parent company of 45.79 million yuan, an increase of 133.79% over the previous year. Zhongyuan Xiehe was the first company in China to invest in biological resource storage projects. It is currently the only listed company in the Shanghai and Shenzhen markets whose main business is cell engineering and genetic engineering, and is driven by dual core development. The company's business includes stem cell storage, stem cell therapy, tumor cell immunotherapy, genetic testing, beauty care, and elderly care (within the group). The short-term operation is based on cell storage and genetic testing clinical reagent business; in the medium term, development is based on beauty care, anti-aging, and tumor cell immunotherapy, and long-term development is based on Chinese medicine and informatization. The company's short, medium, and long-term layout is perfect. Short-term business layout: The cell storage industry currently stores more than 400,000 copies of stem cells. Its 19 cell resource banks cover 2/3 of China and 3/4 of the population (stem cell storage cannot be stored across regions), and have public licenses for national cord blood banks in Tianjin, Zhejiang, and Gansu. In terms of genetic testing, the company has a laboratory in Tianjin. Currently, mRNA, protein testing, Her2, etc. have all been explored. Genetic testing services that have been carried out or are about to be carried out include non-invasive screening, deafness screening, thalassemia testing, etc., and genetic adult testing includes testing of predisposition genes, comprehensive immunity, and tumor marker testing. In the medium term, the company will continue to accumulate products and technologies in fields where there is a lot of room, such as cosmetic anti-aging and tumor immunotherapy. In the long run, the company will use Zhongyuan Pharmaceutical as a platform to focus on developing innovative drugs and genetic drugs. In addition, the company will also launch the Life Bank card, which will provide users with more personalized health and treatment plans in the future. Profit forecast and valuation: The company's main business is precision medicine, and the market space is large, and the company's business layout is relatively complete, including stem cell storage, stem cell treatment, tumor cell immunotherapy, genetic testing, beauty care, and elderly care (within the group). It is a leader with a complete layout of emerging industries, has a certain scarcity, and is worthy of continuous attention. Previously, the company's equity incentive plan was clarified, and the operating income of the company's consolidated accounting report in 2015 increased by no less than 30% compared to 2014, and earnings per share of not less than 0.30 yuan/share; 2016 consolidated company accounting The reported operating income increased by no less than 50% compared to 2015, and earnings per share were not less than 0.80 yuan/share. We expect the company's EPS for 15-17 to be 0.30, 0.80, and 0.93 yuan, and the corresponding PE will be 195, 72, and 62 times, respectively, covering the first time, and giving it an increase in holdings rating. Risk Warning: Emerging Industry Regulatory Policy Risks, Business Development Falls Short of Expectations