Recently, we conducted research on Bangjie Co., Ltd. and exchanged views with the company management on the company's recent business conditions and the company's development direction. Research review: The main business performance is steady, but there is limited room for growth. The company's main business is to provide ODM and OEM seamless clothing manufacturing for international brands and terminal retailers. At present, the company has the fourth largest seamless garment production capacity in the world and the second largest in China, and more than 80% of its products are sold abroad. Seamless clothing is a garment industry segment. Affected by the continued economic downturn at home and abroad and the overall environment of the garment and textile industry, the company's main business revenue growth rate has declined. Revenue for the first three quarters of 2015 was 233 million yuan and 29 million yuan respectively, down 19.41% and 3.3% from the previous year. The company's industrial chain is extended upstream. Fundraising for nylon and wrapped yarn projects, and the ability to start production in 2016 will reduce the company's production costs and increase scale advantages. At the same time, the company will step up research and development of new products to meet upgraded consumer demand and increase profit margins. It is expected to reach 40 to 50 million in the next few years. The seamless garment industry market is in a period of steady growth, and there is limited room for performance growth, so the company is in urgent need of transformation. Committed to transforming medical care and health, it is expected that mergers and acquisitions will continue to be extended. The company's cooperative merger and acquisition fund with Shangxin Capital has entered the medical and health sector, with a total scale of 1 billion yuan (the company's investment of 250 million yuan). The first phase of capital of 200 million yuan has been successfully raised, of which the company has invested 50 million yuan. The company uses a combination of M&A funds to hold shares and direct mergers and acquisitions to hold major medical and health targets. The investment direction covers the medical service industry, the old-age service industry, health products (including pharmaceuticals, diagnostic equipment, reagents, etc.), and multiple industry segments such as Internet medicine. The company takes healthcare and health as the future development direction, and has set up a wholly-owned subsidiary, Bangjie Medical Investment Management Company, to develop the medical and health sector business with stronger profitability and broader prospects through continuous extension mergers and acquisitions into the company's main business. The project can be expected to be implemented, which has a great positive impact on the company's valuation. Although the company has no investment background in the medical and health sector, M&A fund partner Shang Xin Capital has rich investment experience in the healthcare industry and has many industry resources. Starting with the company's announcement to invest in the establishment of a medical and health industry merger and acquisition fund, the company has been preparing M&A fund projects for at least half a year. The merger and acquisition fund set up by the company this time focuses on strategic investment, and will place great importance on the growth space of the invested project industry. It is expected that the emerging medical service sector with broad prospects, emerging technologies representing the future direction of development, and investment in medical institutions will be the direction of the company's mergers and acquisitions. Emerging medical services are represented by Internet medical care, which has restructured the medical ecosystem model and enjoyed policy dividends, while emerging technologies are represented by gene sequencing, cell therapy, and surgical robots. Emerging medical services and emerging technologies are still in the early stages of development, have broad prospects, and will enjoy high valuation levels. 1) Private hospitals: Operating hospital institutions will bring stable long-term benefits and have very good resistance to cyclicality. Private hospitals, especially specialist hospitals, have high profitability and relatively low barriers to entry. The five categories of oncology, pediatrics, obstetrics and gynecology, stomatology, and ophthalmology have high profit margins. Benefiting from policy incentives, and specialist hospitals generally have strong capital attributes, chain management has significantly improved performance. 2) Medical robots: Robots have unparalleled advantages in precision, stability, and strength. In the medical field where the level of expertise is extremely high, robot-assisted surgery will become the mainstream method, and the application prospects are promising. 3) Internet healthcare: Restructuring aspects such as health management, medical treatment, drug purchase, and doctor-patient relationships, with a market space of trillion yuan. Driven by factors such as national policies, technological progress, and changes in the social environment, etc., it will maintain rapid development, and the compound growth rate is expected to exceed 80% in 2015-2018. 4) Emerging technology (precision medicine gene sequencing, cell therapy): Gene sequencing technology is becoming more mature, driven by technological progress, has broad application fields, and huge industry development prospects; non-invasive prenatal testing began to be promoted domestically in 2011 as the first medical application, with a market of about 1 billion yuan in 2013, and the current market potential for this application is about 15 billion yuan. Subsequent applications of disease prediction, diagnosis, treatment, medication guidance, and prognosis monitoring have a market size of trillion dollars. Tumor immunotherapy is one of the most promising research directions in the field of cancer treatment after traditional therapy (surgery, chemotherapy, and radiotherapy) and targeted therapy. According to research data provided by Visiongain, the market share of stem cell therapy reached 2.7 billion US dollars in 2011, and the market is mainly composed of bone marrow stem cell transplantation (BMT). The stem cell therapy market is expected to reach $8.8 billion by 2016. The implementation of any one or more of these projects can have a positive impact on a company's valuation. Earnings forecasts and ratings. The company is committed to transforming healthcare and has expectations of continuing to extend mergers and acquisitions. Although the company has no investment background in the medical and health sector, M&A fund partner Shang Xin Capital has extensive investment experience in the healthcare industry and has many industry resources. The company's transformation, medical care, and health needs are strong, and the project can be expected to be implemented, which will have a very positive impact on the company's valuation. We expect the company's EPS for 2015-2017 to be 0.26, 0.37, and 0.39 yuan, respectively. , maintaining a “buy” rating. Risk warning. Business expansion falls short of expectations; the risk of uncertainty in advancing major medical and health projects.