With a price of 200 million yuan to acquire the remaining 49% of the shares of Mijian Information, a core subsidiary, and the valuation is reasonable, Rongke Technology issued an announcement that the company plans to acquire the remaining 49% of Mijian Information's shares at a price of 20.88 million yuan by issuing shares and paying cash. Of these, 80% were paid by issuing shares, and the issue price was 13.78 yuan/share, for a total of 11.72 million shares issued; 20% was paid in cash, with a cash consideration of 40.38 million yuan. At the same time, the company plans to raise no more than 97 million yuan in supporting capital from the shares issued by Houtuo Investment, Rongtuo Investment, and CICA Investment, and the number of shares issued to raise supporting capital shall not exceed 7.04 million shares. In September 2015, it bought 51% of Mijian Information's shares at a price of 128 million yuan. The company bought 51% of Mijian Information's shares at a price of 127.5 million yuan on September 23, 2015, so the total price of Mijian Information was 329.38 million yuan. Mijian Information promised to achieve net profit of no less than 23.27 million yuan, 30.7 million yuan, and 40.56 million yuan respectively in 16-18. The corresponding PE in 16-18 was 14 times, 11 times, and 8 times, respectively, and the valuation is reasonable. After this transaction, Mijian Information will become a wholly-owned subsidiary of the company. The wholly-owned Mijian Information will further strengthen the company's competitiveness in the field of clinical medical informatization. Mijian Information has leading core technology and mature products and solutions in the field of clinical informatization. The company's main products include clinical information systems for intensive care (ICU), emergency management, surgical anesthesia, etc., as well as intelligent integrated cloud platforms such as hospital unified information platforms, emergency and critical illness cloud platforms, regional emergency collaboration cloud platforms, and telemedicine. Currently, the company's main products have been used in well-known domestic hospitals such as the Chinese People's Liberation Army General Hospital (301 Hospital), Peking University People's Hospital, and Changhai Hospital affiliated to the Second Military Medical University. The company is expected to become an O2O leader in regional health management. We are optimistic that the company is based on: 1) The company's differentiated positioning is in the field of clinical medical informatization and medical big data. The current market space for products and data platform-level products in clinical application segments will reach about 20 billion yuan, which will provide broad space for the company's future growth: 2) The company may grow into an O2O leader in regional health management in the future. In the long run, the health management O2O platform built by Rongke has huge room for expansion, and Rongke has abundant resource conditions to guarantee the promotion and implementation of this model (Rongke uses the impetus of national projects to demonstrate application in several provincial regions in the future, and is expected to serve more than 10 million people); in the short term, Rongke has also found a mature business model (third-party telemedicine business) that can be replicated and implemented in the Northeast region, and it is expected that the scale of revenue will expand in a relatively short period of time. The smart medical company with the smallest market capitalization has huge potential for growth. Maintaining the “buy” rating, we expect the company's net profit in 2016-2018 to be 65 million, 101 million, and 140 million. Considering Shanghai Mijian's increased performance, the company's net profit for 2016-2018 exam preparation is 89 million, 131 million, and 171 million yuan. The company currently has a market capitalization of only 4.7 billion dollars. The market value is 4.97 billion, and the corresponding PE preparation is 56 times, 38 times, and 27 times. It is the company with the smallest market capitalization in the smart medical sector. The company is expected to continue to strengthen its layout in the field of clinical medical informatization and medical big data through endogenous epitaxial methods in the future. We are optimistic about the company's potential to become an O2O leader in regional health management and maintain purchasing ratings. Risk warning: 1) The promotion of clinical medical informatization products falls short of expectations; 2) the health management O2O platform is unable to explore an effective profit model; 3) The macroeconomy continues to decline, leading to a sharp decline in the company's traditional business performance.