Guide to this report: The company's main business is developing steadily, the industrial chain layout structure is basically in place, the three major sectors continue to advance, and the big health platform is ready to go. Maintaining an increase in holdings rating, the target price is 18 yuan. Maintain the “Overweight” rating and maintain the target price of 18 yuan. In the first half of the year, the company achieved total revenue of 779.61117 million yuan, a decrease of 5.87% over the same period of the previous year; net profit to mother was 114.600.1 million yuan, an increase of 0.44% over the same period of the previous year, in line with previous expectations. Maintain the 2016-2018 EPS at 0.25/0.32/0.39 yuan. Maintain the target price of 18 yuan and maintain the “gain” rating. The main business is developing steadily, and growth expectations are not changed. In the first half of the year, the company's revenue declined slightly, net profit rose steadily, and the gross profit level remained stable. The revenue of the pharmaceutical business decreased by 7.31% year on year, and the gross margin was 39.40%, which remained stable; the revenue of the medical device business increased sharply by 2031.02%. In the context of a comprehensive layout of the health industry, the company's pharmaceutical sector has remained steady, the device category has increased dramatically, and high growth expectations have been maintained. The industrial chain structure has basically been formed, and the three major sectors are promoting it collaboratively. The company already has production skills in the entire industry chain, from intermediates to APIs to chemical agents, to maintain a competitive advantage in the market for major products; continue research and development in the three major sectors to promote a three-level interactive R&D model and virtuous cycle; and establish four major sales systems to maintain strong market penetration and coverage capabilities. The three major sectors continue to advance, maintaining good expectations for the company's ability to continue to grow in its main business. To speed up the layout of the Internet business, the Big Health Platform is ready to go. The company established Haiyao Health Management Co., Ltd., and the company's joint ventures Yade Technology and Jinshengda have all carried out Internet medical related business. Through the industrial layout, we have accumulated rich industry experience and business capabilities, providing a first-mover advantage for speeding up the deployment of Internet medical care in the future. At the same time, the company's fixed growth project successfully passed. The core focus was on telemedicine projects, and the Big Health Platform was ready to go. Risk warning: policy risk; intensive management risk; innovative business progress falls short of expectations.