At present, the company's non-public offering of shares is temporarily at a standstill. In October 2015, through the fixed increase plan, the company agreed to implement the employee stock ownership plan to participate in the subscription of the company's non-public offering shares in 2015. However, at present, the issue of additional issuance is temporarily at a standstill, because the company is a school-run enterprise, and the major shareholder and the two shareholders have a special background: the major shareholder is Sun Yat-sen University, and the second shareholder is the Guangzhou Municipal Government. The substantive work of the company needs to be carried out in accordance with the internal management measures of state-owned assets, and the additional issuance needs to be approved by the Ministry of Education and the Ministry of Finance, and only after the approval of the general meeting of shareholders and the approval of the China Securities Regulatory Commission.

Although the company has not had any additional issues or employee incentives since its listing, it has not affected the development of the company, and its market capitalization is considerable. The company has not implemented any additional issues or employee incentives since its listing: on March 29, 2016, the company terminated the implementation of the first phase of the equity incentive plan; at present, the non-public offering of shares is temporarily at a standstill. However, since the company went public in 2004, its market capitalization has grown from more than 1 billion to nearly 20 billion, peaking as high as 40 billion. And the bank gives the company a credit line of 1 billion yuan to supplement working capital, so the company's demand for additional issuance is not high, and the slow progress of additional issuance will not affect the development of the company.

3. Investment suggestion

It is predicted that the EPS from 2016 to 2018 is 0.18, 0.23, 0.31 yuan, respectively, and the corresponding PE is 87 times that of 154, respectively. The company is a leading enterprise in the domestic IVD industry. Under the premise of maintaining the current growth rate of reagent and instrument business in the next three years, with the mode of independent laboratory gradually changing from an independent private third-party organization to a joint laboratory and regional inspection center with mixed characteristics, the company's service business will achieve a rapid growth of 40%. We are optimistic about the company's long-term development prospects and suggest that we pay attention to it. There is no investment rating for the time being.