Incident: Recently, Jimery Healthcare, the company's second-level holding subsidiary, was approved for listing on the National SME Share Transfer System (“New Third Board”). The transfer method is agreement transfer. At the same time, the number of shareholders of Jimei Healthcare did not exceed 200 when it applied for listing. According to regulations, the China Securities Regulatory Commission exempted the approval of the public transfer of Gemelli Medical's shares, and after listing, it was included in the supervision of unlisted public companies. Comment: Jimmy's listing on the new third board will help expand financing channels and accelerate the orthopedic equipment business. Jimri Healthcare was founded in 2008 and is mainly engaged in R&D, production and sales of orthopedic medical device products. The main products include locking plate nail system series, intramedullary nail series, metal joint plate series, spinal fixation series, etc. The products basically cover a full range of trauma types in the orthopedic field and some types of spine. In September 2014, the company became the actual controller of Jimei Medical through the acquisition of 66.21% of the shares of Jinzhou Medical (a shareholder of Jimei Holding, directly holding 90.625%), thus entering high-end implant devices and extending the company's business industry chain. Currently, Jimei Healthcare is still in a period of growth. The scale of production and sales is small, and it has not yet formed an obvious scale advantage. It needs financial support to speed up new product research and development, expand product support and supply capacity, improve equipment levels, introduce advanced technology and outstanding talents, and expand the marketing service network. However, financing difficulties for small and medium-sized enterprises and lack of direct financing channels have hampered the company's further rapid development. Therefore, the successful listing of Jimei on the new third board will help expand financing channels, reduce financial burdens, increase brand awareness, and accelerate the promotion of orthopedic equipment business. Strengthening its own consumables supply chain will help improve the hospital PPP model and enhance sustainable profitability. The company's hospital PPP model obtains hospital management rights through financing agency construction, and subsequently, it mainly earns continuous revenue through the supply and distribution of pharmaceutical equipment. The company aims to use 3-5 years to obtain the management rights of 30 public hospitals through the PPP model and build its own hospital management brand. This requires strong supply chain capabilities to back it up. The listing of Jimery this time will help the company expand and strengthen its orthopedic equipment business and enhance the company's sustainable profitability by strengthening the supply chain. Profit forecast and valuation: According to the company's business situation, we estimate that the company's EPS for 16-18 was 0.35, 0.52, and 0.66 yuan, respectively, corresponding to 51/34/27 times PE. Considering the catalytic PPP policy and the fact that PPP orders from the company's hospitals are sufficient and implementation is expected to accelerate, it is expected to be extended and 50 times PE for 17 years, which is highly recommended. Risk warning: National PPP policy changes; contract execution time and ratio are lower than expected.