Seek breakthroughs in medical informatization based on traditional vacuum blood collection leaders. The company was founded in 1996. Its main business is to provide clinical testing, nursing and other technologies, products and solutions. It is a leading enterprise in the domestic vacuum blood collection system industry. It is a leading enterprise in the domestic vacuum blood collection system industry. It is struggling with the macro environment, medical system reform, export decline, and new product development such as IVD. The company is actively expanding mobile medicine, medical services, financial leasing, and investing in new businesses. Currently, the business layout is medical laboratory diagnosis+imaging diagnosis+nursing and anesthesia+biomedicine and intermediates+health management five major product platforms, Huiqiao Software Medical Information Platform+Chenzhou Medical Information Platform+Chenzhou Medical Classification Diagnosis and Treatment Healthcare operates 2 medical service platforms, and 2 major investment and financing platforms including Yanghe Investment+Financial Leasing. Research and development continues to be invested, and the launch of new products is about to enter a new stage. Competition in the medical products industry is driven by new equipment research and development. This is because medical equipment products are greatly affected by changes in downstream pharmaceuticals. Generally, when new medical research and development equipment is put into production, the gross margin is 50-60%. Subsequently, as popular prices and gross margin both declined, company management closely followed the company's strategic positioning and goals and continued to increase R&D investment and development of new products to enhance the core competitiveness of its medical products. The latest announcement for the third quarter of 2016 invested 287.60 million yuan in R&D, accounting for 8.08 of total revenue %, an increase of 10.68% over the previous year. Currently, ovulation tests, thromboelasticity, rectoscopy, and cancer tests developed by the company have completed clinical trials or registration, and some products will soon be launched within the year to contribute to performance. Relying on experts and overseas resources, we extend M&A demand opportunities. The period 2016-2018 has been defined as an important period for corporate reform. The company focuses on five major business platforms and actively carries out domestic and overseas extension mergers and acquisitions in medical service fields such as big diagnosis, big medical care, and big health. According to relevant announcements, the company has already jointly established a merger and acquisition fund with a total scale of 600 million yuan as early as 2015 to accelerate the pace of industrial chain integration. Currently, the 2016 semi-annual report says that the company has established a professional merger and acquisition expert group and overseas team to screen and negotiate related projects. The management team is rich in experience and resources, and the increase in ownership of the actual controller shows confidence: the company's management team comes from well-known enterprises and universities such as Johnson & Johnson, P&G, etc., and has rich medical resources, providing strong help to the company's medical service operations and extended mergers and acquisitions expansion. In addition, the company's actual controller, Deng Guanhua, the company's founding shareholder, increased its holdings by 2.03% of the company's shares at an average price of 15.97 (current price 16.71+, with a certain margin of safety) through the asset management plan in July 2016. The 27.43% share of the asset management plan is an incentive policy for employees. Employee and agent motivation. Profit forecast: We forecast 16/17/18 revenue for the next three years to be 529, 6.12, and 697 million, respectively, up -2.90%, 15.60%, and 13.89%, respectively. Net profit attributable to the parent company is 4537, 6077, and 76.46 million, respectively, up 13.90%, 33.94%, and 25.81% year on year. Based on the rich experience and advantages of the company's management, the clear “medical information+medical service” strategic layout, and the continuous development of endogenous and external actions in the next three years of revolution, and considering the high growth rate of the medical information sector and the synergistic effects of medical products, we gave the company a valuation premium of 100 times PE in 17 years, corresponding to the target price of 19.68 yuan, covering the first time, and giving it a “buy” rating. Risk warning: health services sector expansion risk; extended M&A risk; overseas market sales and exchange rate risk