Key investment events: The 2016 three-quarter report was released. From January to September of this year, the company achieved operating income of 687 million yuan, an increase of 0.34% over the previous year, and net profit attributable to shareholders of listed companies of 46.91 million yuan, an increase of 232.77% over the previous year. The company's operating conditions are good, performance is steady, and profits are improving. Specialty specialty drugs maintained rapid growth: In the first three quarters of this year, specialty specialty drugs achieved sales revenue of 246 million yuan, an increase of 64.59% over the previous year, exceeding market expectations. There was a clear breakthrough compared to last year in tenders for key products such as esomeprazole enteric capsules and urtilins, and hospital development progress. Cannalin focused on promoting applications in the three major fields of thyroid, mammary gland, and gastrointestinal tract. Currently, progress is good, and the market share of related products is rapidly increasing. Proprietary Chinese medicines and tablet products: Due to a sharp increase in sales of American ginseng in the first three quarters of this year, revenue from proprietary Chinese medicines and tablets was 78.71 million yuan, up 64.59% year on year, far higher than the average annual growth rate of 16.62% in 2014 and 2015. A new breakthrough was achieved in foreign cooperation: In the third quarter, Laimei Hong Kong, a wholly-owned subsidiary of the company, subscribed to Athenex, Inc. convertible bonds for 10 million US dollars, thereby investing and cooperating in Athenex with lower risk, and converted to Athenex shares at corresponding discounted prices under the conditions agreed in the agreement. This move will help the company reach a strategic partnership with Athenex in the future, accelerate the implementation of the company's diverse strategies and enhance the company's core competitiveness, and is in line with the company's future development strategy of actively deploying advanced medical technology abroad. Special infusion products are progressing steadily: In the third quarter, the third plant in Kangyuan, Hunan (a subsidiary of Laimei Pharmaceutical) passed inspection by the drug control department and obtained the drug GMP certificate. The production and marketing of special infusion products is progressing steadily. Carrying out consistency evaluation: Currently, the company optimally selects existing varieties under development, focuses on superior varieties, and prioritizes consistency evaluation work. Currently, various tasks are being carried out in an orderly manner. Profit forecast and investment advice: We forecast that Laimei Pharmaceutical (300006)'s 2016-2018 operating income will be 1,226 billion, 1,410 billion, and 1,627 billion yuan respectively, and net profit attributable to the parent company is 90 million yuan, 112 million yuan, and 129 million yuan; equivalent to 2016-2018 EPS of 0.11 yuan, 0.14 yuan, and 0.16 yuan respectively; corresponding PE is 70.00, 65.00, and 67.00 times respectively. The company's endogenous growth is steady, and expectations of extended mergers and acquisitions are strong, so we gave it a “maintenance” rating. Risk warning: risk of extended mergers and acquisitions, product market expansion risk, policy risk.