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 poised for development. Maintain an increase in holdings rating, with a target price of 18 yuan. Investment points: Maintain an increase in holdings rating and maintain a target price of 18 yuan. In the first half of the year, the company achieved total operating income of 779.617 million yuan, a decrease of 5.87% over the same period last year; net profit of 114.600.1 million yuan, an increase of 0.44% over the same period last year, in line with previous expectations. Maintain 2016-2018 EPS of 0.25/0.32 /0.39 yuan. Maintain the target price of 18 yuan and maintain the “increase in holdings” rating. The main business is developing steadily, and there is no change in high growth expectations. 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 pharmaceutical business revenue fell 7.31% year on year, and the gross margin was 39.40%, which remained stable; the medical device business revenue rose sharply by 2031.02%. In the context of a comprehensive layout of the big health industry, the company's pharmaceutical sector has remained steady, and the device category has improved dramatically, maintaining high growth expectations. The industrial chain structure has basically been formed, and the three major sectors are advancing collaboratively. The company already has production skills in the entire industry chain, from intermediates to APIs to chemical agents, to maintain the 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 a 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 ability of the company's main business to continue to grow. Accelerate the deployment of Internet services, and the Big Health Platform is poised to go. The company established Haiyao Health Management Co., Ltd. At the same time, the company's joint ventures, Yade Technology and Jin Shengda, have all started Internet medical-related business. Through the industrial layout, rich industry experience and business capabilities have been accumulated, 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 increase project went through successfully. 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.