Guide to this report: The traditional medicine business is developing steadily, and it is expected that it will usher in a long period of growth in performance. The fixed increase project has been approved, and the big health platform with telemedicine as the core is poised to go. For the first time, coverage gave an increase in holdings rating, with a target price of 18 yuan. Investment points: First-time coverage is given an increase in holdings rating, with a target price of 18 yuan. The 2016-2018 EPS is expected to be 0.25/0.32 /0.39 yuan. Based on the two valuation methods of PE and PEG, the target price given to the company was 18 yuan, which corresponds to PE in 2016, which is 71.6 times higher, covering the first time, it was given an “increased holding” rating. The company's traditional medicine business is developing steadily, and it is expected that it will usher in a long period of growth in performance. In 2015, the growth rate of the company's revenue and net profit was at the level of 20%, and the gross profit level was stable. The share of specialty drugs in the company's overall revenue structure is gradually rising, and it is expected that the company's overall gross profit level will continue to rise in the future. Benefiting from the rapid development of the pharmaceutical industry and the Internet medical industry, and the gradual implementation of the company's innovative layout, the company's performance is expected to usher in a long upward cycle. There is a huge mismatch between medical supply and demand in our country, and telemedicine is imperative. There are many pain points in the pharmaceutical and medical fields in our country, and the core focus is on the mismatch between supply and demand for medical service resources. Telemedicine, on the other hand, will effectively resolve the current mismatch between medical supply and demand in China, improve the user experience and the pressure on the hospital side to receive medical treatment. The development of overseas markets has been tested in practice and is showing continuous rapid growth. Although telemedicine in China is in its infancy, the development prospects are extremely broad. The fixed increase project has been approved, and the big health platform with telemedicine as the core is poised to go. The company's fixed increase project was approved by the China Securities Regulatory Commission, and the core focus is on telemedicine projects. The company will provide remote diagnosis and treatment services for primary medical institutions based on the telemedicine service platform, promote the decline of provincial medical technology resources, and effectively improve the professional technical level and service capabilities of primary medical institutions. We believe that the construction of telemedicine projects is the core center for the company to fully advance into the field of big health in the future. This strategy will change the company's basic attributes, and the big health platform is poised to go. Risk warning: policy risk; intensive management risk; innovative business progress falls short of expectations.