I. Incident Overview On June 25, 2015, we recently conducted a survey on Huabang Health and exchanged views with the company's management on the main business and construction of the rehabilitation system. 2. Analyze and judge the future performance of the three major businesses. The subsidiary's performance promises to maintain growth. The company's main business is pharmaceuticals, pesticides, and APIs. On the pharmaceutical side, Huabang Pharmaceuticals' performance is growing steadily, and investment in new products continues to increase. Coupled with a strong marketing team and leading domestic position in skin and tuberculosis drugs, performance will continue to increase steadily; in agrochemicals, Huabang Yingtai has successfully listed the new third board and has an independent financing supervision platform; Faure shares and Kaisheng New Materials all promised future performance when they were acquired. In terms of APIs, Han River Pharmaceutical has stepped up research and development efforts for new products to ensure market demand for future products. Based on the above subsidiary situation, we expect the company's profit to maintain a 20-30% growth rate in the next 2-3 years. Actively lay out the field of rehabilitation medicine. Under the two-pronged approach of “based on local+overseas introduction”, the company actively implemented the “Dahuabang Medical Alliance” strategy, focusing on the field of rehabilitation medicine, and successively acquired Shien Hospital, German Rheinland Hospital, and Swiss Biology and Life Origin. Among them, Kuanren Hospital operated by Shien Hospital helped the company build a regional rehabilitation chain center, while the acquisition of Rhine Hospital and Swiss Biotech helped the company introduce advanced rehabilitation technology from abroad into China. This kind of high-end rehabilitation center has a very high gross margin and a great competitive advantage. To build an “Internet Medical Platform for Dermatological Diseases”, Sheshui Internet Medical Company raised 1.9 billion yuan in non-public funding at the end of last year, of which it plans to invest 200 million yuan to build an “Internet Medical Platform for Skin Diseases”. The platform does not follow the “money burning” model. Currently, it is looking for suitable entry points to build an online mobile communication platform for professional doctors and patients with skin diseases by setting up portals and mobile apps. 3. Risks suggest a reduction in drug prices and increased competition in the industry. 4. Profit Forecast and Investment Suggestions We expect the 2015-2017 EPS to be 0.38, 0.48, and 0.56 yuan. Corresponding to PE of 28, 22, and 19, covered for the first time, we give it a highly recommended rating.