Incident: The company issued an acquisition report stating that the actual controller, Mr. Chen Xiaxin, increased his holdings of Baida Group, accounting for 0.97% of the total share capital, and indicated that there is still a possibility of continuing to increase his holdings within the next 12 months. The change in equity highlights the value of the company and is beneficial to long-term development. 1) In 2013, Xizi Joint transferred 113 million shares of the company (29.98% of the total share capital) to Xizi International, and the actual controller was changed to Chen Xiaxin; 2) This equity change was the first increase in actual controller holdings since 2013. After the increase in holdings, Mr. Chen Xiaxin directly held 3.66 million shares of Baida Group, accounting for 0.97% of the total share capital, and stated that the possibility of further increasing the company's shares within the next 12 months was not ruled out. The strategic transformation is clear to open up a new medical and health service industry. 1) Currently, the company's main business is concentrated in the traditional trade service industry. The main source of revenue is the Hangbai and Hangzhou hotels and collectibles markets, and the cash flow is extremely stable; 2) While developing traditional commerce and trade, the company actively develops new medical and health service industries, invests in the establishment of Zhejiang Baida Medical Industry Investment Co., Ltd. and aims to build a hospital group integrating hospitals and clinics. Joining hands with Zhejiang Cancer Hospital, it became a scarce target for oncology specialist hospitals. 1) The company signed a cooperation agreement with Zhejiang Cancer Hospital in September to build Xizi International Medical Center; 2) The Xizi International Medical Center project invests 1.5 billion yuan and plans to build 800 beds, with a construction level 3 general hospital; 3) The first 300 beds are expected to be put into use in early 2017; 4) It is high-end, with an estimated annual income of 50-1,000,000 yuan for a single bed, with a net profit of 10-20%. It is initially estimated that the net profit will surpass the main business after all beds are put into use, and it is not ruled out that the company will further focus on oncology treatment Downstream industrial chain extension. Zhejiang's first private tertiary cancer hospital, a new benchmark for private hospitals. 1) Currently, China's public cancer hospitals account for 57%, and private hospitals account for 19%; 2) Medical resources are extremely insufficient and private hospitals account for the current state of medical resource distribution; 3) Project construction is a useful attempt to solve this problem, and has received strong support from the government. The cancer treatment industry has great potential to save the world. 1) According to data from the “2012 China Oncology Registration Annual Report”, the incidence of cancer in China is increasing at a rate of 3%-5% every year, with an average annual cancer medical cost of more than 150 billion yuan. It is estimated that in 2015, there were about 216 million cancer hospitals in China; 2) As of 2009, there were only 116 oncology hospitals, with a total annual revenue of about 20 billion yuan, accounting for 21% of the total revenue of specialist hospitals. Among all types of specialist hospitals, cancer hospitals have the highest average profit and rank second in average income. Valuation and Rating: We expect the company's 2015-2017 EPS to be 0.35 yuan, 0.36 yuan, and 0.37 yuan respectively, corresponding to PE 53 times, 52 times, and 51 times, respectively. We believe that the company's main business is steady. As a scarce target for oncology hospitals, there is some room for imagination, and for the first time, it has been given an “increase” rating. Risk warning: Project construction progress or failure to meet expectations; main business may decline due to economic conditions.