Research Status: Recently, we investigated Guizhou Bailing and visited the Chinese Medicine Diabetes Hospital and the Chronic Diabetes Management Program, and exchanged views with company executives on the development of the industry and the company. Key investment points: Yindan knows that it is a new basic drug. The price remains relatively good. The growth rate is expected to maintain and benefit from the idea of “emphasizing prescription drug sales and multi-variety marketing,” and the company's performance growth is impressive. The company achieved revenue of 1.24 billion yuan and net profit to mother of 230 million yuan in the first three quarters, up 22.64% and 32.61% year-on-year respectively, and the revenue growth rate for the first three quarters showed a month-on-month increase. On the one hand, future performance growth is that the largest variety, Yindan XinnaoTong Softgel, is a new base drug, benefiting from a new round of bidding and procurement. Judging from the current tender price, the price remains relatively good, and it is expected that it will continue to grow at a high rate next year. In addition, the company's third-tier products are growing strongly, benefiting from the company's strong marketing strength. At present, a sales team of nearly 3,000 people has been formed. Among them, the prescription drug team has covered more than 3,000 hospitals above level II, and the OTC team has sunk down to the county level. The company's OTC promotion also focuses on the quality of coverage under wide coverage. Currently, it has signed contracts with 5-6 million pharmacies to strengthen the display and promotion of the company's products on terminals. Furthermore, the sales staff can maintain and manage the store, and the company can also grasp it at any time through information technology, and the response speed to the terminal is very high. The company's “pharmaceutical+medical+chronic disease platform” model layout in Guizhou has exceeded expectations. The company has formed a “Tangning Communication+Diabetes Hospital+Device+Chronic Disease Management” in the field of diabetes. After several months of preparation and operation, the first phase of the Guizhou Diabetes Prevention and Control Project has formed a service team of dozens of people. The prevention and control information platform has been set up and put into use. Currently, it manages nearly 2,500 patients, and the activity of patients is high. Furthermore, in addition to Guiyang City, the number of patients in Zunyi City has already exceeded 1,000, which shows that under the impetus of the policy, the following counties and cities are also actively promoting the construction of platforms. We believe that in a short period of less than 3 years, the company has set up hospitals and operated a chronic disease management platform around Tang Ning Tongluo capsules. It has progressed rapidly, and the team has strong execution ability. Tangning Tongluo capsules have pioneered a novel drug promotion model through in-hospital formulation. In Guizhou, the company is expected to use the “Pharmaceutical+Medical+Device+Chronic Disease Platform” model to quickly obtain patient resources, bringing a lot of room for imagination for subsequent companies to promote Tangning communication and form a profitable business model. The actual controller has a high shareholding ratio, and has a high degree of control. As of this year's third quarterly report, Jiang Wei, the chairman and actual controller of the company, and his co-actors hold 71.4% of the company's shares and have a high degree of control over the company. The company's main business is currently growing well, and it has used the Tang Ning channel to enter the diabetes field. It has already made a preliminary layout in hospitals and chronic disease management. With the further layout of the business, the possibility of capital operation is not ruled out in the future. In terms of the new drug layout, the investment proposal is progressing smoothly with the Class 1 new hepatitis B drug - tifentai project and the antineoplastic drug epiferubicin liposome project, which is also a major highlight in the future. We expect the company's 2015-2017 EPS to be 0.3, 0.35, and 0.42 yuan/share. Considering the company's relatively rapid growth rate of performance and the layout surrounding diabetes, we will give it an increase rating.