Guide to this report: The company cooperated with Zhongyu Capital to set up a 3 billion yuan medical merger and acquisition fund to accelerate the company's transformation into medical and other major health industries. The target price was 15 yuan, and the holding growth rating was maintained. Incident: On October 12, the company announced that the company, its actual controller, and Zhongyu Capital have jointly funded the establishment of the Zhongyu Xindazhou Medical M&A Investment Fund. The fund size is 3 billion yuan, which will be set up in three phases. Comment: Determining the determination to stop the unblocked transformation, and setting up a merger and acquisition fund points to health care. The acquisition of 60% of the shares of the Simpson Yacht Group and the Shanghai Bairui Oncology Clinic project was terminated because the communication time required between the company and the acquirer was too long, and the purchase price was too low, but the pace of the company's transformation into major health industries such as medicine has not stopped. The company plans to cooperate with Zhongyu Capital to establish a medical merger and acquisition fund with a total scale of 3 billion yuan, to be set up in three phases, with an initial scale of 1 billion yuan. It will be used to acquire medical targets, help the company transform and upgrade its business, and maintain the 15/17 EPS of 0.08, 0.10, and 0.13 yuan. Also, consider that Transformational Healthcare receives a higher valuation premium than similar companies, giving it 150 times PE in '16, with a target price of 15 yuan, and maintaining an increase in holdings rating. Zhongyu Capital is rich in medical resources, and the “PE+ listed company” model is developing together. Zhongyu Capital has a management scale of nearly 8 billion yuan, focusing on investment in the medical industry. It has successively invested in more than 60 outstanding local pharmaceutical and medical enterprises (4 listed and 19 under review), and has strong industry resources. Zhongyu Capital's adoption of the “PE+ listed company” merger and acquisition fund model has been promoted in nearly 10 listed companies, and the medical resources of related companies have been better improved through this. This time, the company's 3 billion dollar cooperation with Zhongyu Capital is unprecedented, and the company is expected to use its team and resources to seek high-quality mergers and acquisitions in fields such as specialist hospital operations and medical devices. Create a situation where the three main industries advance together to hedge against the downside risks of the coal industry's prosperity. As of 2015 H1, the company's revenue was mainly composed of industry and service industries, of which the coal industry accounted for 46% and the logistics service industry accounted for 24.7%. Due to factors such as weak domestic demand growth, the downward trend in coal prices has not yet ended. If the company maintains its original business structure, performance growth may be under pressure. In order to break the growth restrictions, the company plans to build the three main industries of industry, service, and medical care. Among them, the industry will be transformed through online marketing, the service industry will be strengthened by enriching the supply chain, a new medical industry will be built from an innovative perspective, and the company's strategic upgrade will be completed. Electric vehicles are the highlight of the industrial business, with the help of online marketing to welcome significant development. The company released a new electric vehicle product. While using the original physical store sales, it also increased marketing through online channels such as news media and WeChat platforms, and the new products showed a situation where supply was in short supply. In 2015 H1, the company produced a total of 54,000 vehicles and sold 55,300 vehicles, up 117% and 101% respectively over the same period last year, and contributed 87.03 million yuan in revenue for the half year, accounting for 21%. As subsequent companies continue to strengthen their marketing policies, the business is expected to maintain a high growth rate. Risk warning: coal prices continue to fall, and the progress of transformational health care is lower than expected