With the increasing aging of our country and the gradual deepening of fewer children, China is required to improve its fertility rate in the future, fully liberalizing the second child will become the most effective model to solve the problems. If the policy of "fully liberalizing the second child" is launched in the near future, it is bound to greatly increase the number of newborns in China, and the increase in the number of newborns will bring a lot of demand for prenatal screening and parenting equipment, and related industries will also usher in the second golden opportunity for development. In addition, with the continuous improvement of China's medical level, the speed of equipment renewal is accelerated. at the same time, with the rapid development of gynecology and obstetrics departments in China's gynecology and obstetrics hospitals and third-class hospitals, the conservation industry will also accelerate the growth.

David Medical, as the leading enterprise of domestic conservation equipment, the products and applied technologies produced by the company are much higher than those of other domestic companies in the same industry. the performance of the products is basically the same as that of foreign imported products, but the price advantage is obvious. the ratio of performance to price is much higher than that of foreign imports. At the same time, after decades of hard work in the conservation equipment industry, the product brand has been recognized by the vast majority of hospitals and has an advantage in the product brand. At present, with the increasing expectation of the full liberalization of the second-child policy and encouraging domestic medical device products to replace imported products, the competitive advantage in David Medical's care equipment industry is very obvious.

While consolidating its dominant position in the conservation industry, David Medical continues to extend to the upstream and downstream industries, and at the same time actively develop other medical device industries. At present, the company has successfully entered the field of stem cell storage and stapler. In the later stage, the company is expected to continue to implement the epitaxial development plan and establish an integrated service platform for pregnancy and pregnancy.

To sum up, we predict that the EPS of the company from 2015 to 2017 will be 0.27,0.33,0.42 yuan respectively, corresponding to 130,107,83 times of PE respectively.

Risk Tips:

1) the risk of the full liberalization of the two-child policy is lower than expected.

2) the risk of extension development is lower than expected.

3) the development of conservation industry is lower than expected risk.