Key Investment Highlights Recently, Leadman announced its 2015 interim report. During the reporting period, the company achieved operating income of 299 million yuan, an increase of 53.61% year on year, net profit attributable to shareholders of listed companies of 48.88 million yuan, an increase of 10.95% (net profit after deduction, up 1.75% year on year), and EPS 0.31 yuan. The company plans to transfer 15 shares for every 10 shares to all shareholders. Comment: The company's high revenue growth mainly comes from Desai's merger. Excluding the influence of Desai's merger factors, the company's stock business revenue fell 12.53% year on year. By business, the company's reagent revenue was 243 million yuan, an increase of 49.50% over the previous year. In addition to the combined factors, the Sinopharm channel also had a significant positive impact on reagent sales. Currently, the Sinopharm channel achieved sales of 85.76 million yuan. Instrument revenue was 45.52 million yuan, an increase of 82.58% over the previous year. We expect the instrument business to develop steadily and rapidly in the future, driven by the four major categories of self-production (CI1000, BA800), IDS-iSys, Enigma, and Desai, which will gradually become a new driving force for the company's performance growth. Furthermore, the company's R&D projects are progressing smoothly, and external cooperation with IDS and Enigma continues to advance. The company is expected to move from a simple domestic leader in biochemical reagents to an IVD enterprise with integrated instruments and reagents in multiple categories. Profit forecast: Overall, we believe that despite the company's endogenous growth and inventory digestion in the first half of the year, the company achieved steady growth in apparent performance through active foreign cooperative mergers and acquisitions and marketing system reforms. In the future, as the company's new products (IDS, Enigma, chemiluminescence, etc.) continue to be released and epitaxial development continues, its growth rate is expected to increase further. We expect the company's 2015-2017 EPS to be 1.02, 1.23, and 1.48 yuan, respectively, and the corresponding valuations will be 37, 31, and 26 times, respectively, and will continue to maintain the “incremental” rating for the company. Risk warning: The company's accounts receivable are large, and mergers and acquisitions or new business expansion fall short of expectations.