Results are in line with expectations Leadman released its 2015 semi-annual report: achieved sales revenue of 299 million yuan, an increase of 53.61% year on year; realized net profit attributable to shareholders of listed companies of 49 million yuan, corresponding to EPS of 0.29 yuan, an increase of 10.95% year on year; in line with our expectations. The development trend also led to high revenue growth, and profit margins declined: the company's revenue increased 53.61% year-on-year in the first half of the year, mainly due to the inclusion of Desai systems and Desai products in the scope of the merger, and the combined revenue volume of the two companies in the first half of 2015 was 129 million yuan. In the first half of the year, the company's gross margin fell to 53.91% from 60.35% in the first quarter of last year, and the net profit margin remained flat, mainly due to the increase in the share of mergers and instrument agency businesses. At the same time, depreciation expenses and related taxes increased after construction projects were completed, which also led to an increase in operating costs. The product line gradually expanded: In the first half of the year, the fully automated biochemical immunoassay analyzer cooperated by the company and IDS was approved, further strengthening the company's influence in the biochemical field. At the same time, the compatibility of the IDS instrument platform acquired by the company with the company's existing chemiluminescence reagents is nearing completion, and chemiluminescence instruments independently developed by the company have also begun to be marketed and sold, and the chemiluminescence business is expected to become a new growth point for the company. Launch epitaxial expansion strategy: In 2014, the company acquired two companies, Desai Systems and Desai Products, and it is expected that in the future, the company will continue to enrich its product line along the inspection field. The profit forecast was adjusted to lower the company's 2015-2017 EPS forecast to 0.89/1.06/1.22 yuan, respectively (the original forecast was 0.93/1.15/1.38 yuan, the reduction was 5%/8%/12%), an increase of 18%/20%/15% over the previous year. The valuation corresponds to the current stock price and the 2015-2017 P/E is 43x/36x/31x. The company's product layout is perfect, epitaxial expansion is rich in product lines, and there is room for improvement in future performance. Maintain the “Recommended” rating and keep the target price unchanged. The original target price was 51 yuan, diluted according to the latest share capital, corresponding to 57x the 2015 P/E. Risk marketing adjustments are progressing slower than expected; chemiluminescence promotion is progressing slower than expected.