Company investment advice

It is estimated that the EPS from 2015 to 2017 will be 0.20,0.24,0.30 yuan respectively. Calculated at the closing price on June 30, the market value is 11.5 billion. We believe that the company is the target of obstetrics scarcity, and the future industrial layout of the integration of pregnancy and industry has a huge prospect, and the market capitalization still has a lot of room to improve. The company's original baby care equipment business is growing steadily, the subsidiary is expected to enter the stapler market is expected to re-create a David, the potential market space of the maternity industry is inestimable. Driven by three aspects, there is broad room for the company's valuation to improve. The company participates in Xi Rui and enters the field of stem cell storage, which is the first step in the integrated layout of the pregnant and maternity industry in the future, and the follow-up breakthrough is still worth looking forward to. We are optimistic about the future development of the company and maintain the "recommended" rating.

Main risk factors

The substitution of high-end baby incubator for similar imported products is lower than expected; the expansion speed of stapler business is lower than expected; and the progress of integrated layout of pregnancy and maternity industry is lower than expected.