Fudan Zhangjiang is a high-tech biotech pharmaceutical company founded in 1996. After a long period of unremitting investment in research and development, we have accumulated a lot in the three major research fields of genetically-engineered drugs, photodynamic drugs, and nanopharmaceuticals. However, for a long time, funding sources have been a bottleneck in making further progress in research and development. In recent years, with the launch of Libaoduo, the first generic drug for treating leukemia, and ELLA, a new drug for genital warts, the company's revenue and profit began to increase dramatically. As the company's R&D funding bottlenecks are broken, the progress of various R&D projects will be accelerated. Heimbofen for the treatment of erythematous moles recently received approval, and is expected to go public in 2014, which will be another growth point for the company in the near future. Our target price for 6-18 months is HK$8.80, which is equivalent to a 40% discount on its NAV. This discount is mainly based on factors such as the company's R&D risk, uncertainty about the market development of listed products, and investors' awareness of such R&D companies. The target price is equivalent to 60x2013 PE and 47x2014PE, which is significantly higher than that of peers, mainly because we expect that a large number of products under development will bring significant revenue and profit growth to the company in the future. The target price has 48% room to rise compared to the current stock price, and the rating is “buy.” An overseas comparable company in Fudan Zhangjiang is AMGN US (AMGN US), an American research and development biotechnology pharmaceutical company founded in 1980. The first product was only listed in 1989. It has now become a global biotech pharmaceutical company giant. In terms of corporate culture and development opportunities, we believe that Fudan Zhangjiang has the potential to become a safe haven for China and may bring similarly high returns to investors. Risks: 1) Risk of R&D product failure, R&D product progress being blocked or delayed, risk of competitors launching the same or similar products earlier. 2) Pharmaceutical industry policy risks, such as the risk of product price reduction, etc.