Key points: 1. Company Overview — A pioneer in mobile health management products. The company is undergoing a transformation from traditional home healthcare electronic products to mobile health management products. The current products mainly include blood pressure measurement, blood sugar testing products, and other high-value-added household health products. Among them, electronic blood pressure monitors account for about 15% of the global market share, ranking third. In 2010, the company collaborated with consumer electronics manufacturer Apple to launch the iHealth series of products, which became a pioneer in the wearable e-health care market. 2. Hardware products — The iHealth series is full of potential. The company continues to enrich the product line of its own brand iHealth mobile health management series, and also launched new oximeters and blood glucose meters at CES 2013. According to the GSM Association's forecast, the development of the global mobile health market will bring in revenue of 23 billion US dollars by 2017, of which device manufacturers, content and application providers, and healthcare service providers will receive about 6.6 billion, 2.6 billion, and 2.4 billion US dollars, respectively. As a typical application in the field of mobile healthcare, the iHealth series is expected to be the first to benefit from this industry feast, while its gross margin of more than 50% will continue to improve the company's overall revenue efficiency in the future. 3. With the help of “big data,” innovative medical service models are ready to be launched. Based on the development and production of mobile health management equipment, the company pioneered a new trend in wearable medical electronics by implanting the concept of mobile internet into traditional medical device products. However, we believe that connecting test data to mobile smart terminals is only the beginning. In the future, if massive amounts of patient health information can be stored, managed, and analyzed through the cloud and further connected to hospital case systems through cloud storage technology, then use big data technology to monitor and analyze users' health conditions, timely warning, and provide users with matching suggestions for corresponding diagnosis and treatment resources, this will have a disruptive impact on the current medical management model. Relevant departments estimate that waste of medical resources in China accounts for more than 30% of total medical expenses; according to an estimate of 2.89 trillion yuan of total domestic health expenses in 2012, every 1% reduction in waste of medical resources can save the whole society nearly 29 billion yuan in medical expenses. As far as Jiu'an is concerned, if it can take advantage of its first-mover advantage in the field of mobile medical management and the capital advantage of being the first to go public to take the lead in integrating the core links of the industrial chain, future growth will be limitless. 4. Imagination is rich, realistic and realistic, so no ratings yet. Although the company is expected to share the next wave of rapid growth in the mobile medical and health management industry through the extension of the industry chain, its current business situation is not optimistic. Net profit for the full year of 2012 fell by more than 60%. If capitalized development expenses (7.23 million yuan) were treated as expenses, then the company's net profit for the full year of 2012 may fall to zero. We believe that with the increase in sales volume of the independent brand iHealth, the company's short-term growth logic is: 1) gross margin increased significantly, and 2) external demand picked up. According to our estimates, the company's earnings per share in 2013 and 2014 are expected to reach 0.08 and 0.13 yuan, and performance is expected to gradually improve. However, the company's current stock price is still too high compared to the price-earnings ratio in 2014. We believe this implicates the market's optimistic expectations for the company's future integration of the mobile health industry chain. This also validates the views of our topic series from another side. When “traditional hardware” and “next-generation information technology” are integrated, the market always bursts with enthusiastic imagination. We are not rating it yet. Investors are advised to focus on the company's subsequent industrial chain extension actions and beware of the risk of shareholders reducing their holdings. 5. Stock price catalysts: 1) Overseas sales of iHealth products exceeded expectations. 2) Integrate core links in the mobile medical industry chain (such as regional case information networking, mobile diagnosis and treatment app applications). 3) Wearable electronic products have come out in large numbers. 6. Risk warning: Dafi's holdings reduction risk (66.54% of shares recently lifted), rising labor costs squeezing profit margins, exchange risk, national policy risk on medical services, systemic risk of A-shares triggered by macroeconomic downturn