The incident company announced the 2017 restricted stock incentive plan (draft). The restricted shares to be granted are 2 million shares, accounting for about 0.99% of the company's total share capital of 202.3 million shares. A brief review of the benefits tied to restricted stocks, and performance promises demonstrate confidence in the development of the ecosystem. This restricted stock incentive targets directors, senior management, and core executives, for a total of 30 people. The grant price is 12.35 yuan per share. The sales restriction period is 12 months from the date the restricted stock is granted and registration. The sales restrictions that can be lifted within 12, 24, and 36 months after the sale restriction period expires are 30%, 30%, and 40%, respectively. The performance assessment target is that the 2017-2019 revenue growth rate is not less than 10%, 25%, and 35%, respectively, based on 2016. The company now uses revenue as a performance assessment indicator mainly because the company will vigorously expand outreach in 2017, build a baby ecosystem, and develop daily necessities for infants, FMCG products and related services based on the original baby clothing. Therefore, revenue is expected to grow rapidly and better reflect the company's expansion effects. The main business is growing steadily, and the ecosystem layout continues to promote the company's three brand matrices of rabbi, next generation, and baby rabbi to fully cover consumer goods “worn” and “used” by infants aged 0-3. The smooth expansion of offline channels in 2016 ensured the steady growth of the main business. At the same time, the company further focuses on the future dividend period of the two-child policy and promotes the long-term development strategy of building an ecosystem. After participating in the maternal and child culture and entertainment industry in 2016, setting up an investment management company, and subscribing to the Maternal, Infant and Child Investment Fund, the company continued to expand in the fields of maternal and child food, medical investment, and maternity, infant and child apparel products in 2017. On May 25, 2017, the company announced that it plans to use 50 million yuan of its own capital to hold 20% of Mile Dairy's shares through capital increases and equity transfers through wholly-owned subsidiaries; in June 2017, it established the Guangdong Jiakang Medical Investment Center with partners such as Guangzhou Jinlinkang Equity Investment Co., Ltd. The company invested 32.3 million yuan to account for 60.95% of the total investment of the partner enterprise; in the same month, the company also announced that it plans to invest in the construction of maternity and child clothing production, design, R&D projects. The construction period is two years, with a total planned investment of 10,000 million yuan, and has obtained local project construction. Permission. Furthermore, the company has further expanded its categories through the sale of children's toys from Ferrari cars and baby bottles from Bfree in the UK, making comprehensive progress in ecological construction in six major fields, including food, clothing, use, play, culture, education, and health care. Investment suggestion: As the first stock for mothers, children and children in China, the company has a comprehensive layout in the industrial ecosystem. It will continue to benefit from the follow-up dividends of the two-child policy and is scarce. The main business is solid and steady, with brand advantages and technical advantages. Investment platforms and extended investment are progressing steadily to actively achieve the strategic goal of a comprehensive ecosystem for the mother, child and child industry. We expect net profit for 2017-2018 to be 8107 and 92.84 million yuan, respectively, up 11.4% and 14.5% year-on-year. The corresponding EPS is 0.40 and 0.46 yuan/share, respectively, and the corresponding PE is 59 and 52 times, maintaining the “increased holdings” rating.