Event: The company released the second phase of the equity incentive plan (draft) and plans to grant a total of 5.4 million shares of equity to 53 senior management, middle management and core technical (business) personnel, accounting for about 1.05% of the company's total share capital, of which 5.11 million shares were granted for the first time and 290,000 shares were reserved for the first time. This incentive plan includes 2.7 million shares each of stock options and restricted shares. The exercise price for stock options is 13.49 yuan/share, and the grant price for restricted shares is 6.75 yuan/share. Comment: The assessment year for the company's equity incentive plan is the three fiscal years 2018-2020. The revenue growth rate and the growth rate after deducting non-net profit are both assessed. Using 2017 as a base, both preset minimum indicators of 6%, 15%, and 27%, and default maximum indicators of 10%, 25%, and 45%. Based on pre-set maximum indicators, the growth rates of the company's revenue and non-net profit in 2018-2020 were 10%, 13.64%, and 16%, respectively, maintaining a relatively rapid and accelerated growth rate. The lifting or exercise rates for 12-24, 24-36, and 36-48 months from the date of completion of the initial (reserved portion) grant registration are 40%, 30%, and 30%, respectively. The product layout is continuously improved, and channel integration is carried out in an orderly manner. The company is a leading in vitro diagnostic enterprise in China. It has gradually laid out five major product lines for biochemistry, enzymatic immunity, photoimmunization, POCT and molecular diagnostics, and the product layout has been continuously improved. The company's biochemical business consolidates terminal coverage with an “instrument+reagent” strategy; the nucleic acid screening business is expected to seize the opportunity when the plasma station blood screening policy is implemented; chemiluminescence's “self-produced excellence+TGS+BioKit” series products complement each other's advantages, and sales volume is worth looking forward to; investing in Aoran biological layout molecular diagnosis. Furthermore, the company is actively recovering the overseas market share of gold standard HIV products, and the export business is about to resume. In addition to strengthening product layout, the company is also actively integrating and optimizing channel resources, and has successively completed holdings in Xi'an Shenke, Guangdong Xinyou, Guangzhou Kehua, Nanjing Yuanheng, and Jiangxi Kerong. Terminal control capabilities have been greatly improved, helping future performance to grow. Maintaining the “buy” rating: We are optimistic about the company's in vitro diagnostic product layout and channel integration. We expect the 2017-2019 EPS to be 0.43 yuan, 0.48 yuan, and 0.55 yuan respectively, and the corresponding PE is 27 times, 24 times, and 21 times, maintaining the “buy” rating. Risk warning: New product development approved, sales promotion falling short of expectations, etc.