Key investment points A leading domestic smart medical overall solution and service provider. The company's core products are clinical medical management information systems and digital scenario application systems with electronic medical records as the core, and hospitals are their end users. In recent years, the company has also gradually built a regional medical information platform for local governments. Starting with the military hospital informatization project, product capabilities have been continuously improved. The company's core technical team participated in the digital hospital planning and design of the Liberation Army General Hospital. Since then, listed companies have taken the lead in the digital and intelligent construction of the Beijing headquarters, 304 branch, and Hainan branch of the Liberation Army General Hospital, making it an industry benchmark for smart hospitals in China. At the same time, the company is a cooperative development unit for the “Military Next-Generation Hospital Nursing Home Information System” of the PLA General Logistics Department of the Ministry of Health. The basic version of the electronic medical record system developed by the company has been used in 155 hospitals throughout the military. Military hospitals, especially large-scale military hospital projects, help the company polish its core competitive clinical care management system. At the same time, the military hospital's benchmark project also helped the company develop the local hospital market. Three structural factors are expected to accelerate medical informatization. The determination of military hospital affiliations is expected to speed up the process of informatization construction of military hospitals. The construction of medical consortia and medical communities will bring new demand for informatization; medical and poverty alleviation has already spurred the construction of hospitals in the central and western regions, especially in economically weak regions. Adequate orders are expected to drive high revenue growth, and improved profitability will bring high elasticity in net profit. Since 2018, with the recovery of the industry, good news of the company's orders has spread frequently, and several tens of millions of orders have been placed, totaling more than 100 million. Since the proportion of independent products in hospital projects is often higher than that of regional medical projects, it is expected that in 2018, the company's profitability will also increase with the intensive implementation of hospital orders. Profit forecast and investment advice: The estimated EPS for 2018 to 2019 will be 0.83 yuan and 1.14 yuan, respectively. We are optimistic about the company's growth in the field of medical informatization and give it a “prudent increase” rating. Risk warning: increased competition, weakening demand for downstream orders, accounts receivable repayment issues