Recently, the company announced its 2018 interim report. During the reporting period, the company achieved operating income of 453 million yuan, an increase of 3.99% over the previous year; net profit attributable to the parent company was 130 million yuan, an increase of 122.93% over the previous year. Net profit after deduction was 103 million yuan, an increase of 57.69% over the previous year. Net profit growth was faster than net profit growth of non-financial net profit, mainly due to government subsidies of 28.87 million in the first quarter. Profit forecast: We are optimistic that the new active ingredient will enter the new medical insurance catalogue. It is expected that it will be rapidly released in the next three years to promote the company's rapid development. We adjusted the company's 2018-2020 EPS to 1.47, 1.87, and 2.41 yuan respectively, and the corresponding PE closing price on August 23 was 22, 17, and 13 times, respectively. Risk warning: the promotion of bioactive drugs falls short of expectations; Imudo's sales fall short of expectations; and performance falls short of expectations.