Event: The company released three quarterly reports: from January to September 2018, it achieved revenue of 526 million yuan, a year-on-year increase of 74.19%; net profit of 62.2965 million yuan, a year-on-year increase of 35.74%; and EPS per share of 0.52 yuan. Key investment points: Core products continue to grow rapidly, and performance is generally in line with expectations. In 2018, Q3 achieved revenue of 184 million yuan, an increase of 42.34% over the previous year. The decline in the month-on-month growth rate was mainly due to the fact that the “two-vote system” was basically implemented one after another in the second half of 2017. Therefore, the impact of low opening and high opening caused the low base for the first half of last year and high growth. In terms of core products, in January-September, sales revenue for injectable tolasemide was 213 million yuan, up 139.89% year on year; injectable cefotiam hydrochloride sales revenue was 85.54 million yuan, up 116.61% year on year; injectable lansoprazole sales revenue was 54.26 million yuan, up 25.84% year on year; sales revenue of injectable tigecycline was 21.38 million yuan, up 72.76% year on year; sales revenue of injectable cefoxidone sodium was 19.36 million yuan, up 371.46% year on year. In terms of performance, Q3 realized net profit of RMB 21,5874 million, an increase of 30.64% over the previous year, mainly related to a 5.60 percentage point increase in gross margin to 86.64% year on year. The Q3 rate for the period was 71.60%, an increase of 7.71 percentage points over the previous year, mainly due to a sharp increase in the sales expenses ratio. Investment in Italy's NMS Group is progressing step by step, and innovation capabilities are expected to improve significantly. The handover of the Italian company NMS was successfully completed in March 2018. Currently, the management team is in place. Work is being carried out to advance R&D projects and optimize internal management processes, and the NMS Group has begun a new round of financing work and overall overseas listing preparations. We believe that the acquisition integration is progressing smoothly. Considering NMS's R&D pipeline and project process, the company's ability to innovate is expected to improve significantly. Give a “Recommended” rating. We expect the company's 2018-2020 EPS to be 0.71 yuan, 0.92 yuan, and 1.16 yuan, respectively, and PE 31 times, 24 times, and 19 times, respectively. Considering the development of generic pharmaceuticals+innovative drugs, and the inversion between current stock prices and employee stock ownership plans, we give it a “recommended” rating. Risk warning: product sales fall short of expectations; product price reduction pressure; mergers and acquisitions fall short of expectations, etc.