The revenue side of key investment points has begun to accelerate, and performance is in line with expectations. The company released its 2018 three-quarter report. In 2018 Q1-Q3, the company achieved operating income of 22.197 billion yuan (+2.71%), net profit of 1,244 billion yuan (+23.08%), and net profit of 1,092 billion yuan (+14.13%) after deducting non-return net profit of 1,092 billion yuan (+14.13%), respectively. Among them, the third quarter achieved operating income of 7.668 billion yuan (+7.39%), a growth rate of 5.61 pcTS, net profit of 401 million yuan (+16.63%), net profit of 401 million yuan (+16.63%), and deducted non-net profit of 321 million yuan (+1.22%). The difference was mainly due to non-operating income brought about by changes in subsidiary debt amounts. We believe that with the gradual completion of Zhongjian's business connections, the company's future revenue side growth is expected to continue to recover, and overall profitability will continue to improve, and the pressure on cash flow is still there. In the first three quarters of 2018, the company's gross margin reached 22.01%, a year-on-year increase of 7.95pcTS, a sales expense ratio of 10.98%, a year-on-year increase of 6.66pcTS, a year-on-year increase of 6.66pcTS, a net profit margin of 6.65%, and a year-on-year increase of 1.23pcTS. The increase in the company's profitability mainly comes from the optimization of variety and business structure. The company's gross margin declined slightly in the third quarter alone, which is expected to be related to the commencement of commercial business with low gross profit from new mergers and acquisitions. The company's cash flow for the first three quarters was 1,785 million yuan, a decrease of 907 million yuan from the same period last year, mainly due to the increase in accounts receivable and advance payments from medical institutions due to the company's new mergers and acquisitions of commercial enterprises and an increase in its own net sales business. We believe that the company is taking advantage of the “two-vote system” policy to continuously expand the scale of business, and future cash flow pressure is expected to continue in the short term. “Point Strength Network” is advancing at an accelerated pace, and commercial networks are constantly being improved. At the same time as disclosing the three-quarter report, the company announced that it has signed an “Equity Cooperation Agreement” and will invest 6 million yuan to establish Qinhuangdao General Pharmaceutical Co., Ltd. to build a comprehensive pharmaceutical business platform with multiple business formats in Qinhuangdao. In the second half of 2018, the company has successively set up new subsidiaries in Dongguan, Huizhou, Jiangmen and Shenzhen in Guangdong Province, and has acquired Aisen Pharmaceutical and Baohetang in Henan Pharmaceutical. We believe that as the “Point Strength Network” strategy continues to advance, the coverage channels of the company's commercial sector in key regions are sinking further into the region. With the continuous improvement of network construction, the company's revenue and profitability are expected to continue to increase in the future. Risk factors: M&A integration falls short of expectations, excessive competition causes gross margin decline, etc. Maintain a “buy” rating. The company's strategies for refined investment in the industrial sector and strong networking in the commercial sector continue to advance. Profitability is expected to continue to improve, and revenue is expected to gradually recover. Considering that the acceleration of short-term investment mergers and acquisitions is dragging down the gross profit margin, the company's 2018-2020 EPS forecast was lowered to 1.47/1.73/2.09 yuan (original forecast 1.49/1.89/2.39 yuan) to maintain the “buy” rating.