Main points of investment

Recently, the company released its three-quarter report of 2018, during the reporting period, the company achieved operating income of 741 million yuan, an increase of 15.34% over the same period last year, and a net profit of 231 million yuan belonging to the parent company, an increase of 71.54% over the same period last year. After deducting the net profit of 178 million yuan, an increase of 94.14% over the same period last year, excluding the exchange loss of 51.25 million yuan on euro loans in the same period last year, it increased by 24.46% over the same period last year.

Profit forecast: we are optimistic that the new activating element will enter the new version of the health insurance catalogue and is expected to expand rapidly in the next three years to promote the rapid development of the company. We adjusted the EPS of the company from 2018 to 2020 to 1.69,2.11,2.54 yuan respectively, corresponding to the closing price PE of 16,12 and 10 times respectively on October 25.

Risk hint: the promotion of new actives is not up to expectations; Imdo's sales are not up to expectations; and the performance is not up to expectations.