Event: The company released the 2018 performance forecast: The net profit of the mother in 2018 is expected to be 82 million yuan to 85.287 million yuan, an increase of 25%-30% over the previous year, in line with our previous expectations. Key investment points: The performance was in line with expectations, and the quarterly growth rate declined further month-on-month. The net profit realized by the company in Q4 was 19.035 million yuan - 22.8842 million yuan, which is not much different from net profit of Q2 and Q3 in a single quarter. It can be said that the company's performance is relatively stable. However, since the two-vote system was implemented in the same period in the fourth quarter of last year, the growth rate for the fourth quarter declined further month-on-month compared to the previous three quarters. In terms of core varieties, it is expected that torasemide will benefit from the withdrawal of competitive products and maintain a doubling growth trend; cefoxidione sodium will benefit from the continued expansion of sales volume and further volume; in addition, cefotiam and tigecycline will continue to grow rapidly, while lansoprazole will continue to grow steadily. The integration of the NMS Group is progressing smoothly, and innovative oncology research and development is expected to continue to bear fruit. In the first three quarters of 2018, the company completed a series of tasks such as management team deployment, R&D pipeline sorting, and internal process optimization. Subsequent R&D is expected to be carried out smoothly. We believe that with the NMS Group's world-class kinase R&D platform (including a kinase HIT library composed of more than 90,000 compounds, covering everything from targets to clinical candidates and a series of subsequent research and development processes), a high-quality, high-standard CMC R&D and manufacturing (CDMO) center, and high-quality, qualified non-clinical evaluation capabilities, etc., the future research pipeline is expected to continue to be brilliant, and innovative results have been fruitful. In addition, the value of future innovation is expected to continue to be reflected. Maintain a “Recommended” rating. Maintaining the previous forecast, the company's EPS for 2018-2020 was 0.71 yuan, 0.92 yuan, and 1.16 yuan respectively. Considering that performance is expected to continue to grow, in addition to the fact that most of the products are injectable, the current consistency evaluation has little impact, yet the innovation value of the NMS Group is expected to be reflected one after another, maintaining the “recommended” rating. Risk indicates the risk of drug price reduction; product development is progressing slowly; sales promotion is slower than expected, etc.