Recently, the company released its 2018 annual report, the company achieved operating income of 1.0278792 billion yuan, an increase of 12.26% over the same period last year, while the net profit of shareholders belonging to the parent company was 215.6062 million yuan, down 6.11% from the same period last year. Excluding the impairment of 57.3508 million yuan in Imdo asset group and 28.264 million yuan in non-performing debt projects of United Investment Bank, the net profit belonging to shareholders of listed companies in the current period is 301 million yuan, an increase of 31.17% 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 2019 to 2021 to 1.99,2.60,3.28 yuan respectively, corresponding to the closing price PE of 18,14,11 times on March 15.

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.