Description of the incident: The company issued an announcement on the evening of April 9, 2019, and signed a “Strategic Cooperation Agreement” with China Unicom Sichuan Branch. The two sides will carry out in-depth cooperation in medical-related fields such as the construction of new, upgraded, and renovated projects related to informatization and related applications in medical institutions and health care authorities in Sichuan Province. It is expected to transform into a platform service provider. According to the details of the cooperation disclosed in the announcement, the company will collaborate with China Unicom Sichuan Branch in two areas: 1) develop in-hospital information systems for large medical institutions in Sichuan (mainly hospitals above the top three); 2) use the advantages of both parties to collaborate to develop the regional medical information platform in the region, using the “see a doctor first, pay later” project as an opportunity to promote regional population health big data, regional health informatization platforms, and telemedicine information platforms. We believe that as a high-quality enterprise in the field of hospital informatization, the company will rely on the leading technical advantages of its “Xinjunzi No. 1” system, be deeply tied to Unicom's Sichuan branch, and achieve positive technology+channel feedback based on its unique channel advantages within Sichuan Province. At the same time, after the completion of the regional medical information platform project, the company, as the only medical software provider for the project, is expected to expand vertically to platform service providers. The company will fully enjoy the dividends of industry development. The increase in the aging rate, the uneven distribution of medical resources, and the limited growth in health insurance fund revenue will cause enormous financial pressure. We expect that there will be a phenomenon of underpayment until 2027, so there is no time to delay medical fee control. China is currently in the CIS (clinical informatization) transformation stage. At that time, it will bring a peak in the upgrading of electronic medical records. It is estimated that in 2022, its market space will exceed 10 billion yuan, and the company, as a high-quality electronic medical record manufacturer, will fully enjoy the market dividends brought by the upgrade of electronic medical records. We can also obtain corroboration from the company's quarterly report forecast data. According to data disclosed by the company, the company's net profit for the first quarter of 2019 was 6 to 6.9 million yuan, with a year-on-year growth rate of 99.12%-128.98%, and the growth trend is strong. Investment recommendations We expect the company's net profit to reach 0.40, 0.81, and 112 million yuan respectively in 2018-2020, with EPS of 0.48, 0.96, and 1.33 yuan respectively, and corresponding PE of 137.3, 68.5, and 49.5 times respectively, covering the “increased holdings” rating for the first time. Risk warning: Cooperation falls short of expectations; risk of shareholders' holdings reduction; promotion of Xinjunji-1 falls short of expectations.