Main points of investment

Recently, the company announced its 2019 mid-term report that the company achieved operating income of 619 million yuan, an increase of 36.66% over the same period last year, while the net profit of shareholders belonging to the parent company was 157 million yuan, an increase of 21.33% over the same period last year. The net profit of shareholders of non-listed companies was 157 million yuan, an increase of 52.61% over the same period last year. The faster growth rate of deduction than the growth rate of net profit is mainly due to 28.87 million of government subsidies in 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 it is expected to expand rapidly in the next three years, driving the rapid development of the company. We estimate that the EPS of the company from 2019 to 2021 will be 1.99,2.60,3.28 yuan respectively, corresponding to the closing price PE of 17,13,10 times respectively on August 14.

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.