Main points of investment

Recently, the company announced its three-quarter report in 2019, the company achieved operating income of 931 million yuan, an increase of 25.63% over the same period last year; the net profit of shareholders belonging to the parent company was 239 million yuan, up 3.42% from the same period last year, deducting the net profit of non-listed company shareholders from 238 million yuan, an increase of 34.19% over the same period last year. The non-growth rate was faster than the net profit growth rate, mainly due to the 53.5 million government subsidy 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 BPS of the company from 2019 to 2021 is 1.99 yuan 2.60.3.28 yuan respectively, and the closing price PE on October 25 is 14 times and 11 times respectively.

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.