Matters: 1. The company released its 2019 annual report: Annual revenue of 982 million yuan (+2.92%), attributable net profit of 169 million yuan (+10.14%), and net profit attributable after deductions was 148 million yuan (+8.19%), slightly lower than previous expectations. The company announced the annual dividend plan: a cash dividend of 0.50 yuan (tax included) is distributed for every 10 shares. 2. The company released its 2020 quarterly report: in the first quarter, it achieved revenue of 250 million yuan (+54.53%), realized imputed net profit of 507.0.1 million yuan (+787.21%), and net profit attributable after deduction was 477576 million yuan (+2584.66%). Ping An's view: 2019: DR demand was basically the same as last year, demand for DSA and other products released, and the overall performance of companies in 2019 was stable. Sales of the core product DR series were more than 1,700 units, which is basically the same as in 2018. In 2019, the company's DR product supply chain adjustment was completed, and product gross margin also increased to a large extent; the MRI series grew steadily, and sales volume and sales volume both increased by around 15%. With subsequent companies' promotion of new 1.48T superconducting products, MRI growth is expected to accelerate; DSA products benefited from the configuration certificate relaxation policy issued in the second half of 2018, and terminal demand was significantly released, and it is estimated that 2019 will more than double. Overall, medical equipment achieved annual revenue of 915 million yuan (+3.61%). Due to the increase in the gross margin of DR products and the increase in the share of high-margin products, the overall gross margin of medical device equipment reached 46.29% (+5.08PP). The annual sales expense ratio was 14.80% (-0.81PP), the management expense ratio was 7.16% (-0.13PP), and the R&D expense ratio was 7.14% (+0.66PP). 2020Q1: The pandemic has stimulated demand for mobile DR and greatly increased company profit margins During the COVID-19 pandemic, demand for DR as an essential product for lung imaging tests has increased dramatically, and mobile DR, which can be freely used in isolated areas such as ICUs and infectious disease wards, has been widely used. The company sold about 420 ordinary DR units and 380 mobile DR units in 2020Q1. The number of mobile DRs is already more than double the sales volume for the full year of 2019. The added value of mobile DR is high, and the gross margin is relatively abundant. In addition, MRI products with low gross margin were rarely sold during the pandemic. The company's overall gross margin reached 58.23% (+17.79PP) during the reporting period, and the profit level increased dramatically. The 2020Q2 domestic epidemic has gradually subsided, but the company's DR and mobile DR still have a large number of unfulfilled orders. Furthermore, the epidemic outside Shanghai is not over yet, and the company has also received quite a few overseas orders from Europe, so the production of the DR series is still the company's Q2 focus. Furthermore, the supply of MR, CT, etc. in the domestic market is also recovering. Maintain a “recommended” rating: The company is a leading imaging diagnosis company in China and has a diverse product line. Benefiting from the relaxed configuration policy, the company's DSA and other products grew at an accelerated pace. The COVID-19 pandemic has stimulated a large demand for DR and mobile DR, increasing the company's DR line sales scale and profitability. Considering the impact of the epidemic, the company's EPS forecast for 2020 to 2022 was adjusted to 0.49, 0.45, and 0.50 yuan (previously 0.45 and 0.52 yuan in 2020-2021) to maintain the “recommended” rating. Risk warning: 1) Product price reduction risk: Product competition is intense. If the price drop exceeds expectations, it may weaken the company's profitability; 2) The risk that the bidding and installation work progress does not meet expectations: if the bidding and installation work progress of government procurement projects is delayed, it may affect the company's current performance; 3) New product promotion falls short of expectations risk: If the company's new product promotion does not meet expectations, it may affect the company's performance.