Event: The company released its 2019 annual report and 2020 quarterly report. In 2019, the company achieved revenue of 982 million yuan, an increase of 2.92% over the previous year, net profit of 169 million yuan, an increase of 10.14% over the previous year, and net profit after deduction of 148 million yuan, an increase of 8.19% over the previous year. On a quarterly basis, 2019Q4 achieved revenue of 345 million yuan, an increase of 3.15% over the previous year, net profit of 777.8874 million yuan, an increase of 19.80% over the previous year, and net profit of 63.9588 million yuan after deduction, an increase of 15.37% over the previous year. In the first quarter of 2020, the company achieved revenue of 250 million yuan, an increase of 54.53% over the previous year, net profit of 51 million yuan, an increase of 787.21% over the previous year, and net profit of 48 million yuan after deducting non-return to the mother, an increase of 2584.66% over the previous year. Due to the impact of the epidemic, mobile DR sales of the company's related products increased, resulting in a significant increase in net profit in 2020Q1. DR is the company's first pillar product line. By product, which accounts for more than 50% of sales, medical device manufacturing achieved revenue of 915 million yuan in 2019, an increase of 3.61% over the previous year, and gross margin of 46.29%, an increase of 5.08pp over the previous year. DR is the company's first pillar product line, accounting for more than 50% of sales. The company sold more than 1,700 sets of DR products throughout the year, ranking first in the domestic market in terms of sales volume. MRI is the company's second pillar product line, accounting for more than 30% of sales. The company's magnetic resonance product sales volume and sales volume have all increased steadily, with an increase of around 15%. Both sales volume and sales volume rank among the top two domestic brands. Driven positively by the cancellation of the license, the DSA overall market growth rate is obvious. The company promptly launched the DSA overall solution, providing comprehensive support such as equipment, capital, operating room construction, personnel training, counterpart hospital cooperation, expert guidance, and department operation services, and actively promoted the construction of interventional treatment centers in county-level hospitals. DSA's sales volume and revenue have increased significantly. CT is the company's newly listed product. It uses minimally invasive CT intervention with clinical practice as an entry point to actively cultivate the market and achieve installed applications in tertiary hospitals such as the First Affiliated Hospital of Sun Yat-sen University and the Fourth Hospital of Wuhan. In 2019, the company invested 94 million yuan in R&D, an increase of 34.80% over the previous year, accounting for 9.54% of revenue. Focus on investing in TURBOTOM 3200X X-ray computed tomography equipment and 3.0T superconducting magnetic resonance imaging systems to raise the remuneration level of key R&D personnel. In 2019, the company empowered DR products with AI diagnostic technologies such as arthritis, pneumonia, and healthy lungs, built the “ONE Shadow” AI diagnostic technology platform, and launched the New Oriental 1000N series of intelligent DR products, which significantly improved the image quality of DR in clinical imaging tests. Maintaining the “buy” rating company as the leading enterprise in the medical X-ray machine industry in China, it also has high expertise in the medical imaging industry. We expect the company's net profit in 20/21/22 to be 2.58, 3.24, and 379 million yuan, respectively, and EPS of 0.48, 0.60, and 0.70 yuan respectively. The current stock price corresponds to PE 31, 24, and 21 times, maintaining the “buy” rating. Risk warning: High-end product development risks, declining profit margins due to intense market competition, operating risks of third-party imaging centers, failure of AI-assisted diagnosis to advance beyond expectations, etc.