Guide to this report: The company's performance for the first three quarters was in line with expectations. It continued to grow steadily during the pandemic, continued to increase its market share, accelerate the construction of a high-consumption platform, and maintain an increase rating. Key investment points: The performance is in line with expectations, and the rating for increasing holdings is maintained. The company achieved revenue of 1,110 billion yuan in the first three quarters, up 27.54% year on year; net profit after deducting non-return to mother of 386 million yuan, up 22.43% year on year; net operating cash flow of 279 million yuan, up 36.22% year on year. Revenue and profit growth in the first three quarters were higher than H1. Business continued to recover in Q3, and performance was in line with expectations. Maintain the 2020-2022 forecast EPS1.45/1.84/2.31 yuan, and maintain the target price of 119.60 yuan, corresponding to PE65X in 2021, and maintain an increase in holdings rating. Various businesses continue to grow steadily. By business, trauma income is expected to grow at 20-25%, spinal revenue by 40-50%, minimally invasive surgery by 15-20%, and joint revenue by 50-60%. During the epidemic, the company stepped up its online academic promotion efforts. Among them, the spine business continued to gain strength after the branch operation, and the joint business also grew markedly, and the overall performance was outstanding. Continuously increase the share of the industry. The orthopedic industry in China is highly fragmented, with a leading share of only about 5%. In the first three quarters, against the backdrop of a year-on-year decline in the number of clinical orthopedic surgeries and high financial pressure on dealers, the company still achieved a year-on-year revenue growth rate of 27.54%, further seizing new dealers, highlighting the company's operating strength, and verifying that market share is being concentrated at an accelerated pace. Build a high-consumption platform-type faucet. The company is based on the orthopedic trauma business, and the spine business continues to grow, and is actively expanding high-value medical consumables businesses such as joints, dentistry, minimally invasive surgery, neurosurgery and sports medicine. Recently, ceramic linings have been approved, and the implant business is developing smoothly. It is planned to raise no more than 1 billion yuan in additional capital for orthopedic consumables production line expansion, dental implant production line construction, etc., which is expected to accelerate the construction of a high-value consumables platform and continue to maintain steady growth. Risk warning: The price reduction in product tenders exceeded expectations, and the results of new product expansion fell short of expectations.