Investment Highlights Recently, Wandong Medical released its 2020 three-quarter report. During the reporting period, the company achieved operating income of 736 million yuan, an increase of 15.59% over the previous year; realized net profit of 148 million yuan, an increase of 62.51% over the previous year; and realized net profit after deduction of 139 million yuan, an increase of 66.87% over the previous year. Profit forecasts and ratings: The company's product line continues to upgrade, and the proportion of high-end products continues to rise; through relevant investment in online remote reading centers and offline physical video centers, the company's transformation path from equipment manufacturer to service provider is clear and in line with relevant policy guidelines; under the influence of the COVID-19 pandemic, the company's mobile DR and DR product sales have exploded. We have adjusted our profit forecast for the company. We expect the company's EPS for 2020-2022 to be 0.40, 0.43, and 0.51 yuan respectively, and the corresponding PE for October 30, 2020 will be 30X, 28X, and 24X respectively, maintaining the “prudent increase in holdings” rating. Risk warning: There is an uncertain risk of the progress of the epidemic, product sales falling short of expectations, new product development progress being slower than expected, new model expansion falling short of expectations, and internal integration falling short of expectations.