Integrated medical merger and acquisition was approved by the Securities Regulatory Commission. Peking University Pharmaceutical received notice from the Securities Regulatory Commission on October 17, 2014 that the company's major asset restructuring of issuing shares to purchase assets and raising matching funds and related transactions was approved unconditionally. This additional offering acquires 100% equity in Integrated Medical, with a transaction value of about 1.4 billion yuan; at the same time, it issues shares to Beijing Zhonghe non-public to raise supporting funds of about 467 million yuan; the additional offering price is 13.29 yuan per share. We expect that after the completion of this additional offering and acquisition, Peking University Pharmaceutical's oncology business line will be greatly expanded, and supporting financing is expected to reduce the company's financial expenses.

All-in-one Healthcare will make a significant contribution to Peking University's pharmaceutical profits and is the overall solution provider of oncology diagnosis and treatment equipment. Integrated Medical is a professional oncology diagnosis and treatment equipment overall solution provider, its core business is mainly "medical equipment R & D, manufacturing and sales" and "medical equipment overall solution". According to the cooperation model between integrated health care and customers, the company's business can be divided into four types: equipment sales model, cooperation sharing model, equipment leasing model and technical service consulting model. In 2013, the revenue of the equipment sales model accounted for 10.12%, the cooperation sharing model 87.6%, and the technical service consulting model 2.24%. The equipment leasing model is a new business cooperation model between the company and two local hospitals in 2014. If after the completion of this acquisition, Integrated Medical makes a significant contribution to the overall profit of Peking University Pharmaceutical, according to the announcement, the revenue of Integrated Medical in 2014 is 243 million yuan, and the net profit is 56.67 million yuan; the net profit from 2013 to 2017 is forecast to be 74.64 million yuan, 93.33 million yuan, 124 million yuan and 149 million yuan respectively, with a projected compound growth rate of 27%.

Give full play to coordination to create a national leading tumor business industry chain layout. Integrated Medical has now formed a branch diagnosis and treatment network covering the whole country, in cooperation with more than 30 hospitals across the country, and in the future with Peking University Medicine, it will achieve full coordination with Peking University Medical Hospital resources and Peking University medical resources. to achieve a perfect layout and extension of the oncology business industry chain. The company has been strategically building the national leading tumor drug / tumor equipment manufacturing-sales / leasing-consulting service-the whole industry chain layout of tumor hospital operation: ① tumor drug manufacturing: Ganoderma lucidum cellular glycopeptide, paronosetron and other four anti-tumor adjuvant drugs, there are more than ten kinds of anti-tumor generic drugs under development, including the antineoplastic drug Compritine disodium phosphate, etc.; ② oncology equipment and services: integrated medical care ③ Cancer products sales: Peking University Medicine has a relatively perfect medicine circulation platform; ④ Cancer Hospital: Peking University Medicine and Peking University Cancer Hospital will jointly set up "Peking University Medical Cancer Hospital Management Co., Ltd.", and take this as a platform to establish China's largest oncology specialist medical network with "Peking University tumor" as the brand.

Rely on the resources of shareholders to create a new generation of medical service leader and maintain the overweight rating. The company relies on the strong medical resources of shareholders Peking University, Peking University founder and Peking University Medical Group to create a new generation of medical service leaders. We maintain EPS0.08 yuan, 0.10,0.13 yuan in 14-16 years, year-on-year growth of-35%, 18%, 27%, corresponding to the forecast price-to-earnings ratio of 245,208,163.If we consider integrated medical mergers and acquisitions, and only in the fourth quarter of 2014, we maintain 14-16 EPS0.09 yuan, 0.21,0.27 yuan, year-on-year growth of-28%, 121%, 31%, corresponding to the forecast price-earnings ratio of 221,100,77 times. Maintain the overweight rating.