Investment highlights: On June 7, the company issued a progress announcement on increasing the company's shareholders' holdings of the company's shares. From February 26 to June 7, 2016, the company's shareholder, Mr. Wang Heping, increased his holdings of the company's shares by 8.03 million shares through a trust plan. The average cost was 25 yuan, accounting for 1.22% of the company's total share capital. Comment: The main products are rich, and the market share is high: main assets (holding 100%), unknown biomedicine, the main type of mouse nerve growth factor, and the second largest market share in China. As channels expand and indications increase, it is expected to regain first place; Sun Company (60%), Tianjin's unknown recombinant human interferon, Anfulong, is expected to increase its original market share under the promotion of a new hierarchical sales network; participating company (26.91%) Beijing Kexing Biotech's main products include hepatitis A inactivated vaccine, hepatitis A and B vaccine, and pandemic influenza (pandemic influenza vaccine) Avian influenza for humans vaccine), influenza A (H1N1) virus lytic vaccine, and the only domestically produced influenza vaccine that does not contain preservatives (thiomersal), the world's first new type of preventive biological product, EV71 vaccine. New products are on the market, and there are plenty of research projects: on the afternoon of June 8, the ribbon-cutting ceremony for the hand, foot and mouth disease vaccine produced by the participating company Beijing Kexing was held at the Changping New Vaccine Industrial Base, and official sales began; after the company's product tiger pain relief peptide is clinically marketed in the next few years, it is expected to become an analgesic alternative to morphine; there are plenty of other research projects, such as pneumococcal vaccine, influenza B vaccine, stem cell factors, tarantula cancer suppressor peptides, Huwen pancreatic peptides, and fibrogenic growth factor 9, SOX9 growth inhibitors, etc. period. Expectations for external mergers and acquisitions are strong: Peking University's Weiming Group also has a number of biomedical companies. Weiming Pharmaceutical is its only biomedical integration platform, and expectations for future asset injection are strong; the company has set up a special merger and acquisition fund to acquire Kexing Holdings; and an industrial merger and acquisition fund has been set up to integrate high-quality pharmaceutical assets. The increase in shareholders' holdings shows confidence. On February 29, 2016, shareholder Mr. Wang Heping promised: Starting from February 26, 2016, it is planned to increase the company's stock holdings through the Shenzhen Stock Exchange trading system within the next 6 months. As of June 7, the cumulative number will not exceed 10 million shares. As of June 7, it has increased its holdings by 8.03 million shares, showing confidence in the shareholders' holdings. Maintain a “buy” rating. We are optimistic that the company has the dual main business of “Wanchang headquarters+unknown pharmaceuticals”, and has a solid layout in the field of biological products, and is full of momentum for future expansion of new products. It is estimated that the 2016-2018 EPS will be 0.62 yuan, 0.75 yuan, and 0.92 yuan, respectively. Referring to the valuation situation of comparable companies, 52X PE was given in 2016, corresponding to the target price of 32 yuan. Maintain a “buy” rating. Uncertainties: risk of new product development and promotion, progress of Kexon's privatization, extension progress.