Investment highlights: Event: On December 18, 2015, Guangdong Shunde Zhongyuan Xiehe Gene Technology Co., Ltd., a wholly-owned subsidiary of Zhongyuan Xiehe Gene Technology Co., Ltd., a holding subsidiary of the company, obtained the “Medical Institution Practice License” issued by the Health and Family Planning Bureau of Shunde District of Foshan City, which can specialize in clinical testing programs such as medical laboratory medicine: clinical cell and molecular genetics. It is valid from December 18, 2015 to December 17, 2020. The company's subsidiaries will provide medical testing services with complete projects and reliable results through a professional operation model, further promoting the development of the company's genetic business. Comment: This is the company's second acquisition of a Guangdong Shunde license after the Tianjin Gene license. In the future, the company will seek to deploy in East China, North China, Central China, and South China to achieve nationwide coverage. We continue to be optimistic about the company's cell-genetic two-wheel drive logic, and believe that at this point in time, it is still worth recommending. Summary of reasons for recommendation: (1) From the perspective of the market value of precision medicine, there are large investment opportunities. As of December 22, 2015, the company's market capitalization of 23.8 billion dollars did not match its leading position. Similar companies, Anke Biotech, 19.1 billion, Xinri Hengli, 18.3 billion, and Nanjing's new 126.9 billion. (2) In addition to the main business of stem cells with thick and thin hair, the company also has the longest precision medicine industry chain: covering genetic testing equipment, reagents - testing, screening - cell therapy -- big data, relying on its own original stem cell business, Origen, Beike Biology, and Collison, respectively. The company's short-term operation is based on stem cell storage business and medical test reagent business, and in the medium term, it develops cosmetics, beauty and health products business and cell formulation business. The company is committed to opening up separate links in the industrial chain and building a life industry ecosystem. Stem cells owned by the company are a scarce resource base, and the company is actively expanding through mergers and acquisitions funds. Through this, we will expand from stem cells to immune cells and connect storage, testing, cell therapy, pharmaceuticals, and markets (in the future, the use of Internet+ thinking will not be ruled out, and online and offline promotion will not be ruled out). (3) At the industry level, precision medicine is on the rise. China is in the process of formulating a “precision medicine” strategic plan aimed at achieving accurate disease classification and diagnosis and formulating personalized prevention and treatment plans. BGI disclosed its prospectus on the evening of December 18, 2015, which is expected to ignite investment enthusiasm in the industry. Give it a “buy” rating, and the target price is 80 yuan. The 2015-2017 EPS is expected to be 0.30 yuan, 0.55 yuan, and 1.04 yuan, which is optimistic about the company's strategic layout in the field of cells and genes, and more optimistic about the progress of the company's M&A fund after the establishment of the company's M&A fund. Since we are optimistic that the hot topics of precision medicine will continue to be interpreted, the dynamic PE of comparable companies in 2016 is about 100 times higher. Due to the company's leading position and strong extension expectations, the company is given a certain valuation premium, with a target price of 80 yuan. Compared with PE of 146X in 2016, it is given a “buy” rating. Also, with deterministic factors. (1) Stem cell storage competition in various regions; (2) epitaxial progress.