Key investment points Recently, we surveyed company executives and exchanged views on the company's strategic business situation. The three-quarter report is growing rapidly. The company's three-quarter report achieved revenue of 501 million yuan, a year-on-year increase of 66.10%, a year-on-year increase of 83.96 million yuan in net profit attributable to the parent company, an increase of 65.35% year-on-year, and net profit of 45.79 million yuan after deducting non-attributable parent company net profit of 45.79 million yuan, an increase of 133.79% over the previous year. Zhongyuan Xiehe was the first company in China to invest in biological resource storage projects. It is currently the only listed company in the Shanghai and Shenzhen markets whose main business is cell engineering and genetic engineering, and is driven by dual core development. The company's business includes stem cell storage, stem cell therapy, tumor cell immunotherapy, genetic testing, beauty care, and elderly care (within the group). The short-term operation is based on cell storage and genetic testing clinical reagent business; in the medium term, development is based on beauty care, anti-aging, and tumor cell immunotherapy, and long-term development is based on Chinese medicine and informatization. The company's short, medium and long-term layout is perfect. Short-term business layout: The cell storage industry currently stores more than 400,000 copies of stem cells. Its 19 cell resource banks cover 2/3 of China, 3/4 of the population (stem cell storage cannot be stored across regions), and have public licenses for national cord blood banks in Tianjin, Zhejiang, and Gansu. In terms of genetic testing, the company has a laboratory in Tianjin. Currently, mRNA, protein testing, Her2, etc. have all been explored. Genetic testing services that have been carried out or are about to be carried out include non-invasive screening, deafness screening, thalassemia testing, etc., and genetic adult testing includes testing of predisposition genes, comprehensive immunity, and tumor marker testing. In the medium term, the company will continue to accumulate products and technologies in fields where there is a lot of room, such as cosmetic anti-aging and tumor immunotherapy. In the long run, the company will use Zhongyuan Pharmaceutical as a platform to focus on developing innovative drugs and genetic drugs. In addition, the company will also launch the Life Bank card, which will provide users with more personalized health and treatment plans in the future. Profit forecast and valuation: The company's main business is precision medicine, and the market space is large, and the company's business layout is relatively complete, including stem cell storage, stem cell treatment, tumor cell immunotherapy, genetic testing, beauty care, and elderly care (within the group). It is a leader with a complete layout of emerging industries, has a certain scarcity, and is worthy of continuous attention. Previously, the company's equity incentive plan had been clarified. The company's consolidated accounting report revenue in 2015 increased by no less than 30% compared to 2014, and earnings per share were not less than 0.30 yuan/share; 2016, the company The consolidated accounting statement's operating income increased by no less than 50% compared to 2015, and earnings per share were not less than 0.80 yuan/share. We expect the company's EPS in 15-17 to be 0.30, 0.80, and 0.93 yuan, corresponding to PE of 195, 72, and 62 times, respectively, covering the first time, and giving it an increase in holdings rating. Risk Warning: Emerging industry regulation policy risks, business development falls short of expectations