Earning forecast, valuation, and rating. Specializing in blood products, the company has great elasticity in results and proper product mix, in line with long-term development trend of the industry. We predict the company’s 2011/12E/13E/14E EPS at Rmb0.75/0.83/1.12/1.34. In reference to 35X 2011 PE, we apply the counter target price of Rmb26.56 per share. Combined with DCF valuation of Rmb24.73, we reiterate our predictions on the target price of Rmb26.56 per share. Initiate our coverage with OVERWEIGHT rating.