Key investment points The gas meter product line is rich, and upstream and downstream collaborations welcome a high growth rate: the company's products are diverse, overall profitability is strong, and the growth rate of revenue and net profit is significantly faster than in the same industry. In 2016, the company's revenue and net profit to mother increased by 44.66% and 47.15%, respectively, at a high rate of growth. China Gas is the company's strategic investor and third largest shareholder. In recent years, China Gas's expansion has accelerated, and a large number of products have been purchased from the company. The synergy effect is becoming more and more obvious, and the company will further benefit in the future. Follow the trend and introduce new developments, seize the opportunity, and the market is broad: China is in the transition stage from traditional membrane gas meters to smart gas meters, and smart gas meters will dominate the mainstream in the future. Combining intelligent gas meters, remote reading and control with the Internet of Things and the Internet of Energy is a future trend. In the future, the company will adapt to the trend, further develop its competitive advantage in the industry, continue to focus on IC card smart gas meters, promote remote gas meters and ultrasonic meters, and adjust its future development direction. It is estimated that there is 40 billion yuan of market space for gas meters to be developed. The domestic gas meter market is expected to reach 51.6 million units in 2017, of which IC card smart gas meters account for 60%, or 30.96 million units. With the help of the listing, the goal is clear: the capital raised from the listing will be used to establish production bases and R&D centers to solve production capacity problems; the company will continue its major customer strategy and maintain the development momentum. Profit forecast: We expect the company's net profit for 2017-19 to be 74 million, 90 million and 103 million, respectively, EPS of 0.84, 1.03 billion, 1.19, and corresponding PE of 70.47, 58.07 and 50.66, respectively, covered for the first time, and given an increase rating. Risk warning: 1. Market competition increases risk; 2. Fund-raising projects add additional production capacity to absorb risks