Leading domestic RTU companies: Three major business companies specializing in automation, oil and gas services, and smart industries. The traditional main business is industrial-grade RTU in the field of oil and gas extraction. It can be seen as the integration of sensors and local controllers for the Oilfield IoT. In the future, companies in the field of Oilfield IoT have great potential for development. After listing, the company formed the three major businesses of automation, oil and gas services, and smart industries through a series of mergers and acquisitions. Automation business: Benefiting from the increase in the automation rate of domestic oilfields and equipment imports to replace domestic oil and gas wellhead RTU companies account for nearly 50% (mainly CNPC). Recently, the company won the bid for products related to Sinopec's oil and gas production information system with the first place. Oil and gas services: The acquisition of Zetian Shenghai (oilfield drilling measurement) and Sandaxin (oilfield environmental protection) company acquired 100% of Zetian Shenghai's shares (oilfield drilling measurement technology services). Zetian Shenghai promised that the 15-17 year performance would not fall below 2,800, 33, or 37 million. The company acquired 52.4% of Xinjiang's shares of Sandaxin for 129 million yuan (oilfield environmental protection); Sandaxin promised that its performance in 16-17 would not fall below 253 million or 28 million yuan. Smart industry: Entering smart granaries, smart cities, etc., and expanding “smart +” business. Countries piloted smart granaries in Henan and Hunan last year. The company has already won the bid for the COFCO project; 51% of Shou Xinsheng Electronics' shares have gone into the construction of smart granary projects in Henan and other places. It is expected that 6 new provinces will be added to the country for pilot promotion this year, and the company is expected to obtain more orders for smart granaries this year. Acquired 100% of Hangzhou Qingniao Electronics to enter the smart city industry. The business scope of Qingniao Electronics is the development and sale of smart systems, intelligent buildings, smart weak electricity, and intelligent security systems. A fixed increase of 400 million yuan was invested in Hangzhou Smart Industrial Park, and the acquisition of Sandaxin (Oilfield Environmental Protection) Company recently raised a fixed increase of 400 million yuan in capital, with a fixed price increase of 9.28 yuan. The company plans to invest 271 million yuan in Hangzhou Smart Industrial Park and obtain three new 52.4% shares with 129 million yuan. This fixed increase has already been completed. Looking at the company's previous series of acquisitions, we judge that the company will continue to carry out extended mergers and acquisitions in the future. Small market capitalization, high growth, and high quality targets benefit from the smart industry and the Internet of Things; maintain the current market value of recommended companies of about 6 billion yuan. Considering the performance contributions of Zetian Shenghai, Sanda's new performance promises, and smart industry, it is estimated that EPS preparation for 2016-2018 will be 0.19/0.27/0.38 yuan, and PE preparation will be 56/40/28 times higher. The company's performance has the potential to improve; in the future, smart industry and IoT themes will benefit. Risk warning: Oil prices hover around the risk of a downturn in traditional business, and epitaxial development falls short of expectations