Investment highlights: On August 16, the company released its 2016 semi-annual report. In the first half of 2016, the company achieved total operating income of 1809.359 million yuan, an increase of 24.37% over the same period last year; net profit attributable to shareholders of listed companies was 35.4819 million yuan, an increase of 32.54% over the same period last year; and period expenses of 68.8256 million yuan, an increase of 19.13% over the same period last year. The increase in net profit attributable to shareholders of listed companies compared to the same period last year was mainly an increase in the company's main business revenue and profit. Expand the environmental protection industry and increase performance. In 2015, Tianrui Instruments acquired Suzhou Tianrui Environmental Technology Co., Ltd. and entered the field of environmental protection. In the first half of 2016, Tianrui Instruments operated well and strengthened investment in the field of environmental protection. The company cooperated with Dongying Tiandiyuan Environmental Protection Technology Co., Ltd. and invested in the Shandong Dongying 56 Joint Project Company to get involved in PPP projects in the field of environmental management. In addition, the company also invested 15.3 million yuan, accounting for 51% of the investment ratio, and Mr. Li Jinxian jointly funded the establishment of Guizhou Tianrui Environmental Technology Co., Ltd. Tianrui Environmental merged with the parent company in May 2015. In the first half of 2016, its operating income and net profit increased by 28.063 million yuan and 3,923,400 yuan respectively over the same period last year, which was an important factor in the parent company's profit growth. Revenue growth in the traditional XRF business. In the first half of 2016, Tianrui Instrument's traditional XRF business development closely followed the pace of the country and expanded application fields. Among them, wavelength dispersive XRF revenue was 5.98 million yuan, up 17.42% year on year; revenue from other products was 59.71 million yuan, up 73.34% year on year; and energy dispersive XRF revenue was 81.36 million yuan, down 3.89% year on year. Tianrui Instrument continues to grow its main business through major products such as the wavelength dispersive XRF series. Adhere to technological innovation and deepen the analytical instrument market. In the first half of 2016, the company's R&D work progressed in an orderly manner. The company and its subsidiaries obtained a total of 11 newly authorized patents, including 10 invention patents and 1 utility model. The smooth progress of R&D work has ensured the continuous and steady growth of the company's main business revenue and profit. The main business revenue for the first half of 2016 was 179.5357 million yuan, accounting for 99.23% of operating income. Profit forecasting and valuation. The company is expected to achieve net profit attributable to the parent company in 2016 and 2017 to be 8472 and 112.47 million yuan respectively, corresponding to EPS of 0.18 and 0.24 yuan respectively. It is expected that Tianrui's environmental performance promises will be fulfilled, and the analytical instrument industry will encounter the “Ten Rules of Land” opportunity in 2016. Comparing the valuation situation of companies in the same industry and the application of the company's products in emerging fields such as soil monitoring and medicine, the company is 85 times PE in 2016, corresponding to the target price of 15.3 yuan, giving the company a purchase rating of 15.3 yuan. Risk warning. 1. Tianrui Environmental's performance promises in '16 and 17 fell short of expectations. 2. In the field of soil and VOCs, the growth rate of demand for the company's related products fell short of expectations due to slow policy advancement. 3. Insufficient or lost core technical personnel. 4. Competition in the industry has intensified, and gross margin has declined.