1. Event Overview The company released its 2016 semi-annual report on the evening of August 17. In the first half of the year, it achieved revenue of 180 million yuan, an increase of 24.37% over the previous year; net profit attributable to shareholders of listed companies was 36.48 million yuan, an increase of 32.54% over the previous year. 1. 2. Analyze and judge that the traditional main business is recovering Tianrui's environment and increasing performance, and performance has maintained steady growth. In the first half of this year, the company's net profit increased by 36.48 million yuan year on year. Among them, Tianrui Environmental's net profit increased by 3.92 million. The performance of the traditional main business recovered, and net profit rebounded. Net cash flow from operating activities decreased by 164% year-on-year, mainly due to the large upfront investment of the subsidiary Tianrui Environmental Engineering Project and the long completion cycle. Gross margin decreased 4.82% year over year due to declining gross margin in the energy dispersive XRF business. The company's overall performance has maintained steady growth, and the business situation is stable. The “Ten Rules of Soil” spawned demand for soil monitoring, and the soil monitoring business became an important growth point in the future. The “Ten Rules of Soil” stipulate that by the end of 2017, the establishment of national soil environmental quality control monitoring points will be completed, and a national soil environmental quality monitoring network will be established. By the end of 2020, achieve full coverage of soil environmental quality monitoring sites in all counties (cities, districts). As of December 2015, China had a total of 31,367 national control points for soil environmental quality monitoring, covering 90% of counties (cities and districts). The agricultural sector plans to set up 152,000 national control points for safety inspection of production areas. Governance has spawned demand for monitoring data. The increase in monitoring sites and the construction of monitoring networks are beneficial to the development of the company's heavy metals monitoring business in soil. MALDI-TOF-MS has entered the small-batch trial production stage, and clinical testing market space is expected to open up. 2. The MALDI-TOF-MS (matrix-assisted laser analysis-time-of-flight mass spectrometer) independently developed by the company has completed second-generation prototype development and has now entered the small-batch trial production stage. The MALDI-TOF-MS mass spectrometer can be widely used in the rapid monitoring of microorganisms such as clinical microorganisms in hospitals, food industry microorganisms, animal and plant quarantine microorganisms, etc., and has the advantages of high speed, simple operation and good stability. The instrument has broad market prospects in the field of clinical testing in hospitals. With the mass production of the company's MALDI-TOF-MS mass spectrometer, hospital clinical testing market space is expected to open up. The company currently has 728 million dollars in cash on its books, and sufficient cash flow provides strong financial support for the company's subsequent external mergers and acquisitions. 3. Profit Forecast and Investment Suggestion 4. The company's EPS for 16-18 is expected to be 0.15 yuan, 0.17 yuan, and 0.20 yuan; the corresponding PE for 16-18 will be 82 times, 69 times, and 59 times, maintaining a “highly recommended” investment rating. 5. 4. Risk Warning 6. Mass spectrometer marketing falls short of expectations; risk of decline in traditional business.