Investment highlights: leading companies in the analytical instrument industry. Tianrui Instrument was founded in 1992, starting with research, production and sales of X-ray fluorescence spectrometers. Currently, it is engaged in R&D, production, sales and related technical services of high-end analytical instruments and application software, mainly spectrometers, chromatographs, and mass spectrometers. It is the first analytical instrument company listed on the GEM market in China. The company's products are mainly used in many fields such as environmental protection and safety (air, soil, water pollution testing, etc.), minerals and resources (geology, mining), product inspection, and even human trace element testing. In 2015, the company achieved operating income of 321 million yuan, an increase of 16.13% over the previous year; net profit attributable to the parent company after deduction was 13.39 million yuan, an increase of 6.52% over the previous year. The “Ten Rules of Soil” were introduced to increase market demand for soil monitoring. Over a long period of time, the soil pollution situation in China has been serious, and problems such as the arable soil environment and the industrial and mining soil environment are prominent. According to statistics, the country's total soil excess rate has reached 16.1%, of which the proportion of light, mild, moderate and severe pollution points is 11.2%, 2.3%, 1.5%, and 1.1%, respectively. The introduction of the “Ten Rules of Soil” marks that soil management has become an important field of environmental management in China. Currently, the ability to monitor contaminated soil is low, which is a difficult point in treating and repairing contaminated soil. Market demand for soil monitoring and analysis instruments will gradually open up. Keep up with national development policies and rationally lay out the environmental protection industry. Tianrui Instruments has always invested heavily in technological innovation and research and development, and its core competitiveness based on technological innovation continues to increase. Among them, the Genius XRF handheld fourth-generation X fluorescence analyzer series products independently developed and produced have great technical advantages in the soil pollution monitoring and analysis instrument market. In 2015, the company established the mass spectrometry division, environmental protection division, spectroscopy division, OES division, and acquired Wending Environmental Protection to further lay out the fields of environmental protection management and environmental operation; the company used its own capital to jointly establish the Oriental Tianrui M&A Investment Fund with Oriental Ruide (Shanghai) Investment Management Co., Ltd. and plans to actively deploy in the fields of environmental protection, food safety and life science. Performance forecasts and ratings. The company is expected to achieve net profit attributable to the parent company in 2016 and 2017 to be 8472 million yuan and 112.47 million yuan respectively, corresponding to EPS of 0.18 and 0.24 yuan respectively. The analytical instrument industry will face the opportunity of “Ten Rules of Land” in 2016, and the market size will increase significantly. 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 medical care, the company was given a purchase rating of 70 times PE in 2016, corresponding to the target price of 12.6 yuan. Risk warning. 1. Macroeconomic growth continues to slow, and upstream demand declines. 2. Market competition has intensified the decline in gross margin. 3. Lack or loss of core technical personnel.