Note: The shipment volume of Sanchuan smart smart water meters has exceeded one million, indicating that IoT water meters have entered the large-scale deployment period. Comment: The company has doubled its smart water meter shipments. Maintaining the “buy” rating. Driven by various policies, Mikawa Smart's IoT water meter shipments are expected to exceed 1.5 million units this year, growing rapidly. This segment has already begun to move from the policy period to the industrial implementation period. The country's 350 million water meters have brought huge room for imagination to intelligent upgrading and transformation. Mikawa is currently the leader in this field. We expect the company's net profit for 2019-2021 to be 1.3/1.8/220 million yuan, respectively, corresponding to a price-earnings ratio of 38/28/22 times, and maintain a “buy” rating. Risk warning: Risk of smart water meter promotion falling short of expectations; risk of policy implementation falling short of expectations