Incident The Company announced its 2019 three-quarter report. In 2019Q1-3, the company achieved revenue of 193 million yuan, a year-on-year increase of 21.9%, and net profit of 54 million yuan, a 21.07% year-on-year increase, in line with expectations. (1) Smooth expansion of new products. The company's products are mainly pressure testing equipment. At the same time, the company has continuously increased R&D investment to reserve new products over the years. In 2018, the company's R&D investment accounted for 19.3% of revenue. Over the past five years, the average ratio of the company's R&D investment in revenue was 12.59%, and the compound growth rate of R&D investment was 27.55%. After the company became the leader in pressure testing equipment in China, it had a good accumulation in terms of both technical reserves and customer channels. Starting in 2018, the company's new temperature testing equipment began to gain strength. As of 2018, the company's temperature testing equipment products were progressing smoothly until the first three quarters of 2019. (2) The company's “growth” logic has been gradually verified, and growth is excellent. The company's pressure testing equipment is exported to developed countries such as Europe and America, and has maintained a high gross profit margin. Moreover, some large European and American enterprises have become customers of the company, and the company's technical level in the field of testing equipment has been recognized. Compared with leading foreign-funded testing equipment, the company is currently small, but the company's “growth” logic is gradually being verified: on the one hand, the company can maintain a compound growth of 19% for more than ten years under the premise of focusing on a single product. The face price of some highly competitive main products is 10% higher than that of international competition. 90% of the company's export products are sold to industrially developed regions such as the US, Europe, and Japan, and have been recognized one after another by Boeing, Pfizer, Bayer, Germany's BASF, Mercedes-Benz, BMW, France Electric Power, Heineken, etc., the main reason is whether it is domestic or not. Outside, they are constantly preempting Leading foreign companies are in the market. We believe that the logic of the company's ability to carry out domestic substitution has been verified; on the other hand, there are many types of equipment for leading overseas companies, so if the company wants to “grow”, it is an essential part. The company's new temperature testing equipment is progressing smoothly, and the company's ability to expand the range of products is gradually being verified. We believe that as far as technology is concerned, companies with high technical reuse of different types of testing equipment have high technical accumulation. As far as customer channels are concerned, the company's brand has been recognized by customers, and comprehensive technology reuse , channel reuse, and the smooth development of the company's new products. We believe that the company has the ability to expand in multiple product categories. Overall, we believe that as a leading domestic testing equipment company, the company has strong growth potential. (3) Investment recommendations: The company's revenue for 2019-2021 is expected to be 297.33, 367.48, and 444.24 million yuan, up 23.63%, 23.59% and 20.89% year on year, and net profit of 90.85, 111.38, and 133.51 million yuan in 2019-2021, up 22.76%, 22.60%, 19.87% year on year, corresponding to PE 26.5, 21.68, and 18.05 times, maintaining the “buy” rating.