This Friday (February 3), there is a gem listed company "Zhen Lan instrument" inquiry.

Zhenlan Instruments (301303): the company's main business is the R & D, manufacturing and sales of gas metering instruments and supporting products. Now it has formed a whole industry chain business model of mold development and production, parts manufacturing, software development, intelligent module research and production, and automatic assembly of gas metering instruments. From 2019 to 2021, the company achieved operating income of 631 million yuan / 850 million yuan / 1.063 billion yuan, YOY of 40.87%, 34.61%, 25.09%, 33.36%, respectively, and realized net profit of 151 million yuan / 182 million yuan / 217 million yuan, YOY of 46.31%, 20.76%, 19.25%, and 28.20%, respectively. During the latest reporting period, 2022Q3 achieved an operating income of 839 million yuan, an increase of 3.33% over the same period last year, and a net profit of 132 million yuan, down 18.22% from the same period last year. According to the preliminary forecast, the company's non-return net profit will be 173 million yuan to 191 million yuan in 2022, with a change of-5% to 5% compared with the same period last year.

Investment highlights: 1. The company has established a relatively stable cooperative relationship with upstream and downstream by means of equity investment, and has gradually become one of the leading enterprises in the field of gas meters in China. On the purchasing side, the company established Zhongke Zhicheng with Chengdu Zhongke Vishi Instruments Co., Ltd., a subsidiary of the Chinese Academy of Sciences holding Co., Ltd., and held a 25% stake in Zhongke Zhicheng, which became one of the company's motor valve suppliers. On the sales side, the company cooperated with China Gas to set up Hebei Huatong and held a 33.34% stake in Hebei Huatong. During the reporting period, the company mainly sold gas meter products to China Gas through Hebei Huatong. The deepening of the cooperative relationship will help the company to seize the market and stabilize the sales channel; up to now, the company has become the five largest domestic gas group suppliers and supplies membrane gas meters to a number of smart gas meter enterprises. At the same time, according to the company's prospectus, the company's sales of gas meter products in 2021 was 6.3542 million, ranking second among the major domestic gas meter listed companies; in the future, with the gradual adjustment of China's energy structure, natural gas consumption will increase steadily, and the company, as a major domestic gas meter supplier, is expected to benefit from it. 2. The company's forward-looking layout of ultrasonic gas meters has made some phased progress. Ultrasonic metering technology is one of the future technological development directions of the gas meter industry, which mainly adopts intelligent and all-electronic structure, which has the advantages of wide measuring range, small volume, wear resistance without mechanical moving parts, good repeatability, low pressure loss, high safety and so on. In May 2020, the company signed an agreement with Shanghai University to jointly carry out the "Development of Ultrasonic Gas Meter" project; as of the latest, the company has obtained the type evaluation certificate of the ultrasonic metering instrument using Panasonic module of Japan. and the company's independent module ultrasonic metering instruments have begun batch trial production. With the gradual improvement of the rules of ultrasonic gas meters, the company's products will be introduced to the market in time; at the same time, after the base construction project raised this time reaches production, it is expected to add 500000 ultrasonic gas meters, which will help the company to form a corresponding leading advantage in technology and production capacity.

Comparison with listed companies in the same industry: the company has been deeply engaged in the field of gas metering instruments for a long time; considering the similarity of business and products, we select Golden Card Intelligence, Weixing Intelligence, Vanguard Electronics, and Qinchuan Wulan as comparable listed companies of Zhenlan instrument. From the above comparable companies, the average revenue in 2021 is 1.057 billion yuan, the comparable PE-TTM (excluding Qinchuan Wulian) is 45.11X, and the sales gross profit margin is 33.61%. Relatively speaking, the company's revenue scale and gross profit margin are higher than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.