Smart instrumentation will be the future of the instrument industry

Industry strategy: We believe that the freezing of the NB-IoT protocol is expected to promote the development of the smart watch industry, and the future application prospects in the field of Internet of Things are broad, and the smart watch industry is expected to usher in a period of accelerated growth. We believe that companies with competitive strength in the industry will gradually explore the business model from pure equipment sales to 'equipment + operation'. In contrast, we are particularly optimistic about the water meters in the four meters. From the perspective of the increase in penetration rate or the imagination of the business model, the development potential of smart water meters is greater.　　Recommended combination: We focus on recommending companies that have competitive advantages in the smart water meter industry, including Sanchuan Wisdom, a leading company in the domestic water meter industry, and Xintian Technology, which covers the entire smart meter industry. In addition, other recommended targets include Golden Card shares, a leader in the domestic civil gas meter industry, and Huizhong shares, a leader in the domestic ultrasonic flow measurement industry.　　Industry viewpoint　　NB-IoT technology is expected to trigger industry changes. Traditional smart meters have the following main problems: IC card meters consume a lot of power and frequent hardware maintenance, high cost of optical direct reading wiring, high cost of wireless remote transmission equipment, and high requirements for the application environment. The promotion of NB-IoT technology will effectively solve the above problems, and the reduction of chip cost will help the rapid promotion of products, and the industry is expected to usher in an acceleration period.　　Smart water meter is the sub-industry with the most development potential. At present, the penetration rate of smart water meters is still only about 15%, and driven by the policy of one household, one meter transformation and the goal of smart water network construction, smart water meters will be the first choice. Therefore, we believe that the growth of the smart water meter industry is relatively certain, and related companies will face a large downstream market space in the future, and the industry prospects are promising.　　 The implementation of smart water meters is the basic link to realize smart water affairs, and the market space for smart water affairs transformation can reach hundreds of billions. In recent years, the country has begun to vigorously advocate the construction of smart cities and fully realize the construction goals of smart water affairs; at the same time, the strategic cooperation between my country's water meter industry and the information technology industry is rapidly adv The management and profitability of water enterprises. According to the national average annual water supply of 600 billion tons, the average water supply price is 2 yuan/ton, and the transformation of smart water can reduce the production-sales gap by about 10%. According to preliminary estimates, the market space for smart water transformation can reach 120 billion yuan.　　 The development of the smart meter industry will further build my country's energy Internet of Things system. At present, my country's smart gas meter industry is ushering in an expansion period of market demand, and smart meters will continue to increase the coverage rate while also ushering in a broad replacement demand. At present, the natural gas 'Twelfth Five-Year' plan has been fully implemented, and the country is striving to achieve a natural gas supply capacity of 420 billion cubic meters by 2020, which will further promote the development of the smart gas meter industry. And the popularization of smart meters that began in 2010 will also make smart meters enter the replacement cycle. It is estimated that between 2016 and 2020, China's smart meter installations will grow at an average rate of 5.75%, and the market size will expand by 3.14%. Therefore, we believe that the rapid development of the smart meter industry will further accelerate the construction of my country's energy Internet of Things system