The company is one of the professional suppliers and service providers in China's coal equipment manufacturing industry. The company's main business is R&D, manufacturing, sales and service of coal machinery such as support equipment, safety drilling rigs, tunneling equipment and transportation machinery. The company is the deputy director unit of the Coal Mine Support Professional Committee of the China Coal Industry Association and a member unit of the Jingxiang Equipment Branch of the Technical Committee for Standardization of Special Equipment for Coal Mining in the Coal Industry. The company has a total of 82 patents, including 4 invention patents. The company's technology investment is high, and the proportion of sales revenue invested has been higher than 6% for several years; in terms of management, the company effectively combines two management systems, ERP and PLM, and is in an advantageous position in the field of coal machinery. The company is in a leading position in the support equipment market and is expected to maintain steady growth. Support tools are the company's leading products. The support tools produced by the company include anchor rod drilling rigs, anchor rod drills, and supporting equipment, which can provide a complete set of equipment and services for anchor rod support construction in coal mines to meet the needs of various construction environments. The company's corresponding revenue from support equipment accounted for 60% of main revenue in 2011, and the corresponding gross margin was as high as 67%. The company's support equipment market share accounts for more than 30% of the country. With the steady progress of coal mining in China, the market size of support equipment is expected to reach 700 million yuan in 2012 and 1.2 billion yuan in 2015. If the company's market share remains stable, the company's corresponding products will grow steadily as the overall market size increases. The fully cast central groove produced by the company is facing a market explosion opportunity. The fully cast unwelded center groove produced by the company uses a self-developed wear-resistant alloy, which reduces energy consumption, improves overall mechanical properties, and extends the service life of the middle groove. The company launched the corresponding technology in 2007, and the product matured at the end of 2009. The company's corresponding sales revenue in 2010 was more than 20 million yuan, corresponding revenue in 2011 was nearly 40 million yuan, and the 2012 plan is 70 million yuan. Currently, the corresponding orders have exceeded the 2012 target. Since the central slot accounts for 70% of the total cost of scraper conveyors and is a consumable item, the corresponding market size exceeds 10 billion yuan. It is expected that the company's all-cast unwelded central groove will maintain a growth rate of around 60% in the next few years. Q's fund-raising project will effectively increase the company's production capacity and lay the foundation for the company's performance growth. After the company's fund-raising project was delivered, the production scale of the new project was: an annual output of 100 tunneling machines; 100 anchor rod drills; 10,000 sets of anchor rod tools; and 50 sets of scraper conveyors. The investment period is 1.5 years. The company has now invested with its own capital, and is expected to contribute to the company's performance by the end of 2013. Profit forecast. The company is a leading enterprise in the coal machinery industry segment. The company has certain characteristics in technology, management, etc., which can guarantee the steady development of the company's overall performance. Moreover, the company's fully cast central groove products have entered a period of rapid development, which will also provide a strong impetus for the company's performance growth. We expect the company's EPS for 2012, 2013, and 2014 to be 0.42 yuan, 0.59 yuan, and 0.72 yuan respectively. Slightly higher than the valuation of the coal machinery industry, calculated by 17-21 times PE, the company's target price is between 7.14 yuan and 8.82 yuan, and the recommended subscription price range is: 6.42 to 7.50 yuan. Risk warning. If the market development effect of the company's fully cast central groove products is weaker than expected, it will affect the company's future development space.