Leading coal support equipment, a rising star in comprehensive mining equipment, the company specializes in R&D, manufacturing, sales and service of coal machinery such as mining support equipment, safety drilling rigs, tunneling equipment, and transportation machinery. They are mainly used for support construction, water exploration and gas exploration operations, excavation work surfaces, and work surface coal transportation, respectively. Among them, support equipment accounts for about 30% of the domestic market share, and new products such as tunneling machines and scraper conveyors are growing rapidly. Coal machinery is still in a period of rapid growth. Demand for coal machinery mainly comes from additional coal mining, increased mechanization rate of coal mines, and equipment upgrades. According to estimates by the China Coal Machinery Industry Association, the total demand of the coal machinery industry in 2011-2015 reached 514.7 billion yuan. Among them, the demand brought about by new production capacity is 124.9 billion yuan, the demand brought about by mechanization is 22.7 billion yuan, and the total demand for equipment upgrades and technical improvements is 367.2 billion yuan, so there is huge room for growth. Company Highlight 1: The main products are leading in technology, and the profitability is very strong. The company started with anchor drill rig production. Its support equipment products have always been the company's main source of revenue. The gross margin is stable at around 65%, and the profitability is extremely strong. The company has unique advantages in pneumatic drill truck R&D and manufacturing technology, high-efficiency pneumatic motor manufacturing technology and pneumatic anchor drill manufacturing technology, superhard rock drilling equipment manufacturing technology, and forward and reverse pneumatic drilling rig manufacturing technology. We believe that the company's technological advantage in competition in the domestic support equipment industry is obvious, and its market share will increase further. Due to the high technical barriers and few new entrants in this segment, the company's products can maintain the current high level of profitability for a long period of time. Company Highlight 2: The unique technology of scraper conveyors has achieved a breakthrough, and product demand will grow rapidly. Scraper conveyors have an average life of only 5 years due to poor working environments and high friction losses. Of these, the center groove, which accounts for 70% of its value, has a life span of about 1 year, and needs to be replaced every year, bringing about a large number of renewal requirements. However, after years of research and development, the company successfully achieved a breakthrough in the overall weldless manufacturing technology of the central groove. We believe that the company's fully cast unwelded central groove technology is the first in the world. It has been applied to scraper conveyors to further improve major indicators such as coal life and reliability, so that the product has obvious cost performance advantages and brings huge alternative market space. After years of market promotion and accumulation, its product advantages have been recognized by customers, and it will gradually enter an incremental period of price increases, thus leading to a significant increase in revenue and profit. The reasonable value range is 8.46-8.93 yuan, combining relative valuation and absolute valuation results. We believe that the reasonable value range for the company's shares is 8.46-8.93 yuan, and the price-earnings ratio range corresponding to diluted earnings per share issued in 2012 is 18-19 times. Risks suggest that fund-raising projects are progressing more slowly than expected; industry competition is intensifying; and rising labor costs affect profitability.