Event: on August 1, 2023, Mayanson issued a half-yearly earnings forecast for 2023. In 2023, the expected performance of H1 company will rise in the same direction, and the expected return net profit will be 0.25-32 million yuan, an increase of 35%-75.5% over the same period last year. The non-return net profit will be deducted from 0.23-31 million yuan, an increase of 37.23%-80.46% over the same period last year.

The mine business continues to develop, and the company's performance continues to grow. Meanson is a "Internet of things +" high-tech enterprise, specializing in R & D, design, production, marketing and operation and maintenance services (ITSS) of complete sets of technology and equipment in the field of Internet of things and security. The main business is concentrated in the mining sector. In 2022, mine products accounted for 89.61% of business income. At present, it has formed an intelligent mine construction product system covering the whole chain of information infrastructure, intelligent geological guarantee, intelligent main coal flow transportation, intelligent auxiliary transportation, intelligent ventilation, intelligent power supply and drainage, intelligent safety monitoring system, intelligent washing, intelligent park and operation and management. In 2023, H1, benefiting from the policy promotion of the mining industry and the continuous improvement of the overall economic benefits of coal enterprises, the company actively opened up the main business market in combination with the established development strategy, and the mining business increased by a large margin compared with the same period last year, helping the company's performance to continue to improve, and it is expected to achieve both home-to-home net profit and non-home-to-home net profit.

Actively expand the business of the same technology chain and tap the new growth pole of revenue and profit. Using its own technology precipitation in intelligent sensing, Internet of things and big data analysis, Mayansen has expanded the two business areas of environmental protection and urban management on the same technology chain. at present, it has become the overall solution provider and operation and maintenance service provider of "Internet of things + security and emergency, mining, urban management, environmental protection". In terms of environmental protection business, the company focuses on the information construction of environmental protection and the provision of related products, mainly including pollution sources, surface water quality, air quality on-line detection equipment and environmental comprehensive monitoring, etc., at the same time, the relevant sewage treatment programs and products are extended to coal customers, in-depth service to mine customers, and increase customer stickiness. In terms of urban management business, the company mainly provides comprehensive information solutions, products and services for smart city management, including tunnel monitoring system, urban underground pipe corridor platform, dangerous gas online monitoring system and so on. In 2022, the company's gross profit margin for other businesses except mines reached 50.18%, and revenue increased by 173.25% over the same period last year, which is expected to become a new growth pole in the future.

Core technology continues to lead, independent supporting to improve competitive resilience. Mayansen attaches great importance to front-end technology research and development. The cost of 2023Q1 research and development reached 7.059 million yuan, an increase of 26.37% over the same period last year. At present, he has mastered more than 20 core key technologies based on "4Gateway 5Gateway WiFi + Cable", 5G and F5G high-speed network transmission technology, AI video analysis technology, and so on. He has participated in 10 national project research and development, 26 provincial and ministerial project research and development, 5 platform project research and development, and participated in the formulation of a number of national standards. By the end of 2022, the company has 296 software copyrights, 86 valid patents, 204standard product certification, quality management system certification, occupational health and safety management system certification and other qualifications, with CMMI software development maturity level five certification, belongs to the Ministry of Industry and Information Technology certification of the new specialized "Little Giant" enterprise. In addition, the company actively realizes independent matching of products and improves the resilience of market competition, it has formed mature production lines of 5G equipment such as front-end sensor production line, data acquisition sub-station production line, switch production line, and independent production lines such as broadcast and video equipment, display equipment, mine wastewater treatment devices, etc.

Join hands with Huawei to explore the potential of "AI+ Mine" and actively embrace industry changes. After 20 years of experience in the industry, Meanson has a certain market share and brand influence, and has successively cooperated with more than 1,000 customers, such as National Energy Group, Shougang Group, China Huadian, to provide intelligent safety production services. and since 2015 began to explore the road of smart / intelligent mine construction, has accumulated a series of smart mine, smart mine, smart mining and other comprehensive solutions. In recent years, in the face of the competitive situation that the main equipment manufacturers and operators have greatly entered the smart mine market, Mayanson has actively adapted to the changing situation and carried out multi-party cooperation. for example, at the level of market service, Huawei and Huawei jointly carry out research and collaborative design solutions for intelligent mine projects aimed at specific customers. At the technical level, based on the Huawei Pangu model, the existing artificial intelligence application software and AI application modules are trained and optimized with the support of Huawei's model and computing power, and more industry applications are developed on this basis to maintain the core competitiveness of the market.

Investment suggestion: as a high-tech enterprise in the coal mine field, the company continues to increase R & D investment, consolidate its core competitiveness, and benefit from the development of coal mine intelligence. We believe that the company will maintain high growth for a long time. It is predicted that the company's revenue from 2023 to 2025 will be 6.14 / 8.86 / 1.195 billion yuan, an increase of 63.3% / 44.3% / 349% over the same period last year, and the net profit of the company will be 0.75 / 109 million yuan respectively, an increase of 100.9% / 45.6% / 34.4% over the same period last year, corresponding to EPS 0.25 / 0.36 / 0.49 yuan and PE 66.2 / 45.5 / 33.8. For the first time, it was given a "overweight-B" rating.

Risk tips: industry demand is lower than expected; market competition continues to intensify; major business costs increase.