The company has a complete business segment, a clear division of professional labor among subsidiaries, and remarkable advantages in integrated development. The company's products serve the entire life cycle of geological exploration - coal mine construction - coal mining - transportation - clean coal use. The machinery products, safety equipment, and coal production sectors are the main sources of the company's revenue and profit. Related businesses are mainly carried out by subsidiaries Tianma Intelligent Control, Shanxi Coal Machinery, Tiandi Benniu, the Institute of Coal Science, and Tiandi Wangpo. Intelligent mining provides customers with a package of solutions for businesses related to the coal industry. The requirements for scientific research and design capabilities, manufacturing and operation, products and services are high, and the company's integrated development advantages are remarkable.

The national coal science and technology team has strong scientific and technological strength. The company has a number of national and provincial scientific research platforms, a perfect talent team and scientific and technological innovation system, continuous investment in scientific research funding, and a large number of major scientific and technological achievements.

The barriers in the coal machine industry are high, and the company's three-engine business is leading. The coal machine industry has high barriers in terms of product entry, capital, technology, brand, etc., there are no new entrants, and the pattern is stable. Tiandi Technology's coal machine equipment manufacturing industry chain is well developed, with a market share of nearly 12%, ranking first in the industry over the years. The market share of the company's excavators, tunneling machines, and scraper conveyors was 33.1% (first), 6.4% (fifth), and 19.0% (second), respectively. Special instruments for coal mines account for 64.70% of the market, and are in an absolute leading position. The gross margin of the company's coal machine business has remained above 30% for a long time.

Investment value analysis: Steady performance and dividends enhance the company's value. Policies help coal machine leaders grow steadily. ① Under the guarantee and supply policy, China's future coal production is expected to remain high, and corresponding demand for coal machines, especially replacement demand for old coal mills, is expected to increase dramatically; ② Increased coal safety production cost extraction standards and investment in intelligent coal mine construction support sectors; ③ demand for overseas coal machines such as Russia and Indonesia is also expected to increase; ④ New production capacity will bring business growth to the Coal Industry Design Institute; ⑤ Increased performance and dividend rates are expected to increase dividends.

Profit forecast and valuation: The company's revenue for 2023-2025 is estimated to be RMB 306.9/334.1/36.47 billion yuan, and net profit attributable to the parent company is RMB 24.3/26.3/2.92 billion, respectively, and earnings per share are RMB 0.59/0.64/0.71 yuan respectively. According to the 4% dividend rate target, we believe that the company's reasonable valuation range for 2024 is 7.2-7.7 yuan, which corresponds to the current stock price space of about 9.1% to 16.4%. Considering the stable pattern of the coal machine industry, in the future, as coal production capacity and output increase, the overall demand for coal machine replacement will increase, and industry concentration will increase under the trend of intelligent development. As a leading coal machine company in the central government, the company has high-end products. Future performance is expected to grow steadily, and the company's dividends are stable, maintaining a “buy” rating.

Risk warning: The economic slowdown will lead to a decline in coal demand, a slowdown in fixed asset investment, the impact of production safety accidents, and the risk that accounts receivable will not be repaid in a timely manner.