隧道装备龙头，机械代人前景广阔

Investment Rating - The report assigns an "Accumulate" rating to the company [2] Core Insights - The company has demonstrated robust revenue growth with a CAGR of 21.49% from 2018 to 2023, and a net profit CAGR of 28.39% during the same period, driven by the increasing demand for tunnel equipment automation [1][26] - The company maintains a strong financial position with a debt-to-asset ratio around 30% and no interest-bearing debt, ensuring ample operating cash flow [1] - The mechanical replacement trend is gaining momentum, with rising demand for intelligent tunneling and mining solutions, supported by significant capital expenditure in the mining sector [7][10] Summary by Sections Revenue and Profitability - The company achieved a revenue of 9.54 billion in 2023, reflecting a year-on-year increase of 76%, and a net profit of 1.64 billion, up 111% year-on-year [26] - The gross profit margin has remained stable above 30%, while the net profit margin has gradually increased from 13.01% to 18.71% [41] Market Position and Product Competitiveness - The company holds a leading market share in wet spraying machines and ranks among the top tier in technology for rock drilling machines and lining cars, with a strong focus on R&D [7][19] - The company has developed a comprehensive product line that includes tunnel arch construction vehicles and intelligent drilling machines, enhancing its competitive edge in the market [34] Industry Trends and Growth Drivers - The tunnel construction machinery market in China reached 252.66 billion in 2022, with a CAGR of 9.26% over the past five years, driven by increasing infrastructure investments [10][68] - The government is actively promoting infrastructure development, with railway investments expected to recover to pre-pandemic levels, further boosting demand for tunneling equipment [61][67] Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 12.15 billion, 15.51 billion, and 20.01 billion respectively, with net profits expected to be 1.85 billion, 2.35 billion, and 3.05 billion [29] - The company is positioned to benefit from the ongoing mechanization of tunnel construction, which is anticipated to drive sustained growth in the tunneling equipment sector [29][44]