Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - The company, Boshen Technology, is recognized as a "small giant" in the mining safety equipment and services sector, focusing on AI and special robots as new growth points [1][10] - The company achieved a revenue of 120 million yuan in 2023, with a net profit of 14.09 million yuan, a gross margin of 50.85%, and a net margin of 11.72% [1][37] - The main revenue source is the coal mine fire warning and automatic extinguishing system, while the income from inspection robots is rapidly increasing, accounting for 13% of total revenue in 2023 [1][26] Company Overview - Boshen Technology specializes in the research and development of mining safety technology, equipment manufacturing, and operational services, recognized as a national high-tech enterprise and a "small giant" [1][10] - The company was established in 2005 and has been listed on the National SME Share Transfer System since April 2016, moving to the innovation layer in June 2022 [1][10] Financial Performance - In 2023, the company experienced a revenue decline of 19.13% compared to the previous year, primarily due to decreased coal prices and reduced product demand [37] - The gross margin for the company in 2023 was 50.85%, with a net margin of 11.72% [41][38] - The company's R&D expense ratio increased significantly to 13.7% in 2023, reflecting higher investment in research and development [42] Industry Insights - The mining safety production sector is receiving increased attention from the government, with a central budget of 2.914 billion yuan allocated for coal mine safety renovations in 2024, a year-on-year increase of 1.29% [50][52] - The coal mining industry remains a crucial part of China's energy structure, with a focus on intelligent mining to enhance safety and efficiency [45][60] - The report highlights the potential for significant growth in the intelligent mining market, with a focus on upgrading existing mines to smart operations [62] Research and Development - The company holds 23 patents, including 4 invention patents, and is actively developing AI-powered inspection robots to enhance operational safety and efficiency [3][63] - The AI visual algorithm used in the inspection robots is based on advanced neural network models and is designed to accurately identify violations and equipment anomalies in mining environments [3][63]