Rapidly growing capital market analysis of the coal machinery industry

In general, coal machinery includes coal and various mechanical equipment required for mining. The coal machinery involved in this article refers only to coal comprehensive mining equipment, including roadheaders, shearers, scraper conveyors, and hydraulic supports, commonly known as "three machines and one frame." Coal mining methods can be divided into three categories: blasting coal mining, general mechanized coal mining and comprehensive mechanized coal mining (full-mechanized coal mining). Blasting coal mining can only mechanize the process of transporting coal; ordinary mechanized coal mining can be mechanized by falling, loading and transportation; and fully mechanized coal mining can achieve mechanization in mining, loading, transportation, support and control.

More than 90% of the raw coal in China is mined through wells, and comprehensive mechanized coal mining represents the mainstream and future direction of coal mining methods. According to the technical characteristics of fully mechanized mining, usually a mine requires a coal cutter, a roadheader, a conveyor belt and 100-120 hydraulic supports. From the production value data point of view, fully-mechanized mining equipment accounts for 75% of the entire coal machinery output value, is the core of coal machinery, and the hydraulic support accounted for nearly 50% of the comprehensive mining equipment.

China's coal machinery industry is highly fragmented and the competition is fierce. The market share of the top 7 coal machinery enterprises in 2009 was only 33%, and the largest market share of Chinese coal equipment was only 8.6%, followed by Tiandi Technology (8.1%), Zhengzhou Coal Machinery (7.1%) and SANY International ( Quotes, information, reviews) (quotations, information, reviews) (2.8%). From the perspective of subdivided products, the three companies with the largest market share in boring machine are Sany Heavy Industry (31.5%), International Coal Mining Machinery (markets, information, reviews) (21.6%) and Tiandi Technology. (16.2%), the three companies with the largest market share in mining machinery are international coal machinery (24.7%), too heavy coal machinery (20.1%) and China Coal Equipment (13.7%), and the three companies with the largest market share of hydraulic support machines They are Zhengzhou Coal Machinery (25.2%), Pingdingshan Coal Machinery (10.1%) and Shiji International (9.1%).

The sales of coal machinery increased from 7.4 billion yuan in 2003 to 46 billion yuan in 2009. The compound annual growth rate during the period from 2003 to 2009 was as high as 35.8%, of which the sales of hydraulic brackets topped the growth rate of nearly 50%. The coal machinery industry has experienced rapid growth in the past few years. We believe that the machinery industry will still have more room for growth in the future. The factors that drive the growth of the industry include fixed investment in the coal industry, increase in the mechanization rate, and replacement demand.