Deep Earth Economy Low-Priced Target Overview: Anchoring the 14th Five-Year Plan, Mining Five Major Segmented Areas

Under the policy guidance of the 14th Five-Year Plan for Deep Earth Development, the deep earth economy has become a new growth track. This article focuses on low-priced stocks at ten yuan and below, centering around five major segmented areas: deep earth energy, superhard materials, deep earth mining, deep earth space, and tunnel equipment. It filters targets covering core links such as equipment manufacturing, material supply, and engineering services, exploring their trading elasticity under policy catalysis and market demand expansion.

1. Deep Earth Energy Sector: Drilling Equipment and Services Directly Benefit

Accelerating the development of deep-earth energy, it is driving a rise in demand for oil and gas drilling and production equipment and technical services. Low-priced targets offer both industry upcycle momentum and cost advantages.

• Petrochemical Machinery: The company’s main business is oil and gas drilling and production equipment. Rising demand for deep drilling boosts order growth; the low price of 7.72 RMB, combined with the recovery of the oilfield services industry chain, makes the business growth logic clear.

• Shen Kai Co., Ltd.: A leading provider of oil and gas exploration equipment. Its ultra-high-pressure blowout preventer technology breaks international monopolies. Deep-earth development directly drives the release of orders for high-end drilling and production equipment.

• Shandong Molong: A core supplier of oil and gas equipment and tubing materials. In deep drilling scenarios, product demand expands; the 7.74 RMB price point aligns with a low-price positioning strategy.

• De Shi Co., Ltd.: A sub-sector leader in downhole power drilling tools. Its downhole motor drilling tools technology advantages are evident. Advancing deep-earth engineering boosts both orders and capacity utilization.

• Zhunyou Co., Ltd.: Focused on oilfield technical services. As deep drilling starts increase, service demand rises directly. With a low price of 8.96 RMB, earnings sensitivity is highly tied to industry recovery.

• Petrochemical Oilfield Services: A global leader in oilfield services. Deep-earth engineering drives expansion of oil and gas exploration service orders. A very low price of 2.30 RMB plus scale advantages provides strong support for business growth.

II. Superhard Materials: the “Core Tool Kit” for Deep-Earth Drilling

With a surge in demand for wear-resistant, high-strength drilling and production tools for deep-earth drilling, superhard material companies are seizing market share thanks to their technology barriers; low-priced targets offer outstanding value for money.

• Yellow River旋风: A leading superhard materials (including diamond tools) company. In deep-earth drilling scenarios, product demand explodes. A low price of 7.02 RMB plus scenario fit means it directly benefits from incremental industry growth.

• Liliang Diamond: Dual-track development of lab-grown diamonds and superhard materials. As a core material supplier for deep-earth drilling and production tools, technology barriers support demand in the high-end market.

• Sifangda: A core manufacturer of superhard composite materials. It provides key materials for deep-earth drilling bits. The wear-resistant properties precisely match deep-earth drilling and production scenarios.

• Chuyang New Materials: Develops high-end copper-based materials and superhard materials. As a supplier of core materials for deep-equipment, technology synergy strengthens competitiveness.

• Hengsheng Energy: Based on clean utilization of coal, it extends into superhard materials business, while also offering supporting energy services for deep mining operations. Diversified business improves earnings elasticity.

• China Ordnance Red Arrow: Dual businesses in superhard materials (diamond) and defense and military industry. As a core material supplier for deep-earth drilling and production tools, deep technical accumulation builds a solid competitive moat.

III. Deep-Earth Mining: Resonance between Mining Equipment and Infrastructure Needs

Deep-earth mining development drives demand for mining machinery and engineering equipment. Low-priced heavy equipment-related targets show significant elasticity amid infrastructure investment trends.

• Citic Heavy Industries: A core mining equipment manufacturer. Deep-earth mining development drives machinery demand. With a low price of 6.90 RMB and strong technical capabilities, it supports order fulfillment capacity.

• Shanhe Intelligent Equipment: A comprehensive supplier of construction machinery and mining equipment. Deep-earth mining infrastructure drives equipment sales; technical adaptability strengthens competitive advantages in scenarios.

• Taiyuan Heavy Industry: A comprehensive provider of heavy equipment services. Growth in demand for deep-earth mining equipment drives business expansion. A very low price of 2.90 RMB amplifies elasticity of industry dividends.

• Construction Machinery: A construction machinery leasing and manufacturing company. Deep-earth mining infrastructure drives equipment demand. With a low price of 4.18 RMB and a light-asset leasing model, it optimizes cash flow.

• Xiamen Construction Machinery: A core supplier of construction machinery. Deep-earth mining development drives demand for construction equipment. Under the 3.15 RMB low-price logic, business growth certainty is high.

• Northern Co., Ltd.: A leading supplier of mine dump trucks. Deep-earth mining extraction drives demand for heavy-duty mining trucks. Technological leadership supports expansion of market share in the high-end market.

IV. Deep-Earth Space: Underground Resources and Transportation Development Open New Space

Deep-earth space utilization (such as salt cavern energy storage, underground transportation, utility tunnels, etc.) has become a key focus supported by government policy. Relevant design, operations, and resource development targets benefit.

• Su Yan Jingshen: A core target for salt cavern resource development. Salt cavern energy storage is an important direction for deep-earth space utilization, and its business uniqueness opens up new growth potential.

• Metro Design: A provider of urban underground space design services. Construction of deep-earth space (underground transportation networks) drives demand for design services; technical experience accumulation strengthens its ability to win orders.

• Design General Institute: A municipal engineering design services provider. Development of deep-earth space (underground utility tunnels, transportation, etc.) drives design orders; a low-price attribute of 8.55 RMB increases transaction elasticity.

• Sinochem Salt Chemical: Runs dual businesses in salt cavern resource development and chemical production. Salt cavern energy storage scenarios closely match the logic of deep-earth space utilization; a price of 7.84 RMB highlights the business linkage.

• CRRC: A leading rail transit equipment manufacturer. Construction of deep-earth space (underground transportation networks) drives equipment demand. With a low price of 7.93 RMB and its industry position, it amplifies growth dividends.

• Shentong Metro: A metro operations and engineering services provider. Construction of deep-earth space (urban underground transportation) drives engineering business; at a price level of 9.16 RMB, business alignment strengthens the growth logic.

V. Tunnel Boring Equipment: Urgent Demand for Construction Equipment and Engineering Services

As tunnel and deep-chamber construction accelerates, it drives demand for tunneling equipment, geotechnical engineering, and repair services. Low-priced engineering and equipment targets directly capture incremental demand.

• Tunnel Co., Ltd.: A provider of tunnel engineering construction and equipment services. Deep tunnel construction demand drives business expansion. A low price of 7.00 RMB plus engineering experience supports stable profitability.

• Sinochem Geotechnical: A provider of geotechnical engineering solutions. Deep tunnel and underground space construction drives demand for geotechnical services; a low-price attribute of 4.05 RMB amplifies demand elasticity.

• CRRC Engineering: A manufacturer of equipment such as tunnel boring machines. Deep tunnel construction drives demand for tunnel boring machines. A low price of 8.75 RMB plus technological leadership drives growth in equipment sales.

• Shanhe Intelligent Equipment: Engineers machinery adapted for deep tunnel construction equipment demand. Multi-scenario business layout supports order elasticity; at a price level of 13.81 RMB, technical adaptability strengthens competitive advantage.

• Construction Engineering Repair: A provider of geotechnical engineering repair services. As repair demand supporting deep-earth space development is released, business extension opens up growth room; at a price of 13.63 RMB.

• CREC Heavy Industries: A leading manufacturer of underground engineering equipment. Deep tunnel construction creates urgent demand for tunneling equipment. With a low price of 5.70 RMB plus deep product fit, it directly benefits from demand surges.

VI. Summary and Risk Warning

The above targets comprehensively cover the core links in the deep-earth economy industrial chain. They benefit from the policy catalyst of the “14th Five-Year Plan for Deep Earth Development” as well as have either low-priced transaction elasticity or technology barriers, providing diversified choices for positioning within the deep-earth economy.

Please note three major risks: the implementation timing of industry policies, the progress of realization of market demand, and the validation period of individual stock performance. It is recommended to dynamically track opportunities for leading targets in each segment by combining changes in policy dynamics, capital flows, and fundamental developments.

All information and data used in this article are sourced from publicly available online information and are for reference only; they do not constitute any investment advice! (Data cutoff: October 21)