JIANGNAN CHEMICAL(002226) 太平洋证券·2025-04-22 15:29Investment Rating - The report assigns a "Buy" rating for Jiangnan Chemical, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [6][12]. Core Insights - Jiangnan Chemical, a leading company in the civil explosives industry, achieved a revenue of 9.481 billion yuan in 2024, representing a year-on-year growth of 6.59%. The net profit attributable to shareholders was 891 million yuan, up 15.26% year-on-year [4][8]. - The company's main business in civil explosives showed steady growth, with the revenue from blasting engineering services reaching 5.104 billion yuan, a growth of 8.25% year-on-year, contributing significantly to overall performance [4]. - The company is actively expanding its production capacity and integrating operations, having acquired stakes in Chaoyang Hongshan Chemical and Shaanxi Hongqi Civil Explosives Group, increasing its industrial explosive capacity to 765,500 tons [5]. Summary by Sections Financial Performance - In 2024, Jiangnan Chemical reported a total revenue of 9.481 billion yuan and a net profit of 891 million yuan, with Q4 revenue reaching 2.782 billion yuan, marking a 14.91% increase year-on-year [4][8]. - The company forecasts revenue growth rates of 10.41%, 10.43%, and 10.44% for 2025, 2026, and 2027, respectively, with net profit growth rates of 13.23%, 12.76%, and 10.72% for the same years [8]. Business Expansion and Strategy - Jiangnan Chemical is focusing on integrated services and overseas business expansion, achieving 1.023 billion yuan in overseas revenue, a 27.85% increase year-on-year [4]. - The company is involved in the "Belt and Road" initiative, with successful projects in various countries, enhancing its international market presence [4][5]. Capacity and Market Position - The company is positioned as a consolidation platform for the civil explosives industry, with commitments from its controlling shareholders to resolve industry competition issues by the end of 2025 [5]. - Jiangnan Chemical's production capacity is expected to further increase with the anticipated integration of subsidiaries specializing in overseas operations and electronic detonators [5].