JIANGNAN CHEMICAL(002226) 海通国际证券·2025-04-25 11:22Investment Rating - The report maintains an "Outperform" rating for Jiangnan Chemical [4][7]. Core Views - The consolidation in the explosives industry is ongoing, leading to increased concentration, with strong demand observed in western regions. Projected EPS for 2025-2027 is RMB 0.39, 0.44, and 0.5 respectively, with a 2025 PE valuation set at 20x and a target price of RMB 7.80 [4][7]. Financial Performance Summary - For 2024, the company is expected to achieve a revenue of RMB 9.48 billion, a year-on-year increase of 6.59%, and a net profit attributable to shareholders of RMB 0.89 billion, up 15.26%. The recurring net profit is projected at RMB 0.8 billion, reflecting a growth of 1.12% [4][7]. - The gross profit margin (GPM) is expected to improve to 30.08%, an increase of 0.6 percentage points, while the net profit margin (NPM) is projected to reach 11.94%, up 0.7 percentage points [4][7]. - The company’s revenue from blasting engineering is projected to be RMB 5.1 billion, up 8.2%, while civil explosives revenue is expected to be RMB 2.74 billion, up 6.6%. However, revenue from new energy power is anticipated to decline by 11.3% to RMB 0.78 billion [4][7]. Market Dynamics - The report highlights rapid growth in blasting engineering and overseas markets, with international revenue expected to reach RMB 1.02 billion, a year-on-year increase of 27.9%. Key drivers include significant client development and successful project acquisitions [4][7]. - The company is focusing on restructuring and integrating blasting services, seizing M&A opportunities, and enhancing its integrated mining services to promote sales through blasting [4][7].