矿服业务领先的民爆一体化服务商

Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first coverage [11]. Core Insights - The company benefits from being one of the top three producers in the civil explosives sector, capitalizing on the industry's upward trend. The total production value of civil explosives in China reached 43.658 billion yuan in 2023, reflecting a year-on-year growth of 10.93% [9]. - The company has a robust order backlog exceeding 30 billion yuan, ensuring stable revenue and profit growth in the mining service sector [9]. - The company's sales net profit margin has been improving since 2016, attributed to better revenue structure and cost control, with the gross profit margin increasing from 15.74% in Q1 2023 to 23.44% in Q4 2023 [1][9]. Summary by Sections Company Overview - The company operates in three main segments: civil explosives, mining services, and defense equipment. It ranks first in mining service revenue and third in industrial explosive production capacity in China [25][33]. Industry Context - The civil explosives industry is crucial for various sectors, including mining, water conservancy, and national defense, often referred to as "the foundation of basic industries" [52]. Financial Performance - From 2016 to 2023, the company's revenue grew from 3.212 billion yuan to 11.543 billion yuan, with a compound annual growth rate (CAGR) of 20.05%. The net profit increased from 63 million yuan to 716 million yuan during the same period, with a CAGR of 41.51% [39][40]. Profitability and Margins - The company's gross profit margin for 2023 was 20.67%, which is lower than some comparable companies due to a higher proportion of lower-margin mining service revenue [53]. The mining service segment accounted for 77% of total revenue in 2023, with a gross profit contribution of 63% [40]. Future Outlook - The company is expected to see continued growth in net profit, with projections of 843 million yuan, 951 million yuan, and 1.05 billion yuan for 2024, 2025, and 2026, respectively [10]. The diluted EPS is forecasted to be 1.11 yuan, 1.25 yuan, and 1.38 yuan for the same years [10].