JIANGNAN CHEMICAL(SZ:002226) Xin Lang Cai Jing·2025-04-17 08:36Core Viewpoint - The company reported its 2024 annual results, meeting expectations with revenue of 9.481 billion yuan and a net profit of 891 million yuan, driven by acquisitions and strong performance in specific segments [1] Group 1: Financial Performance - In 2024, the company achieved operating revenue of 9.481 billion yuan (yoy +7%) and a net profit attributable to shareholders of 891 million yuan (yoy +15%) [1] - The fourth quarter of 2024 saw revenue of 2.782 billion yuan (yoy +15%, QoQ +24%) and a net profit of 141 million yuan (yoy +93%, QoQ -57%) [1] - The gross margin for 2024 was 30.08% (yoy +0.60 pct) and the net margin was 11.94% (yoy +0.70 pct) [1] Group 2: Strategic Acquisitions - The company acquired a 2.6158% stake in Tianhe Chemical for 29.9575 million yuan, increasing its ownership to 92.2335% [2] - Tianhe Chemical reported a net profit of 397 million yuan in 2024 (yoy +15%), benefiting from strong demand in the Xinjiang market [2] - The company completed acquisitions of Chaoyang Hongshan and Shaanxi Hongqi, enhancing its position in the industrial explosives sector [2] Group 3: Market Position and Growth - The company generated 2.741 billion yuan in revenue from explosive products (yoy +7%) with a gross profit of 1.156 billion yuan (yoy +14%) [2] - The company holds the leading position in the industry with a production capacity of 765,500 tons of industrial explosives [2] - In 2024, the company signed new mining service orders exceeding 10 billion yuan, supporting mid-term growth in its mining services business [3] Group 4: International Expansion - The company achieved overseas revenue of 1.023 billion yuan (yoy +28%) with a gross profit of 185 million yuan (yoy +3%) [3] - The company has established a strong presence in international markets, particularly in uranium and copper mining sectors [3] - The company plans to enhance its overseas explosive production capacity, with significant assets expected to be injected in the future [3] Group 5: Future Outlook - The company is positioned to benefit from industry consolidation and rapid growth in the Xinjiang explosives market, with a long-term growth outlook [4] - Profit forecasts for 2025-2027 are set at 1.161 billion, 1.558 billion, and 1.723 billion yuan, respectively, with corresponding EPS estimates [4] - The current market valuation reflects a PE ratio of 13X, 10X, and 9X for the respective years [4]