EXPL(SZ:002096) Tai Ping Yang·2024-06-24 05:30Investment Rating - The report gives a "Buy" rating for Yipuli (002096.SZ) [9] Core Views - Yipuli has completed the merger with Nanling Explosives, enhancing its position as a leading enterprise in the civil explosives industry. The company’s industrial explosive production capacity has reached 521,500 tons, ranking second in the country, with a production volume of 503,100 tons in 2023 [4][24] - The company has signed and executed orders worth 31.901 billion yuan in 2023, with new orders of 3.918 billion yuan in the first quarter of 2024, indicating strong future growth potential [5][88] - The report forecasts net profits for Yipuli of 769 million yuan, 925 million yuan, and 1.155 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 18.5X, 15.5X, and 12.5X [9] Summary by Sections Company Overview - Yipuli's direct controlling shareholder is China Gezhouba Group Co., Ltd., holding 43.37% of the shares. The company was established in 1993 to serve the Three Gorges Project and has since developed into a leading integrated civil explosives enterprise [4][12] Merger and Industry Cycle - The merger with Nanling Explosives was completed in February 2023, solidifying Yipuli's status in the civil explosives sector. The company is expected to benefit from the industry's cyclical recovery [7][63] Financial Performance - In 2023, Yipuli achieved a revenue of 8.428 billion yuan and a net profit of 634 million yuan, significantly outperforming the combined scale of the pre-merger entities, demonstrating strong synergy effects [14] Business Segmentation - The explosive service business is the largest segment, contributing 64% of revenue and 48% of gross profit in 2023. Industrial explosives and industrial detonators contributed 21% and 10% of revenue, respectively [18][21] Capacity and Market Position - Yipuli's industrial explosive capacity is 521,500 tons, with an additional 340,000 tons under construction for electronic detonators, positioning the company favorably within the industry [24][69] Order Backlog and Future Growth - The company has a robust order backlog, with a total of 31.901 billion yuan in signed contracts for 2023, indicating a strong demand outlook [5][88] Downstream Market Dynamics - The civil explosives industry is experiencing high demand from the coal, metal, and non-metal mining sectors, which account for over 70% of total consumption, supported by rising fixed asset investments in these areas [71][72]