EXPL(SZ:002096)2024-08-29 01:13Investment Rating - The report maintains an "Outperform" rating for the company [6] Core Views - The company reported a revenue of 3.914 billion yuan for H1 2024, a slight year-on-year decrease of 2.15%, while net profit attributable to shareholders increased by 15.43% to 351 million yuan [5][6] - The company's Q2 2024 revenue was 2.138 billion yuan, showing a year-on-year decrease of 7.04% but a quarter-on-quarter increase of 20.38% [5] - The company has a robust order backlog, with new contracts signed or executed amounting to 6.93 billion yuan in H1 2024, indicating sustainable future revenue growth [6] Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 39.14 billion yuan, with a net profit of 3.51 billion yuan, reflecting a year-on-year growth of 15.43% [5] - The average price of ammonium nitrate, a key raw material, decreased by 8.73% year-on-year to 2,612 yuan per ton [5] - The company's gross margin for Q2 2024 was 26.03%, an increase of 3.41 percentage points year-on-year [5] Market Position and Strategy - The company has strategically exited low-efficiency markets, which has contributed to the improvement in profitability [5] - The company is focusing on integrated services in the blasting industry, optimizing production and sales, and enhancing collaboration in engineering blasting services [6] - The company has secured numerous long-term contracts in resource-rich provinces, laying a solid foundation for future growth [6] Future Projections - The company is projected to achieve net profits of 761 million yuan, 906 million yuan, and 1.093 billion yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 18, 15, and 13 [6][7]