EXPL(SZ:002096)2024-09-06 12:23Investment Rating - The report maintains a rating of "Buy" for the company [5] Core Views - The company, Yipuli, is a leading player in the civil explosives industry, benefiting from high demand in mining, energy, and water conservancy sectors due to favorable policies and market conditions [2][3] - The company has a strong market position and is expected to achieve stable growth driven by its integrated service model and expansion into western regions and overseas markets [3][6] Summary by Sections Company Overview - Yipuli is a leading civil explosives company in China, with a focus on integrated blasting services, production, and sales of explosives [16] - The company ranks second in production value and first in industrial explosives output among civil explosive manufacturers in 2023 [16] Industry Analysis - The civil explosives industry is supported by high demand from mining (70% of demand) and infrastructure projects (approximately 10%) [2] - The industry is experiencing improved supply dynamics due to policy-driven capacity reductions and increased concentration among leading firms [2] Business Analysis - The company’s integrated blasting service accounts for 63.7% of its revenue, with a focus on mining and infrastructure projects [26] - The company has a strong order book, with new contracts signed in 2023 amounting to 31.9 billion yuan, indicating robust future revenue potential [24] Financial Forecast - Revenue is projected to grow at a CAGR of 13.0% from 2024 to 2026, with net profit expected to increase by 20.7% in 2024 [6][7] - The company’s current PE and PB ratios are at historical lows, suggesting undervaluation relative to its growth potential [3][7] Growth Drivers - Key growth drivers include ongoing investments in mining and infrastructure projects, favorable commodity prices, and the company’s strategic expansion into western China and international markets [11][24]