EXPL(SZ:002096) Changjiang Securities·2024-09-09 08:08Investment Rating - The investment rating for the company is "Buy" and is maintained [3][4]. Core Views - The company's revenue for H1 2024 is approximately 3.914 billion yuan, a year-on-year decrease of 2.15%, while the net profit attributable to shareholders is about 351 million yuan, reflecting a year-on-year increase of 15.4% [3][4]. - The core business of blasting services shows a significant growth, with revenue of 2.76 billion yuan, up 6.8% year-on-year, and a gross margin of 20.95%, which is an increase of 2.49 percentage points [3][4]. - The company is optimizing its regional structure, with notable growth in the northwest region, where revenue increased by 10% year-on-year [3][4]. - The overseas business is actively progressing, with revenue of 230 million yuan in 2024, a year-on-year growth of 9.58% [4]. Summary by Sections Financial Performance - For H1 2024, the company reported a revenue of approximately 3.914 billion yuan, a decrease of 2.15% year-on-year, and a net profit of about 351 million yuan, an increase of 15.4% [3][4]. - The company's gross margin for blasting services improved to 20.95%, while the gross margin for civil explosives decreased to 32.45% [3][4]. Regional Analysis - The northwest region's revenue grew by 10% year-on-year, while the central region saw a decline of 16.54% [3][4]. - The Xinjiang subsidiary generated revenue of 1.74 billion yuan and net profit of 255 million yuan, serving as a core support for the company [3][4]. Capacity and Optimization - The company has a total explosive capacity of 520,000 tons, with a utilization rate of 37.76% [3][4]. - The company is reallocating excess capacity from central regions to markets in Xinjiang and Tibet to optimize its layout and create new growth points [3][4]. Future Outlook - The company expects revenues of 720 million yuan and 880 million yuan for 2024 and 2025, respectively, with corresponding valuations of 20.7 and 16.9 times [4].