JIANGNAN CHEMICAL(002226) 海通证券·2024-11-06 11:10Investment Rating - The investment rating for Jiangnan Chemical is "Outperform the Market" and is maintained [1] Core Views - The report highlights a significant increase in the company's non-net profit, which reached 260 million yuan in Q3 2024, representing a year-on-year growth of 40.31% [4] - The company achieved total operating revenue of 6.699 billion yuan in the first three quarters of 2024, a year-on-year increase of 3.48% [4] - The report emphasizes the ongoing integration of the group's civil explosives business assets, which is expected to enhance overall performance [4][6] - The company is actively expanding its market presence in Xinjiang, where the production of industrial explosives has shown substantial growth [5] - A planned acquisition of Shaanxi Hongqi Civil Explosives is expected to further increase the company's explosive production capacity [5][6] - The report projects the company's net profit for 2024-2026 to be 891 million, 1.038 billion, and 1.167 billion yuan respectively, with a reference valuation of 7.02-7.8 yuan per share based on a PE ratio of 18-20 times for 2025 [6][7] Financial Summary - In Q3 2024, the company reported an operating revenue of 2.249 billion yuan, a year-on-year increase of 10.35% [4] - The gross profit margin for Q3 was 36%, an increase of 5 percentage points year-on-year [4] - The company’s total operating revenue is projected to grow from 8.895 billion yuan in 2023 to 9.611 billion yuan in 2024, reflecting a year-on-year growth of 8.1% [7] - The net profit is expected to increase from 773 million yuan in 2023 to 891 million yuan in 2024, marking a growth of 15.3% [7] - The report indicates a steady improvement in the company's financial ratios, including a projected net asset return rate of 9.5% in 2024 [9][10]