EXPL(SZ:002096) Changjiang Securities·2024-11-18 07:26Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 6.303 billion yuan for Q3 2024, representing a year-on-year growth of 0.29%, while the net profit attributable to shareholders was 524 million yuan, up 10.68% year-on-year [6][7]. - The overall business performance remains stable, with Q3 2024 revenue showing improvements both year-on-year and quarter-on-quarter, reflecting a positive operational outlook [7]. - The company is optimizing its production capacity by reallocating excess capacity from central regions to markets in Xinjiang and Tibet, which is expected to create new growth opportunities [7]. - The company secured new contracts worth 6.93 billion yuan in the first half of 2024, providing strong support for future revenue growth [7]. - The market in Tibet is anticipated to grow, driven by government initiatives to enhance the development of strategic resources [7]. - The company has been actively expanding its overseas business, providing integrated blasting services for various projects in countries along the Belt and Road Initiative [8]. - Projected earnings for 2024 and 2025 are 720 million yuan and 880 million yuan, respectively, with corresponding price-to-earnings ratios of 22 and 18 [9]. Financial Summary - For Q3 2024, the company achieved a gross margin of 23.10%, with a slight decrease of 2.75 percentage points quarter-on-quarter [7]. - The company’s total revenue for 2023 is projected at 8.428 billion yuan, with expected growth to 8.604 billion yuan in 2024 and 9.760 billion yuan in 2025 [18]. - The net profit for 2023 is estimated at 675 million yuan, increasing to 768 million yuan in 2024 and 940 million yuan in 2025 [18].