Guangdong Hongda (SZ:002683) Guoxin Securities·2025-03-28 01:15Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Viewpoints - The company's mining service business drives steady growth in revenue and profit, with 2024 revenue reaching 13.652 billion yuan, a year-on-year increase of 17.6%, and net profit attributable to shareholders of 898 million yuan, up 25.4% [1][8]. - The company is actively integrating explosive production capacity and optimizing its layout, having acquired controlling stakes in two companies, which will increase its explosive capacity to 697,500 tons per year, ranking it among the top two in the country [1][14]. - The company has a balanced service across various mineral types, with current mining service orders exceeding 30 billion yuan, and a significant market share in the domestic blasting service sector [2][15]. - The overseas business has shown robust growth, with revenue increasing by 43.66% in 2024, contributing to an increasing share of total revenue [2][22]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 13.652 billion yuan, a 17.6% increase year-on-year, and a net profit of 898 million yuan, reflecting a 25.4% growth [1][8]. - The mining business generated 10.811 billion yuan in revenue, up 21.01%, with a gross margin of 17.72% [9]. - The explosive materials sales business reported revenue of 2.309 billion yuan, a slight increase of 1.18%, while the defense equipment business saw a significant rise of 88.03% in revenue [9][23]. Business Segments - The mining service business focuses on large projects and clients, with the top five clients accounting for 45.70% of revenue [2][15]. - The company has expanded its explosive production capacity through acquisitions, enhancing its market position in the explosive materials sector [14][11]. - The defense equipment segment has also seen growth due to increased deliveries and acquisitions, contributing positively to overall performance [23]. Market Position and Strategy - The company ranks first in domestic blasting service revenue with a market share of 31.95%, an increase of 4.39 percentage points from the previous year [2][15]. - The overseas business is expanding, with significant investments in Zambia and Peru to support local mining projects and enhance market presence [22][24]. - The company is well-positioned to capitalize on the growing demand for mining services and explosive materials, supported by a strong order backlog and strategic acquisitions [15][24].