Guangdong Hongda (SZ:002683) Changjiang Securities·2025-03-29 09:24Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 13.65 billion yuan for 2024, representing a year-on-year increase of 17.6%. The net profit attributable to shareholders was 0.9 billion yuan, up 25.4% year-on-year, and the net profit excluding non-recurring items was 0.85 billion yuan, an increase of 26.1% year-on-year [3][10]. - In Q4 2024, the company achieved a revenue of 4.38 billion yuan, which is a 21.6% increase year-on-year and a 16.9% increase quarter-on-quarter. The net profit attributable to shareholders for this quarter was 0.25 billion yuan, up 13.1% year-on-year and 4.6% quarter-on-quarter [3][10]. Summary by Sections Mining Service Business - The mining service segment achieved a revenue of 10.811 billion yuan in 2024, a year-on-year growth of 21.0%. The gross margin for this segment was 17.7%, an increase of 0.9 percentage points compared to 2023. The company has over 30 billion yuan in orders on hand, with new orders steadily increasing [10]. - The company is actively expanding in high-demand areas for civil explosives, with revenue from the Northwest region increasing from 16.2% in 2023 to 19.7% in 2024, benefiting from the "Western Development" strategy [10]. Acquisition and Market Expansion - The successful acquisition of a 21% stake in Xuefeng Technology significantly expanded the company's market share in Xinjiang. The total production capacity for industrial explosives increased from 580,000 tons per year to 697,500 tons per year, with Xinjiang's capacity reaching 178,500 tons per year [10]. - The company is deepening its "Belt and Road" strategy, with overseas business revenue reaching 1.356 billion yuan, accounting for nearly 10% of total revenue, and growing by 43.7% year-on-year [10]. Defense Equipment Sector - The defense equipment segment generated a revenue of 0.35 billion yuan, a 47.7% increase year-on-year, primarily due to increased deliveries of traditional military products and revenue from the acquisition of Jiangsu Hongguang [10]. - The acquisition of Jiangsu Hongguang, a key producer of black powder, enhances the company's capabilities in the defense sector, with products used in various military applications [10]. Future Profit Projections - The company is expected to achieve net profits attributable to shareholders of 1.19 billion yuan, 1.32 billion yuan, and 1.62 billion yuan for the years 2025 to 2027, respectively [10].