JIANGNAN CHEMICAL(002226) Huaxin Securities·2025-04-23 02:05Investment Rating - The report assigns a "Buy" investment rating for Jiangnan Chemical [6] Core Views - Jiangnan Chemical achieved a total operating revenue of 9.481 billion yuan in 2024, representing a year-on-year increase of 6.59%, and a net profit attributable to shareholders of 891 million yuan, up 15.26% year-on-year [1] - The increase in profit is primarily attributed to the decline in raw material prices, particularly ammonium nitrate, which saw an average price decrease of 17.40% year-on-year [2] - The company is focusing on enhancing its core competitiveness through increased R&D investment, with the R&D expense ratio rising due to ongoing efforts in technological innovation [3] - The performance of the civil explosives industry is stable, with significant engineering projects exceeding expectations and ongoing market development efforts in various regions [4] Summary by Sections Financial Performance - In Q4 2024, the company reported a single-quarter operating revenue of 2.782 billion yuan, a year-on-year increase of 14.91% and a quarter-on-quarter increase of 23.68% [1] - The revenue composition by product shows: civil explosive products +6.61%, blasting engineering services +8.25%, new energy power generation -11.32%, other civil explosive businesses +17.69%, raw material production and sales +62.73%, and other businesses +5.06% [2] R&D and Innovation - The company has increased its R&D investment, leading to a rise in the R&D expense ratio, which is aimed at enhancing its technological innovation capabilities and core competitiveness [3] Market Development - Jiangnan Chemical has successfully optimized its production capacity structure and exceeded expectations in acquiring major engineering projects, with ongoing efforts to develop markets in regions such as Inner Mongolia, Sichuan, and Xinjiang [4] Profit Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 1.081 billion, 1.417 billion, and 1.807 billion yuan respectively, with corresponding P/E ratios of 14.3, 10.9, and 8.6 [11]