Shanxi Huhua (SZ:003002) HUAXI Securities·2025-04-29 06:00Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company confirmed a bottom reversal with its Q1 2025 performance being the best in nearly five years, achieving a revenue of 2.23 billion yuan, a year-on-year increase of 25.29%, and a net profit of 0.23 billion yuan, a year-on-year increase of 70.44% [2][6] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 1.101 billion yuan, a decrease of 16.19% year-on-year, and a net profit of 0.14 billion yuan, down 31.59% year-on-year, with an EPS of 0.70 yuan [2][6] - The company sold 39.7 million detonators in 2024, a decrease of 21% year-on-year, while sales of explosives reached 54,000 tons, an increase of 2.97% year-on-year [3] Production Capacity and Market Demand - The company expanded its explosive production capacity through the acquisition of 98.70% of Hebei Tianning Chemical for 363 million yuan, increasing total explosive capacity to 114,000 tons [4] - The demand for detonators in overseas markets is strong, and the company has efficiently expanded its production capacity to meet this demand [4] Technological Advancements - The company developed a tunnel blasting intelligent loading robot, which is expected to open a market worth nearly 40 billion yuan in China, particularly suitable for tunnel construction in challenging environments [5] Profit Forecast - The updated profit forecast estimates revenues of 1.744 billion yuan, 2.454 billion yuan, and 2.886 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 0.327 billion yuan, 0.463 billion yuan, and 0.510 billion yuan [6][10]