Yahua Group(SZ:002497) Minsheng Securities·2025-06-10 23:30Investment Rating - The report maintains a "Buy" rating for Yahua Group (002497.SZ) [3][5]. Core Views - Yahua Group is driven by dual engines of civil explosives and lithium salt, with strong growth potential in both sectors. The company reported a net profit of 0.88 billion yuan in Q1 2025, a year-on-year increase of 446.7% [1][3]. Summary by Sections 1. Dual Business Model: Lithium Salt and Civil Explosives - Yahua Group has established a dual business model combining civil explosives and lithium salt, which supports long-term growth. The company has undergone significant transformations since its establishment in 1952, including privatization and acquisitions [10][11]. 2. Lithium Salt Business: Significant Resource Expansion - The lithium salt business is positioned as the company's "spear," with a strong resource base and production capacity. The current lithium price is at 54,000 yuan/ton, indicating strong cost support. The company aims to achieve a resource self-sufficiency rate of over 25% by 2025, with significant production capacity expansion planned [2][32]. 3. Civil Explosives Business: New Growth from Mining Services - The civil explosives business serves as the company's "shield," providing stable revenue. Yahua Group has expanded its domestic and international footprint through acquisitions and is well-positioned to benefit from infrastructure projects like the Sichuan-Tibet Railway [3][11]. 4. Financial Forecast and Investment Recommendations - The report forecasts net profits for Yahua Group to reach 5.8 billion yuan, 9.7 billion yuan, and 12.5 billion yuan for 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are projected to be 22, 13, and 10 times based on the closing price on June 10 [3][4][5].