EXPL(SZ:002096) Guohai Securities·2025-11-02 12:32Investment Rating - The report maintains a "Buy" rating for the company [1][12]. Core Insights - The company has demonstrated solid growth in Q3 2025, with a year-on-year revenue increase of 10.6% and a net profit increase of 36.0% [6][15]. - The company is actively pursuing international expansion, with significant new contracts signed in various countries, contributing to a notable increase in international business revenue [8][10]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 7.356 billion yuan, representing a year-on-year growth of 16.7%, and a net profit of 644 million yuan, up 22.9% [5]. - In Q3 2025 alone, the company reported a revenue of 2.643 billion yuan and a net profit of 236 million yuan, with a gross profit margin of 27.21% [6][15]. - The operating cash flow for Q3 2025 was 352 million yuan, indicating strong cash generation capabilities [18]. Growth Drivers - The company has seen a significant increase in new contracts, with a total of 28.35 billion yuan in new or ongoing blasting service contracts from July to September 2025, an increase of 17.85 billion yuan compared to the same period last year [8]. - The company is focusing on digital transformation and enhancing its research and development efforts, particularly in smart mining and explosive equipment [7][10]. Future Projections - The company is projected to achieve revenues of 9.802 billion yuan, 11.379 billion yuan, and 13.170 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 869 million yuan, 999 million yuan, and 1.115 billion yuan [11][12].