EXPL(SZ:002096) Changjiang Securities·2025-11-09 13:45Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 7.36 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 16.7%. The net profit attributable to shareholders was 640 million yuan, up 22.9% year-on-year, while the net profit excluding non-recurring items was 620 million yuan, an increase of 22.0% year-on-year [2][6]. - In Q3 alone, the company achieved a revenue of 2.64 billion yuan, which is a 10.6% increase year-on-year but a 2.2% decrease quarter-on-quarter. The net profit for Q3 was 240 million yuan, reflecting a 36.0% year-on-year increase but a 3.3% decrease quarter-on-quarter [2][6]. - The company's gross margin and net margin increased to 24.1% and 9.5% respectively in Q3, both up by 0.6 percentage points year-on-year, despite a challenging industry backdrop [11]. - New signed contracts for blasting services reached 10.07 billion yuan in the first nine months of 2025, a 26.2% increase compared to the same period last year, providing a solid foundation for future revenue growth [11]. - The company is making progress in international expansion, with new contracts signed in Ethiopia and Malaysia, contributing to a 5.2% share of overseas revenue in the first three quarters [11]. - The company maintains a strong competitive position in Tibet, where the blasting industry has seen a 26.9% year-on-year growth, outpacing national averages [11]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 7.36 billion yuan, with a net profit of 640 million yuan and a net profit excluding non-recurring items of 620 million yuan [2][6]. - In Q3, the company reported a revenue of 2.64 billion yuan and a net profit of 240 million yuan [2][6]. Operational Highlights - The company has effectively managed costs, resulting in improved gross and net margins despite industry challenges [11]. - The company has seen a steady increase in new contracts, which supports future revenue stability [11]. Market Position - The company is actively pursuing international opportunities and has established a strong presence in the Tibetan market, which is expected to drive future growth [11].