EXPL(SZ:002096)2024-03-28 16:00Investment Rating - The investment rating for the company is "Outperform" [15]. Core Views - The company reported a revenue of 8.428 billion yuan in 2023, representing a year-on-year growth of 52.9%. However, the net profit slightly decreased by 0.24% to 634 million yuan, which was below expectations [15]. - The gross profit margin improved significantly in Q4 2023, reaching 31.47%, up by 5.62 percentage points quarter-on-quarter. The company has a strong order backlog, ensuring long-term growth [15]. - The company is expected to benefit from the recovery and growth in the civil explosives industry, with a projected net profit of 761 million yuan in 2024, 906 million yuan in 2025, and 1.093 billion yuan in 2026 [15]. Financial Summary - Total revenue (million yuan): - 2022: 5,512 - 2023: 8,428 - 2024E: 9,725 - 2025E: 11,271 - 2026E: 13,074 [17] - Net profit (million yuan): - 2022: 635 - 2023: 634 - 2024E: 761 - 2025E: 906 - 2026E: 1,093 [17] - Earnings per share (yuan/share): - 2022: 0.84 - 2023: 0.56 - 2024E: 0.61 - 2025E: 0.73 - 2026E: 0.88 [17] - The company’s return on equity (ROE) is projected to increase from 9.1% in 2023 to 11.2% in 2026 [5].