EXPL(SZ:002096) ZHONGTAI SECURITIES·2024-05-12 06:00Investment Rating - The report maintains a "Buy" rating for the company with a market price of 12.95 CNY [1]. Core Views - The company is experiencing strong industry demand and has a solid order backlog, which supports its growth trajectory [4]. - The company reported a significant increase in revenue and net profit for 2023, with total revenue reaching 8.43 billion CNY, up 52.90% year-on-year, and net profit of 634 million CNY, a slight decrease of 0.24% year-on-year [4]. - The report anticipates continued growth in revenue and net profit for the years 2024 to 2026, with projected net profits of 768 million CNY, 903 million CNY, and 1.08 billion CNY respectively [4]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 8,428 million CNY, with a year-on-year growth rate of 266% [1]. - The net profit for 2023 was 634 million CNY, reflecting a year-on-year growth of 1229% [1]. - The company’s earnings per share (EPS) are projected to increase from 0.13 CNY in 2024 to 0.87 CNY by 2026 [1]. Market Position and Industry Outlook - The company is positioned as a leader in the civil explosives industry, benefiting from a favorable market environment and strong demand from downstream sectors [4]. - The report highlights that the mining industry is experiencing robust capital expenditure growth, which is expected to drive demand for the company's products [4]. - The company has successfully completed a restructuring process, enhancing its operational efficiency and market share [4]. Order and Production Capacity - The company reported a total of 319.01 billion CNY in new orders for 2023, a year-on-year increase of 204.98% [4]. - The production capacity for industrial explosives is currently at 521,500 tons, with a utilization rate of 89.97% [4]. - The company is expanding its production capacity in various regions, which is expected to alleviate bottlenecks and support order fulfillment [4].