Investment Rating - The report maintains an "Accumulate" rating for the company [1][6] Core Views - The company has shown steady profit growth, with a revenue of 1.26 billion and a net profit of 0.57 billion in Q3 2025, reflecting year-on-year increases of 7.53% and 13.68% respectively [1] - The company is expected to benefit from high demand in the civil blasting industry due to ongoing infrastructure projects in Tibet, including the Yarlung Tsangpo River hydropower project and major mining operations [3] - The report has adjusted the projected net profit for 2025-2027 to 2.1 billion, 3.1 billion, and 4.4 billion respectively, down from previous estimates [1] Financial Performance - For the first three quarters of 2025, the company achieved a gross margin of 29.32%, an increase of 2.42 percentage points year-on-year [2] - The net profit margin for the same period was 10.58%, up by 0.65 percentage points year-on-year, with a significant increase in cash flow from operations to 2.01 billion, a rise of 1.76 billion year-on-year [2] - The company’s revenue is projected to grow from 1.55 billion in 2023 to 2.90 billion in 2027, with a compound annual growth rate of 21.46% [5] Industry Outlook - The civil blasting industry in Tibet is experiencing high growth, with a production value increase of 26.9% year-on-year, significantly outpacing the national average [3] - Major projects such as the Yarlung Tsangpo River hydropower project and the second phase of the Jilong Copper Mine are expected to drive demand for blasting services [3] - The report highlights the ongoing construction of new railways and infrastructure projects in the region, further supporting the positive outlook for the company [3]