Core Viewpoint - The report from Tianfeng Securities indicates that Gaozheng Minexplosion achieved a net profit attributable to shareholders of 126 million and a non-recurring net profit of 114 million in Q1-Q3 of 2025, representing year-on-year increases of 13.68% and 15.7% respectively [1] Financial Performance - In Q3 of 2025, the company reported a net profit attributable to shareholders of 57 million and a non-recurring net profit of 52 million, with year-on-year changes of +1.83% and -3.08% respectively [1] - The company has adjusted its forecast for net profit attributable to shareholders for 2025-2027 to 210 million, 310 million, and 440 million, down from previous estimates of 270 million, 390 million, and 570 million [1] Industry Outlook - As a leading player in civil blasting under the Tibet State-owned Assets Supervision and Administration Commission, the company is expected to benefit significantly from the construction of the Yaxia Hydropower Station, mining activities, and high demand in railway infrastructure [1]

Core Viewpoint - The report from Tianfeng Securities indicates that Gaozheng Minexplosion achieved a net profit attributable to shareholders of 126 million and a net profit excluding non-recurring items of 114 million in Q1-Q3 of 2025, representing year-on-year increases of 13.68% and 15.7% respectively [1] Group 1 - In Q3 of 2025, the company reported a net profit attributable to shareholders of 57 million and a net profit excluding non-recurring items of 52 million, showing year-on-year growth of 1.83% and a decline of 3.08% respectively [1] - As a leading civil explosives company under the Tibet State-owned Assets Supervision and Administration Commission, the company is expected to benefit significantly from the construction of the Yaxia Hydropower Station, mining operations, and high demand in railway infrastructure [1] - Based on the actual operating conditions in the first three quarters, the firm has revised down its forecast for the company's net profit attributable to shareholders for 2025-2027 to 210 million, 310 million, and 440 million respectively, compared to previous estimates of 270 million, 390 million, and 570 million [1] - The rating for the company remains at "Buy" [1]

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]