Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][11]. Core Views - The company is positioned to benefit from the high demand in the Xinjiang civil explosives market, being the only producer of ammonium nitrate in the region, which provides both supply and licensing advantages [3][9]. - Following the acquisition by Guangdong Hongda, the company is expected to receive additional civil explosive capacity and optimized regional layout, leading to significant revenue and profit elasticity [3][9]. - Projected net profits for the company are estimated to reach 750 million, 890 million, and 940 million yuan for the years 2025 to 2027, respectively [3][9]. Company Overview - The company operates in the civil explosives and chemical sectors, covering the entire civil explosives industry chain, including upstream natural gas transportation, LNG, and ammonium nitrate production, as well as downstream blasting engineering and mining services [6][20]. - The company was established in 1958 and has undergone several transformations, becoming a joint-stock company in 2011 [20][21]. Civil Explosives Sector - The civil explosives market in Xinjiang is experiencing rapid growth due to the release of coal production capacity, with the company benefiting from its comprehensive industry chain [7][54]. - The company has a production capacity of 119,500 tons of industrial explosives and is the only producer of ammonium nitrate in Xinjiang, with a capacity of 660,000 tons per year [7][22]. - The market share of leading companies in the civil explosives industry is increasing, with the CR10 rising from 44% in 2017 to 62% in 2024 [7][59]. Chemical Sector - The company has expanded its chemical production capabilities through the acquisition of Xinjiang Yuxiang HuYang Chemical Co., which includes products like compound fertilizers, melamine, and ammonium nitrate [8][24]. - By the end of 2024, the company’s production capacities for melamine, urea, nitro compound fertilizer, and ammonium nitrate are projected to reach 210,000, 600,000, 900,000, and 660,000 tons per year, respectively [8][25]. Financial Performance - The company’s revenue and net profit have shown fluctuations, with a significant increase in revenue from 2.61 billion yuan in 2021 to 6.90 billion yuan in 2022, followed by a decline in 2024 due to low prices of bulk chemicals [31][37]. - In 2024, the company achieved a revenue of 6.10 billion yuan, a decrease of 13.1% year-on-year, and a net profit of 670 million yuan, down 21.7% year-on-year [31][41]. Market Dynamics - The demand for civil explosives is primarily driven by mining activities, with coal mining accounting for a significant portion of the demand [59][65]. - Xinjiang's coal production is expected to continue growing, supported by national policies and the region's rich coal resources, which will further drive the demand for civil explosives [69][73].

Group 1 - The project by Shaanxi Xinghua Group is significant as it will be the only ammonium nitrate and nitro compound fertilizer production project in the province, contributing to the integrity of the industrial structure and promoting economic development in Yulin [1] - The environmental impact assessment (EIA) process was expedited, with the approval time reduced to only 10 working days, showcasing the efficiency of the provincial ecological environment department [1][2] - The project aims to achieve an annual reduction of over 800 tons of air pollutants, with total pollutant emissions decreasing by more than 45% once operational [1] Group 2 - The provincial ecological environment department has optimized the EIA approval process, reducing the time by over 60% compared to the statutory period, which aids in addressing EIA-related issues for enterprises [2] - Site selection optimization is crucial in the EIA process to minimize environmental impacts, as demonstrated by the 750 kV power transmission project that will enhance energy connectivity in the province [3] - The provincial ecological environment department has implemented a comprehensive service approach for key projects, including pre-project management, on-site visits, and post-approval quality checks to ensure high-quality EIA documentation [4] Group 3 - The department has established a spatial control system for ecological environment management, integrating various environmental factors to provide precise management for major projects [4] - The application of ecological environment zoning results has helped avoid investment risks for key projects, ensuring smoother approval and construction processes [5] - Shaanxi has initiated pilot projects for planning EIA and project EIA linkage, benefiting 34 projects with a total investment of 3.698 billion, indicating a commitment to reform and efficiency in EIA processes [6]

▍ 广东宏大溢价收购雪峰科技2 1%股权，控股雪峰科技。 2 0 2 4年7月2日，根据雪峰科技公告，其控股股东新疆农牧投与广东宏大签署《股权转让框架协 议》，以9 . 8 0元/股的价格溢价5 0%收购雪峰科技2 1%的股份，交易价款合计2 2亿元。本次交易 后，公司控股股东为广东宏大，实际控制人为广东省环保集团有限公司。为解决同业竞争问题， 广东宏大承诺将自取得雪峰科技控制权之日起5年内，将民爆相关资产注入雪峰科技。2 0 2 5年2月 2 5日，广东宏大公告上述交易已过户完成。 ▍ 对广东宏大来说，收购有助于提升规模优势，把握新疆市场发展机遇。 广东宏大是我国矿服民爆一体化龙头公司，根据广东宏大公司公告，2 0 2 3年广东宏大拥有工业炸 药设计产能4 9 . 4万吨，产量4 1 . 6万吨，位列全国前三，爆破服务收入8 9 . 3 4亿元，位列行业第 一。2 0 2 4年合计收购产能1 9 . 7 5万吨（雪峰科技11 . 7 5万吨、盛世普天4 . 5万吨、阳生化工3 . 5万 吨），目前合计产能接近7 0万吨，龙头加速扩张整合。广东宏大收购雪峰科技，将有利于其规模 优势的提升，同时便于其通过产能调 ...