occurrences
Recently, Jinaobo released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 1,507 billion yuan, a year-on-year increase of 26.34%, and achieved net profit of 102 million yuan to mother, an increase of 302.50% over the previous year. 2024Q1, the company achieved revenue of 318 million yuan, a year-on-year increase of 29.74%, and achieved net profit to mother of 144.621 million yuan, an increase of 175.69% over the previous year.
reviews
1. Performance achieved relatively rapid growth. In 2023, the company achieved revenue of 1,507 billion yuan, a year-on-year increase of 26.34%. Among them, revenue from civilian explosion products increased by 45.86% over the same period of the previous year, revenue from chemical materials increased 8.54% over the same period of the previous year, and revenue from special equipment increased 11.10% over the same period of the previous year.
Achieved net profit of 102 million yuan to mother, an increase of 302.50% over the previous year. The main reason for the increase in profit is that the company continues to strengthen market expansion, and production and sales of explosion equipment and key raw and auxiliary materials have increased year-on-year, driving performance growth. At the same time, the company has taken a series of measures to optimize internal management, strengthen cost control, and increase gross margin to promote the company's efficiency growth. 2024Q1, the company achieved revenue of 318 million yuan, a year-on-year increase of 29.74%, and achieved net profit to mother of 144.621 million yuan, an increase of 175.69% over the previous year.
2. The penetration rate of electronic detonators has increased dramatically, and the company has a production capacity of more than 80 million electronic detonators. According to the China Blasting Equipment Industry Association, in 2023, the cumulative production and sales volume of industrial detonators by manufacturers in the explosion industry was 724 million and 729 million, respectively, down 10.06% and 10.54% year on year. Among them, the cumulative output of electronic detonators was 670 million, an increase of 94.89% year on year, accounting for 92.54% of total detonator production, accounting for a 50% increase over 2022. As of 2023, the company has an annual licensed production capacity of 115,000 tons of industrial explosives, an annual production capacity of 85.22 million rounds of industrial digital electronic detonators, and an annual licensed production capacity of 40 million explosives detonators and industrial electric detonators for export, forming an integrated full-industry chain business model integrating R&D, production, sales, transportation, and blasting services.
3. Intelligent equipment for civilian explosions is gradually being applied, and there are broad prospects for expansion into military industry and other fields.
In recent years, the explosion industry has successively introduced a series of industrial policies and guidance to promote the development of production processes and equipment in the direction of safe, reliable, green and intelligent manufacturing; encourage the development and application of intelligent industrial explosives production technology and equipment; and promote the transformation of production methods in the civilian explosion industry from “manufacturing” to “intelligent manufacturing” through “robot replacement and automation to reduce people”. The company applied a series of robot intelligent equipment widely used in the production of civilian explosives to fields such as food, packaging, military, fine chemicals, and electrical paper outside the civilian explosion industry, and obtained orders and deliveries. The company entered the field of bomb dismantling equipment in 2023. Furthermore, the developed automatic screening system has completed functional tests and entered the field of explosives equipment.
4. Profit forecast and investment rating: We expect the company's net profit to be 1.91, 3.08, and 456 million yuan respectively in 2024-2026, up 88%, 61%, and 48% year-on-year. Corresponding to the current stock price PE, it is 18, 11, and 7 times, respectively, to maintain the “gain” rating.
Risk warning:
Military orders fell short of expectations; industry competition intensified; market expansion fell short of expectations, etc.