Author|Zhao Ling,Editor|Gu Jinfeng
Source: Jufeng Investment Advisory, Good Stock Application
The company is a leading enterprise in the civil explosives industry in mainland China, and its civil explosives products cover industrial explosives, industrial detonators and industrial detonating cords (tubes), and it is one of the enterprises with the most complete product varieties and specifications in the civil explosive industry in China.
Through years of intensive cultivation in the region with Hunan as the core, the company has covered the whole industrial chain of R&D, production, sales and blasting services in the field of civil explosives business. The product market has been deployed in South China, Southwest, Northwest and other regions. As a civil explosive enterprise with a regional industry core position, the company's products and services mainly include industrial explosives, industrial detonators, industrial detonators and industrial detonating cords, military detonators and other products and integrated civil explosive system integration services.
According to the statistics of the China Explosives Industry Association, in 2021, the company ranked eighth in the gross domestic production value of civil explosives manufacturers, tenth in the annual output of industrial explosives, and third in the annual output of industrial detonators. According to the data of 2023, among the domestic civil explosive production enterprise groups, the total blasting service revenue of the top 20 enterprises will be 32.931 billion yuan, and the blasting service revenue of YIPLI will be 5.701 billion yuan, ranking among the top three in the industry, and the company's domestic blasting business scale is at the leading level in China. The company has achieved rapid development in the same industry.
In the latest company survey, there are two highlights: first, the company actively responds to the national "Belt and Road" initiative, serves national strategic resource projects and large-scale livelihood projects, and has successively promoted large-scale hydropower and housing construction and blasting integrated service projects in Pakistan, Malaysia, Kuwait and other countries, and carried out large-scale mine construction service projects in Namibia, Liberia and other countries, which fully reflects the technical level of civil explosive professional companies and the responsibility of central enterprises. The company will continue to focus on key countries along the "Belt and Road", anchor development goals, and promote the high-quality development of international business.
The second is the company's higher dividend plan. The company said that according to the company's shareholder report plan for the next three years (2023-2025), when the conditions for cash dividends are met, the annual profit distributed in cash shall not be less than 40% of the distributable profit realized in the current year. The proportion of cash dividends in 2023 to the distributable profit of the year is 40.12%, and the company's cash dividend distribution will continue to implement the above dividend plan from 2024 to 2025.
Due to the company's asset restructuring in recent years, the valuation level in the past five years is not a reference. From the comparison of the industry, civil explosive products are the tertiary industry of chemical products in the basic chemical industry, with an average industry valuation of 24.43 times, despite the recovery of the industry, the growth rate of operating income and net profit in the first quarter is negative. In contrast, the company is at a good level in terms of total scale and growth capacity in civil explosive products, and is in the forefront of the industry with Guangdong Hongda and Jiangnan Chemical.
(Author: Zhao Ling, Practicing Certificate: A0680615040001)
Disclaimer: The above content is for reference only and does not constitute specific operation advice, and you shall operate at your own risk and profit and loss