Hongda Blasting (002683): Strategic Transformation of Leading Enterprises in Mining Civil Explosion Service Layout of High-end Military Industries
The domestic mining public has exploded the leader and built three major business sectors.
Guangdong Hongda Blasting Co., Ltd. (referred to as Hongda Blasting Co., Ltd.) is mainly engaged in three major business segments, namely mining engineering services, production and sales of civilian blasting equipment, and defense equipment.
Mine engineering service is one of the company’s traditional industries and an important part of the company’s business income.
The production and sales of civilian explosive equipment is another traditional business of the company, and it is a business segment with the strongest profitability.
Military industry segment-As an important strategic development segment of Hongda Blasting Company, Guangdong Minghua Machinery Co., Ltd., a wholly-owned subsidiary, currently undertakes military products business.
In the first half of 2019, the company achieved operating income of 24.
3.9 billion, attributable to the net profit of the parent company.
3.7 billion, an increase of 30 over the same period last year.
Deeply cultivate the mining service civilian explosion business, and strategically expand the defense equipment sector.
Hongda Blasting takes large and medium-sized open-pit mines as its main business area. It provides customers with civilian explosion equipment products (including on-site mixing), mine infrastructure replacement, overall blasting solution design, blasting mining, mineral packaging and transportation and other vertical series of services.Created a “integrated, precise, personalized, safe”, “mining and civilian explosion integration” service model with blasting technology as its core.
The defense equipment segment is the company’s key strategic transformation segment. Reorganization. Through the continuous advancement of national policies, the company’s investment in this segment has also increased. On the basis of ensuring the completion of traditional defense equipment tasks, the company takes the subsidiary Minghua Company as theThe platform invests in the development of a foreign trade missile weapon system (hereinafter referred to as the “HD-1 Project”).
The HD-1 missile project is progressing smoothly, advancing the layout of 四川耍耍网 the high-end military industry.
In 2018, the HD-1 project has made breakthrough progress.
On October 15, 2018, Guangdong Hongda Blasting Co., Ltd. independently invested and independently developed the missile weapon system HD-1 project to successfully complete the first supersonic cruise flight test at a flight test base in the north.
HD-1 project uses international advanced solid stamping engine technology.
This release test mainly validates technical subjects such as launch systems, missile power systems, and flight control systems.
Missile out-of-box, transition, and supersonic cruise flight specifications meet the test program requirements.
The HD-1 project is still in the test and verification stage. Subsequent companies will still need to test according to the expected technology, product adaptability, stability, 合肥夜网 and reliability. Until the company obtains the corresponding production and export license qualifications for the project and supplies a large number of products to customersAfter the contract, the company will expand the project to achieve mass production.
According to the company’s 2019 Interim Report, the approval of the export of the HD-1 project has been approved by the relevant state departments, and scientific research, production, construction, and marketing related to the HD-1 project are progressing steadily.
In addition to the HD-1 project, the company has also been involved in two major areas of intelligent ammunition equipment and individual combat equipment, and the integration of products in these two areas is being promoted.
Profit forecast and estimation recommendations.
We expect the EPS of the Grand Blast from 2019 to 2021 to be 0.
Combining with the estimates of comparable companies, we give Hongda Blast a PE estimate of 38-43 times in 2019, corresponding to a reasonable value range of 15.
63 yuan, given a “preliminary market” rating.
The risks of macroeconomic cycles and changes in industrial policies.
Risk of commodity price fluctuations.
Risk of fragmentation of the civilian explosive equipment market.
The risk of talent competition.
The production risk and sales price of civilian explosive equipment are subject to industry risks controlled by the state.
Production safety risks.
HD-1 Project Progress Risk.