Huaxi Securities: HUHUA achieved its best historical performance in Q2, maintaining an "Overweight" rating

Huaxi Securities research report points out that HUHUA is expected to achieve a net profit attributable to the parent company of 90-115 million yuan in the first half of the year, a year-on-year increase of 43.91%-83.89%; based on the forecast median, it is expected to achieve a net profit attributable to the parent company of 102.5 million yuan in the first half of the year, with an estimated net profit attributable to the parent company of 80 million yuan in Q2, creating the best performance in history. The significant profit growth is mainly due to the favorable market conditions, with substantial increases in sales of the company's products such as detonators, explosives, and blasting devices, as well as an increase in blasting services for national key engineering projects. The company currently has a blasting device production capacity of 2,300 tons, with strong demand in overseas markets leading to supply shortages. According to "HUHUA Information," on July 9, the company received approval for a new blasting device production capacity of 2,000 tons, specifically for export, and the new capacity is expected to continue to meet the strong overseas demand, enhancing the company's performance. In addition, the group recently signed a strategic cooperation framework agreement with China Railway 19th Bureau. In the future, both parties will deepen cooperation in various mining engineering bidding and project contracting, especially in jointly participating in major project construction in Tibet and Xinjiang. Maintain "Overweight" rating