L&K(SH:603929) Xin Lang Cai Jing·2025-10-31 06:34Core Viewpoint - The company reported strong Q3 results, with revenue of 1.425 billion yuan, a year-over-year decrease of 9.05% but a quarter-over-quarter increase of 68.04%. Net profit attributable to shareholders was 282 million yuan, up 39.58% year-over-year and 256.85% quarter-over-quarter, exceeding previous expectations due to the commencement of order settlements in the Singapore market and better-than-expected gross margins [1] Financial Performance - For the first three quarters, total revenue reached 3.109 billion yuan, down 29.63% year-over-year, while net profit attributable to shareholders was 442 million yuan, a slight increase of 0.78% year-over-year. The net profit excluding non-recurring items was 441 million yuan, up 0.80% year-over-year [1] - The company's overall gross margin for the first three quarters was 21.76%, an increase of 8.81 percentage points year-over-year. In Q3 alone, the gross margin was 27.51%, up 11.00 percentage points year-over-year and 7.14 percentage points quarter-over-quarter [2] Cost Management - Operating expenses for the first three quarters totaled 102 million yuan, an increase of 8.3% year-over-year, with an expense ratio of 3.29%, up 1.15 percentage points year-over-year. In Q3, operating expenses decreased by 69.6% to 17 million yuan, with an expense ratio of 1.18%, down 2.34 percentage points year-over-year [2] Asset Management - In Q3, the company recorded asset and credit impairment losses of 37 million yuan, an increase of 80 million yuan year-over-year, primarily due to the increase in accounts receivable as projects entered the execution phase. As of the end of Q3, the net value of accounts receivable was 774 million yuan, up 97.7% from the end of Q2 [3] - The company achieved operating cash flow of 1.07 billion yuan for the first three quarters, a decrease of 20.3% year-over-year, but Q3 operating cash flow was 193 million yuan, up 5.0% year-over-year. Cash and cash equivalents at the end of Q3 were 3.062 billion yuan, an increase of 578 million yuan from the end of 2024 [3] Profit Forecast and Valuation - Due to better-than-expected gross margins in the Singapore market, the company raised its net profit forecasts for 2025-2027 by 35.24%, 23.96%, and 49.24% to 738 million, 920 million, and 1.164 billion yuan, respectively, with a three-year compound growth rate of 22.33%. The expected EPS for these years is 3.46, 4.31, and 5.46 yuan [4] - For Q4, the company anticipates revenue of 2.39 billion yuan, a year-over-year increase of 148% and a quarter-over-quarter increase of 42%, as major projects enter the settlement phase [4] - The target price has been adjusted to 64.65 yuan, reflecting a 15 times PE valuation for 2026, up from a previous target of 45.24 yuan [4]