LK(SH:600388) Guotai Junan Securities·2024-06-19 07:01Investment Rating - The report assigns a rating of "Accumulate" to the company, maintaining the previous rating of "Accumulate" [3][4]. Core Views - The company is significantly undervalued, and as the transformation logic gradually materializes, performance is expected to exceed expectations. The forecasted net profits for 2024-2026 are 1.414 billion, 1.705 billion, and 2.107 billion yuan, respectively, corresponding to EPS of 1.31, 1.58, and 1.95 yuan. The target price remains at 18.10 yuan [4]. Summary by Sections Company Overview - The company plans to sell green energy mining equipment, including "pure electric mining trucks" and "pure electric vehicle charging and swapping stations," to its controlling shareholder, Zijin Mining, marking the first step in establishing a comprehensive mining system solution [3][4]. Business Development - The company is benefiting from the transition to electric mining trucks, which can significantly reduce carbon emissions. For instance, the carbon emissions per ton-kilometer for electric trucks are 25.6% lower than traditional diesel trucks, and operational costs can decrease by 50%-60% [4]. - The company has a solid position in the flue gas treatment and thermal power auxiliary machinery sectors, with a backlog of environmental engineering contracts amounting to 18.36 billion yuan, ensuring stable growth [4]. - The company is actively advancing its renewable energy business, with nearly 1 GW of wind and solar green electricity projects under construction and ongoing projects in both domestic and overseas markets [4]. Shareholder Confidence - Zijin Mining has been increasing its stake in the company, acquiring a total of 68.98 million shares, representing 6.38% of the total share capital, which reflects strong confidence in the company's future [4].