LK(SH:600388) Changjiang Securities·2024-06-20 03:31Investment Rating - The report maintains a "Buy" rating for the company [11][43]. Core Viewpoints - The company has a dual-driven strategy focusing on "environmental protection + new energy," with strong order acquisition capabilities in its main business and green electricity starting to contribute to performance [11][43]. - The company has signed over 2GW of green electricity projects in 2023, with more than 27 projects under construction, indicating robust growth potential in the renewable energy sector [6][11]. - The company is expanding into the mining equipment sector, leveraging its relationship with its controlling shareholder, Zijin Mining, to enhance its green energy offerings [43][44]. Financial Performance and Forecast - The company is expected to achieve net profits attributable to shareholders of 1.15 billion, 1.47 billion, and 1.72 billion yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth of 126.2%, 27.3%, and 17.5% [11][18]. - Revenue projections for the company are 10.97 billion, 13.28 billion, 15.31 billion, and 16.71 billion yuan for 2024 to 2026, with a gross profit margin expected to improve from 24% to 26% over the same period [11][18]. - The company has a strong order backlog in the environmental protection sector, with contracts totaling 18.36 billion yuan as of the end of Q1 2024, reflecting improved order quality [44]. Market Position and Competitive Landscape - The energy storage industry is becoming increasingly competitive, with many companies entering the field, which may lead to significant fluctuations in profit levels [10][11]. - The company is well-positioned to capitalize on the trend of transitioning from diesel to electric vehicles in mining operations, aligning with the broader "dual carbon" strategy [43][44].