LK(SH:600388) Changjiang Securities·2024-07-23 13:31Investment Rating - The investment rating for the company is "Buy" and is maintained [18]. Core Views - The successful commissioning of the 300MW photovoltaic project in Xinjiang marks a significant milestone for the company's green electricity business, demonstrating its commercial viability [24][25]. - The project is expected to generate annual operating revenue of 1.26 billion yuan and a net profit of 430 million yuan, contributing positively to the company's financial performance [14]. - The company has a dual-driven strategy focusing on "environmental protection + new energy," with strong order acquisition capabilities in its core business and ongoing expansion in the green electricity and energy storage sectors [16]. Summary by Sections Project Overview - The first phase of the Kizilsu project is expected to supply 460 million kWh of electricity annually, significantly reducing coal consumption and CO2 emissions [25]. - The project is designed to meet the electricity needs of Xinjiang Zijin Mining and is part of a larger plan that could reach a total capacity of 1GW [25]. Financial Projections - The company forecasts net profits of 1.11 billion yuan, 1.40 billion yuan, and 1.71 billion yuan for the years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 117.7%, 26.5%, and 21.7% [16]. - The projected PE ratios for the same years are 11.4x, 9.0x, and 7.4x, indicating a favorable valuation outlook [16]. Market Activity - The company has engaged in related transactions involving the sale of green energy mining equipment, with expected revenue of up to 370 million yuan in 2024 [15]. - The company has seen significant shareholding increases from its major shareholder, Zijin Mining, which enhances operational synergy and long-term growth prospects [15].