L&K(SH:603929) Haitong Securities·2024-07-30 06:31Investment Rating - The investment rating for the company is "Outperform the Market" [13][16]. Core Views - The company is a leading enterprise in high-end cleanroom engineering, benefiting from a favorable demand environment and experiencing significant growth in both revenue and orders [3][16]. - The company has a strong market position with a stable customer base and is actively expanding its overseas presence, which is expected to contribute to continued high growth in performance and order volume [16][19]. Financial Summary - Revenue is projected to grow from 3,201 million yuan in 2023 to 6,338 million yuan in 2024, reflecting a year-on-year growth of 98.0% [4][20]. - Net profit is expected to increase from 287 million yuan in 2023 to 579 million yuan in 2024, representing a year-on-year growth of 102.0% [4][20]. - The company’s gross margin is anticipated to remain stable at around 14% from 2024 to 2026 [6][20]. Business Performance - The company secured a significant project in Singapore worth 4.568 billion yuan, with expected revenue contributions of 2-3 billion yuan in 2024 [6]. - The company’s new orders reached 7.159 billion yuan in 2023, a year-on-year increase of 79.89%, with a backlog of approximately 5.607 billion yuan, which is 1.75 times its 2023 revenue [16][19]. - The cleanroom market in China is projected to exceed 570 billion yuan by 2029, with a compound annual growth rate (CAGR) of about 15% over the next five years [16]. Valuation - The estimated earnings per share (EPS) for 2024 and 2025 are projected to be 2.72 yuan and 2.58 yuan, respectively [16]. - The reasonable price range for the stock is estimated to be between 29.87 yuan and 32.59 yuan based on a price-to-earnings (P/E) ratio of 11-12 times for 2024 [16].