LK(600388) 东吴证券·2024-08-26 15:42Investment Rating - The report maintains a "Buy" rating for Longking Environmental (龙净环保) [1] Core Views - The company reported a 33% increase in non-recurring net profit, with a robust order book in environmental protection and accelerated contributions from new energy [1] - In the first half of 2024, the company achieved revenue of 4.672 billion yuan, a decrease of 5.44% year-on-year, while the net profit attributable to shareholders was 431 million yuan, an increase of 0.8% year-on-year [1] - The company signed new environmental engineering contracts worth 5.527 billion yuan in the first half of 2024, with a total backlog of 19.538 billion yuan, indicating a continuous increase from the end of 2023 [1] Financial Performance - The company’s operating cash flow net amount was 532 million yuan, an increase of 488.85% year-on-year, while the investment cash flow net amount was -1.814 billion yuan, a decrease of 289.3% year-on-year [1] - The company’s total revenue is projected to grow from 10.973 billion yuan in 2023 to 14.312 billion yuan in 2024, representing a year-on-year growth of 30.44% [6] - The net profit attributable to shareholders is expected to increase from 509 million yuan in 2023 to 1.151 billion yuan in 2024, reflecting a growth rate of 126.14% [6] New Energy Development - The company is accelerating the construction and operation of green electricity projects, with significant projects in Tibet and Xinjiang successfully generating power [1] - The first phase of the Tibet Lagao power supply project, which includes 115MW of photovoltaic and 65MW/130MWh of electrochemical energy storage, is operational [1] - The company is also focusing on the green transformation of mining equipment, leveraging opportunities from the transition to electric mining vehicles [1]