KinLong(SZ:002791) Soochow Securities·2024-09-02 22:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 3.21 billion yuan in H1 2024, a year-on-year decrease of 4.35%, with a net profit attributable to shareholders of 4.89 million yuan, down 62.02% year-on-year. In Q2 2024, revenue was 1.84 billion yuan, a decline of 7.86%, and net profit was 50.76 million yuan, down 26.36% year-on-year [2] - Despite a weak market demand, the company has actively developed new scenarios and expanded into new markets, resulting in a revenue decline that is significantly less than the overall industry downturn [2] - The gross profit margin remained stable year-on-year at 31.27%, with a slight increase of 0.08 percentage points. The sales expenses were slightly diluted [2] - The company has reduced cash payments, leading to a year-on-year increase in operating cash flow, with a net cash flow from operating activities of -190 million yuan, an increase of 55.65% year-on-year [2] Financial Forecasts and Valuation - The company has adjusted its net profit forecasts for 2024-2026 to 274 million yuan, 379 million yuan, and 482 million yuan, respectively, with corresponding P/E ratios of 26X, 19X, and 15X. The rating remains "Buy" due to the potential for performance recovery and improvement in operational efficiency [3]