LK(600388) GOLDEN SUN SECURITIES·2024-10-27 04:10Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance [3]. Core Views - The company has shown continuous growth in net profit, with a net profit of 650 million yuan for the first three quarters of 2024, reflecting a year-on-year increase of 0.9% [1]. - The company's gross margin improved to 24.4% in the first three quarters of 2024, up by 0.7 percentage points year-on-year, indicating enhanced profitability [1]. - The environmental protection business remains a solid foundation for the company, with new contracts totaling 7.54 billion yuan in the first three quarters of 2024, primarily from the power industry [1]. - The company is actively pursuing opportunities in the renewable energy sector, with several projects in various stages of development, including solar and lithium mining projects [1]. Financial Performance Summary - For 2024, the company is projected to achieve total revenue of 12.703 billion yuan, a year-on-year growth of 15.8% [2]. - The net profit for 2024 is expected to reach 990 million yuan, representing a significant increase of 94.5% compared to the previous year [2]. - The earnings per share (EPS) is forecasted to be 0.92 yuan for 2024, with a projected price-to-earnings (P/E) ratio of 14.3 times [2]. - The company’s operating cash flow for 2024 is anticipated to be 2.681 billion yuan, reflecting a strong operational performance [8].