KinLong(002791) GOLDEN SUN SECURITIES·2024-10-31 05:14Investment Rating - The report maintains a "Buy" rating for the company [3][11]. Core Views - The company has experienced a significant decline in revenue and net profit in the first three quarters of 2024, with revenue down 11.51% year-on-year to 4.91 billion yuan and net profit down 77.22% to 32.87 million yuan [1]. - Despite the overall decline, the company’s engineering products have shown growth, particularly in overseas markets, with overall growth exceeding 10% and specific regions like India and the Middle East showing growth rates above 20% and 40% respectively [1]. - The company is focusing on cash flow management and has successfully reduced accounts receivable by 9.9% year-on-year, indicating a strong emphasis on financial health [1]. Financial Performance Summary - Revenue for 2024 is projected to be 6.87 billion yuan, reflecting a year-on-year decline of 11.9% [2]. - The net profit for 2024 is expected to be 72 million yuan, a decrease of 77.6% compared to the previous year [2]. - The company’s gross margin is relatively stable, with a slight decrease to 31.3% in 2024 [6]. - The operating cash flow for 2023 was 499 million yuan, indicating a focus on maintaining positive cash flow despite profitability challenges [7]. Market and Strategic Outlook - The company plans to enhance its presence in both domestic and international markets, particularly focusing on new scenarios such as schools and hospitals, which are less dependent on the real estate market [1]. - The report suggests that the company’s risk resilience and growth potential are expected to improve as it adapts to current market conditions [1].