LK(600388) Soochow Securities·2025-01-21 00:00Investment Rating - The report maintains a "Buy" rating for Longking Environmental [1][11] Core Views - Longking Environmental is expanding its green mining equipment demand, driven by the acquisition of a 15.87% stake in Hunan Chuangyuan, enhancing its layout in the new energy mining equipment business [3] - The company anticipates significant growth in its revenue and net profit, with a projected net profit of 1.15 billion in 2024, representing a year-on-year increase of 126% [11] - The demand for green mining solutions is expected to grow alongside Zijin Mining's acquisition of a controlling stake in Cangge Mining, which will enhance the copper, lithium, and potassium mineral resources [10] Financial Summary - Total revenue is projected to increase from 10.97 billion in 2023 to 18.08 billion by 2026, with a compound annual growth rate (CAGR) of approximately 13.10% [1][12] - The net profit is expected to rise from 508.97 million in 2023 to 2.03 billion in 2026, reflecting a CAGR of 37.25% [1][12] - The earnings per share (EPS) is forecasted to grow from 0.40 in 2023 to 1.60 in 2026, indicating strong profitability growth [1][12] Market Data - The closing price of Longking Environmental is 11.90, with a market capitalization of approximately 15.11 billion [7] - The price-to-earnings (P/E) ratio is projected to decrease from 30.12 in 2023 to 7.56 in 2026, suggesting an attractive valuation as earnings grow [1][12]