Linewell(603636) 群益证券·2025-01-21 07:28Investment Rating - The report maintains a "Buy" recommendation for the company, indicating a potential upside in the stock price [4][6]. Core Insights - The company is expected to report a net loss of RMB 2.44 to 2.92 billion for 2024, slightly below expectations, but the outlook remains positive due to improving cash collection and anticipated performance in Q1 2025 [6][8]. - The company has a high proportion of accounts receivable, which has been positively impacted by debt relief policies, leading to a decrease in accounts receivable by nearly RMB 500 million since the beginning of the year [8]. - The company has a strong order backlog of RMB 2.253 billion and completed projects awaiting acceptance worth RMB 348 million, providing profit assurance for 2025 [8]. Financial Summary - The company's projected net profit for 2024 is expected to be a loss of RMB 288 million, with a recovery to a profit of RMB 114.9 million in 2025 and RMB 225.08 million in 2026, reflecting year-on-year growth rates of -613%, +140%, and +96% respectively [7][8]. - The earnings per share (EPS) are projected to be -0.50 RMB for 2024, 0.20 RMB for 2025, and 0.39 RMB for 2026, with corresponding price-to-earnings (P/E) ratios of 54 and 28 for 2025 and 2026 respectively [7][8]. - The company’s revenue is forecasted to decline from RMB 1.061 billion in 2024 to RMB 1.530 billion in 2025, and further to RMB 1.841 billion in 2026 [7][8].