L&K(603929) 兴业证券·2025-02-17 02:52Investment Rating - The investment rating for the company is "Accumulate" (首次) [1] Core Views - The company is expected to achieve significant revenue and profit growth in 2024, driven by the ongoing Singapore UMC project, with projected revenue between 5.166 billion to 5.597 billion yuan, representing a year-on-year increase of 61.39% to 74.84% [3] - The net profit attributable to shareholders is expected to be between 611 million to 662 million yuan, reflecting a year-on-year growth of 112.90% to 130.64% [3] - The company has established long-term partnerships with high-quality clients, enhancing its competitive advantage [4] - The domestic and overseas markets are expected to continue driving growth, with significant contributions from the semiconductor industry [5] - The company has shown improvement in cash flow and maintains a high dividend payout ratio, indicating strong shareholder returns [6] Summary by Sections Financial Performance - For 2024, the company forecasts total revenue of 5.398 billion yuan, a 68.6% increase from 2023, and a net profit of 626 million yuan, a 118.2% increase [8] - The gross profit margin is projected to be 18.1% in 2024, up from 14.2% in 2023 [8] - Earnings per share (EPS) is expected to rise to 2.93 yuan in 2024, with a corresponding price-to-earnings (PE) ratio of 10.4 times [8] Market Position and Strategy - The company benefits from a dual-market strategy, with significant revenue contributions from both the domestic and Singaporean markets, accounting for 58.11% and 41.82% of total revenue, respectively [5] - The semiconductor industry in Singapore is robust, with a manufacturing output exceeding 1,330 billion SGD (approximately 1,010 billion USD), which is expected to drive demand for cleanroom engineering services [5] Cash Flow and Dividends - The company's operating cash flow improved significantly, with a net cash flow of 1.343 billion yuan in Q3 2024, a 53.39% increase year-on-year [6] - The dividend payout ratio has been consistently above 30%, reaching 74.37% in 2023, indicating a strong commitment to returning value to shareholders [6]