L&K(603929) 兴业证券·2025-02-27 07:53Company Rating - Investment Rating: "Buy" (Maintain) [1] Core Views - The company is a leading provider of cleanroom system integration engineering solutions, leveraging its Taiwanese background to expand in domestic and international markets. The company reported significant revenue and profit growth in 2024, with revenues of 44.18 billion yuan and a net profit of 4.39 billion yuan, representing year-on-year increases of 143.31% and 92.12% respectively [3][9][19]. Summary by Sections Company Overview - The company specializes in cleanroom engineering for high-tech industries such as IC semiconductors and optoelectronics, providing comprehensive services including planning, design, equipment configuration, and maintenance. It has a strong Taiwanese shareholder base, which provides technical support and brand advantages [7][9]. Financial Performance - The company has shown a remarkable recovery since 2020, with a significant increase in revenue and net profit since 2022. The projected revenues for 2024-2026 are 53.98 billion yuan, 60.88 billion yuan, and 66.90 billion yuan, respectively, with net profits of 6.26 billion yuan, 6.95 billion yuan, and 7.59 billion yuan [4][9][19]. Industry Outlook - The semiconductor industry is expected to continue its growth, driven by increasing domestic demand and the acceleration of chip localization. The total sales of semiconductors in China are projected to reach 181.92 billion USD in 2024, a year-on-year increase of 19.83% [23][25][27]. Competitive Advantages - The company possesses a strong technical edge with 90 valid patents and established long-term relationships with key clients in the semiconductor industry, enhancing its market position. The company has also improved its cash flow significantly, with a net operating cash flow of 1.343 billion yuan in Q3 2024, a 53.39% increase year-on-year [3][19][38]. Investment Value - The company maintains a high dividend payout ratio, with a cash dividend ratio of 74.37% in 2023, and a projected dividend yield of 2.99% as of February 24, 2025. This indicates a strong investment value as the company continues to grow its profits [3][44].