Luenmei Quantum (600167) 华源证券·2025-03-12 04:59Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for investment [5][9]. Core Views - The company operates dual main businesses in heating and media, both of which are cash cow assets. It is a core listed company under the Lianmei Group, which encompasses various sectors including comprehensive energy, real estate, and new energy [8][15]. - The company has a strong cash flow position, with net cash of 5 billion RMB after accounting for interest-bearing liabilities, suggesting a solid financial foundation for future investments [11][29]. - The earnings forecast for the company indicates a gradual recovery in net profit, with projections of 758 million RMB, 820 million RMB, and 872 million RMB for 2024, 2025, and 2026 respectively [7][33]. Summary by Sections Market Performance - As of March 10, 2025, the closing price of the company's stock is 5.68 RMB, with a market capitalization of approximately 12.85 billion RMB [3]. Financial Data - The company has a total share capital of 2,262.84 million shares and a debt-to-asset ratio of 29.32% [3]. Business Overview - The heating business is primarily conducted through three wholly-owned subsidiaries located in Shenyang, providing clean heating services to residential and commercial sectors. The media business, acquired in 2018, focuses on high-speed rail media and has expanded its reach across 31 provincial-level administrative regions [8][24]. Profitability and Valuation - The company is expected to maintain a dividend payout ratio of over 50% from 2022 to 2024, with a reasonable overall valuation despite a higher price-to-earnings (P/E) ratio compared to peers [9][33]. - The projected P/E ratios for 2024, 2025, and 2026 are 17, 16, and 15 respectively, indicating a stable valuation outlook [9][37]. Cash Flow Analysis - The company has shown significant improvement in free cash flow due to reduced capital expenditures and strong operational cash flow, which is expected to continue as the heating network matures [28][29].