L&K(SH:603929) Guoxin Securities·2025-03-14 03:42Investment Rating - The report maintains an "Outperform the Market" rating for the company [3][22][28] Core Views - The company achieved significant revenue and profit growth in 2024, with operating income reaching 5.38 billion yuan, up 68.1% year-on-year, and net profit attributable to shareholders at 636 million yuan, up 121.6% year-on-year [1][3][7] - The company is benefiting from the expansion demand in the semiconductor industry in China and Southeast Asia, with a strong pipeline of projects and successful bids for major contracts [3][22] - The company’s cash flow from operating activities increased significantly, reaching 1.6 billion yuan, which is 2.5 times the net profit attributable to shareholders, indicating strong cash collection from projects [1][15] Financial Performance Summary - In 2024, the company’s revenue was 5.38 billion yuan, with a gross margin of 14.0% and a net profit margin of 11.8%, reflecting a 2.8 percentage point increase in net profit margin year-on-year [8][15] - The company’s new contract value in 2024 was 3.61 billion yuan, down 49.6% year-on-year, but the overall trend of new orders is upward when excluding the impact of a major project from 2023 [2][17] - The company forecasts net profits for 2025-2027 to be 411 million, 530 million, and 651 million yuan respectively, with earnings per share projected at 1.93, 2.49, and 3.05 yuan [3][4][22] Project and Order Status - The company has a backlog of 3.03 billion yuan in signed but uncompleted contracts at the end of 2024, down 45.9% year-on-year [2][17] - The successful bid for the Singapore VSMC plant system project worth 630 million yuan is expected to contribute to overseas business volume [2][17] - The company is nearing completion of the major UMC Singapore project, with 830 million yuan in unrecognized revenue remaining, which is expected to contribute 175 million yuan to net profit in 2025 [2][17] Cash Flow and Dividends - The company plans to distribute a cash dividend of 213 million yuan for the 2024 fiscal year, maintaining a high payout ratio of 33.5% [19][22] - The cash reserves at the end of 2024 reached 2.48 billion yuan, up 129% year-on-year, supporting future dividend payments [15][19]