KinLong(002791) 长江证券·2025-04-02 04:42Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved an annual revenue of 6.6 billion yuan, a year-on-year decrease of 15%, with a net profit attributable to shareholders of 90 million yuan, down 72% year-on-year [2][4]. - The company is transitioning from an expansion phase to an optimization phase, focusing on strategic positioning as an integrated supplier of building components, while also exploring overseas market opportunities [6]. - The company operates a direct sales model in the home building materials industry, which is sensitive to external economic conditions, leading to revenue volatility [6]. Financial Performance - In Q4, the company reported revenue of 1.73 billion yuan, a year-on-year decline of 23%, with a net profit of approximately 60 million yuan, down 68% year-on-year [2][4]. - The company's gross margin for 2024 was approximately 31.7%, a slight decrease of 0.6 percentage points year-on-year, with the core product, door and window hardware, maintaining relative stability [12]. - The cash flow remained strong, with a net cash inflow of 390 million yuan for the year, reflecting good operational quality [12]. Market Dynamics - The company faced revenue pressure due to a 28% year-on-year decline in construction area, impacting various product categories [12]. - The company’s revenue from the Hong Kong, Macau, and Taiwan markets, as well as overseas, was approximately 880 million yuan, a year-on-year increase of 15%, with a higher gross margin compared to the domestic market [12]. - The company plans to maintain a cautious approach in selecting investment targets to mitigate risks associated with long-term equity investments, which are projected to be around 400 million yuan by the end of 2024 [6].