LK(600388) Soochow Securities·2025-04-16 09:59Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue decline but an increase in gross margin, with new orders and backlog orders on the rise [8] - The first quarter of 2025 saw a revenue of 1.966 billion yuan, a year-on-year decrease of 13.69%, while the net profit attributable to shareholders was 185 million yuan, down 6.95% year-on-year [8] - The company signed new environmental engineering contracts worth 2.625 billion yuan in Q1 2025, a year-on-year increase of 13.59% [8] - The gross margin for Q1 2025 was 25.49%, an increase of 3.22 percentage points year-on-year [8] - The company has a strong order backlog of 19.421 billion yuan as of March 31, 2025, up from 18.739 billion yuan at the end of 2024 [8] - The company is expanding its green mining business, with significant contributions from renewable energy projects [8] Financial Summary - Revenue projections for 2023A, 2024A, 2025E, 2026E, and 2027E are 10,973 million, 10,019 million, 12,097 million, 13,285 million, and 14,299 million yuan respectively, with a projected growth rate of 20.74% in 2025 [1] - Net profit attributable to shareholders is forecasted to be 508.97 million, 830.40 million, 1,231.75 million, 1,525.37 million, and 1,745.88 million yuan for the same years, with a growth rate of 48.33% in 2025 [1] - The latest diluted EPS is projected to be 0.40, 0.65, 0.97, 1.20, and 1.37 yuan per share for the years 2023A to 2027E [1] - The P/E ratio is expected to decrease from 28.92 in 2023A to 8.43 in 2027E [1]