LK(600388) Soochow Securities·2025-04-16 10:23Investment Rating - The report maintains a "Buy" rating for Longking Environmental (龙净环保) [1] Core Views - The company experienced a revenue decline of 13.69% year-on-year in Q1 2025, with total revenue reaching 1.966 billion yuan. However, the gross profit margin improved by 3.22 percentage points to 25.49% [8] - New signed orders increased by 13.59% year-on-year, totaling 2.625 billion yuan in Q1 2025, contributing to an increase in backlog orders to 19.421 billion yuan as of March 31, 2025 [8] - The company effectively managed expenses, with total period expenses decreasing by 3.25% year-on-year to 281 million yuan [8] - The company is expanding its green mining business, with significant projects in renewable energy and storage systems contributing to future growth [8] Financial Summary - Revenue projections for Longking Environmental are as follows: 10.019 billion yuan in 2024, 12.097 billion yuan in 2025, 13.285 billion yuan in 2026, and 14.299 billion yuan in 2027, reflecting a growth rate of 20.74% in 2025 [1][9] - The forecasted net profit attributable to shareholders is 830 million yuan in 2024, 1.232 billion yuan in 2025, 1.525 billion yuan in 2026, and 1.746 billion yuan in 2027, with a growth rate of 48.33% in 2025 [1][9] - The earnings per share (EPS) are projected to be 0.65 yuan in 2024, 0.97 yuan in 2025, 1.20 yuan in 2026, and 1.37 yuan in 2027 [1][9] - The price-to-earnings (P/E) ratio is expected to decrease from 17.73 in 2024 to 11.95 in 2025, indicating improved valuation [1][9]