KTK GROUP(SH:603680) China Post Securities·2025-09-09 07:08Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative increase in stock price between 10% and 20% over the next six months [5][10]. Core Insights - The company experienced explosive growth in the first half of 2025, driven by a surge in demand for train sets, achieving a revenue of 2.512 billion yuan, a year-on-year increase of 28%, and a net profit attributable to shareholders of 367 million yuan, up 149% [3][4]. - The company's profitability significantly improved due to changes in product structure and effective cost control, with a gross margin of 29.50%, an increase of 3.94 percentage points, and a net profit margin of 14.68%, up 7.62 percentage points [4]. - The long-term goals for railway construction are clear, with a high volume of new train set tenders continuing, indicating sustained market demand [4]. Financial Performance and Forecast - The company is projected to achieve revenues of 5.752 billion yuan, 6.709 billion yuan, and 7.416 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 27.84%, 16.64%, and 10.54% [5][8]. - The net profit attributable to shareholders is expected to reach 762 million yuan, 857 million yuan, and 972 million yuan for the same years, with growth rates of 152.25%, 12.51%, and 13.40% respectively [5][8]. - The report provides a projected PE ratio of 13.40, 11.91, and 10.50 for the years 2025, 2026, and 2027 [5][8].