Soochow Securities·2025-10-27 10:07Investment Rating - The investment rating for Longking Environmental (龙净环保) is "Buy" (maintained) [1] Core Views - Zijin Mining plans to fully subscribe to Longking Environmental's private placement, enhancing its growth potential [9] - The company is expected to see accelerated growth due to the cash infusion from Zijin Mining, which will improve its capital structure and financial condition [9] - The diluted EPS impact from the private placement is limited, with Zijin Mining committing not to reduce its holdings, indicating confidence in the company's future [9] - The green electricity and energy storage sectors have shown significant contributions to the company's performance in 2025 [9] - The environmental protection segment remains stable with a robust order book and accelerated revenue recognition [9] - Profit forecasts for 2025-2027 are maintained at 1.23 billion, 1.53 billion, and 1.75 billion RMB respectively, with corresponding P/E ratios of 16.3, 13.2, and 11.5 [9] Financial Summary - Total revenue for 2023 is projected at 10,973 million RMB, with a year-on-year decrease of 7.64% [1] - Net profit attributable to shareholders for 2023 is estimated at 508.97 million RMB, reflecting a year-on-year decline of 36.74% [1] - The latest diluted EPS for 2023 is forecasted at 0.40 RMB per share [1] - The company’s total assets are expected to reach 26,792 million RMB in 2024, increasing to 37,179 million RMB by 2027 [10] - The debt-to-asset ratio is projected to be 62.01% in 2023, indicating a relatively high level of leverage [7]