L&K(SH:603929) GOLDEN SUN SECURITIES·2025-11-03 07:30Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company achieved a significant year-on-year revenue growth of 40% in Q3, exceeding expectations, with total revenue for the first three quarters of 2025 reaching 3.1 billion yuan, a decrease of 30% year-on-year, while net profit attributable to the parent company was 440 million yuan, an increase of 0.8% [1][2]. - The improvement in gross margin, which increased by 11 percentage points in Q3, has significantly enhanced the company's profitability, driven by the favorable profitability of overseas large orders [2][3]. - The company has a robust order backlog, with approximately 6.7 billion yuan in uncompleted contracts expected to support significant revenue growth in the coming year as these projects enter the construction phase [3]. Summary by Sections Financial Performance - For Q1-Q3 2025, the company reported total revenue of 3.1 billion yuan, down 30% year-on-year, with quarterly revenues of 840 million, 850 million, and 1.43 billion yuan respectively [1]. - The net profit attributable to the parent company for the same period was 440 million yuan, reflecting a 0.8% increase year-on-year, with a notable 40% increase in Q3 [1][2]. - The comprehensive gross margin for Q1-Q3 was 21.76%, up 8.8 percentage points year-on-year, with a Q3 gross margin increase of 11 percentage points [2]. Order Backlog and Future Outlook - As of the end of 2024, the company disclosed an uncompleted order amount of approximately 3 billion yuan, with significant new contracts won in 2025, including a 3.2 billion yuan project and a 1.58 billion yuan project [3]. - The company is expected to benefit from the growing demand for AI computing power, which is driving semiconductor capital expenditure recovery, leading to sustained overseas order growth [3]. Profitability and Valuation - The report projects net profits for 2025-2027 to be 735 million, 994 million, and 1.27 billion yuan respectively, with corresponding EPS of 3.44, 4.66, and 5.95 yuan per share [4]. - The current stock price corresponds to a P/E ratio of 12, 9, and 7 times for the years 2025, 2026, and 2027 respectively, indicating attractive valuation levels [4].