KinLong(SZ:002791) Western Securities·2025-11-06 07:35Investment Rating - The report maintains an "Accumulate" rating for the company [4][6]. Core Views - The company has shown a narrowing decline in revenue and an improvement in profit margins, indicating relatively stable operational quality [2][3]. - The overall construction industry is experiencing a weak recovery, with market demand shrinking and competition intensifying, which continues to pressure the company's domestic business closely tied to real estate [2][3]. - The company is expected to expand its channels, product categories, and overseas business, with significant potential for profit recovery after cost control measures [4]. Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 4.297 billion yuan, a year-on-year decline of 12.50%, and a net profit attributable to shareholders of 17 million yuan, down 49.61% year-on-year [1][6]. - In Q3 alone, the company reported revenue of 1.542 billion yuan, a decrease of 9.31% year-on-year, while net profit increased by 67.98% to 47 million yuan [1][2]. - The gross profit margin for the first three quarters decreased by 1.02 percentage points to 30.28%, while the net profit margin fell by 0.91 percentage points to 0.19% [3][10]. - The company’s operating cash flow was slightly down, with accounts receivable decreasing by 18.64% year-on-year, and the debt ratio also declined [3][10]. Earnings Forecast - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.23 billion yuan, 0.42 billion yuan, and 0.59 billion yuan respectively [4][10].