KTK GROUP(SH:603680) Donghai Securities·2026-01-23 00:20Investment Rating - The report maintains an "Increase" rating for the company, indicating a positive outlook for the stock price relative to the market index [6]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of between 540 million to 620 million yuan in 2025, representing a year-on-year growth of 78.77% to 105.25% [6]. - The demand for rail transit vehicles is anticipated to rise due to large-scale tenders for the Fuxing high-speed trains, with significant procurement planned by the China State Railway Group [6]. - The company has established a comprehensive service capability from design and development to manufacturing and maintenance, covering over a thousand subcategories of rail transit vehicle components [6]. - The railway transportation capacity is set to upgrade, with plans for new railway lines and high-speed rail expansions, which will drive the market for vehicle components [6]. - The company is actively involved in the research and production of new models, enhancing product innovation and maintenance demand as vehicles age [6]. - The company has invested in emerging industries through its subsidiary, indicating a strategic expansion into new markets [6]. Financial Summary - Total revenue is projected to reach 4,499.39 million yuan in 2024, with a growth rate of 21.69%, and is expected to increase to 5,462 million yuan in 2025 [5]. - The net profit attributable to shareholders is forecasted to be 302.07 million yuan in 2024, growing to 550.58 million yuan in 2025, reflecting an 82.27% increase [5]. - The earnings per share (EPS) is expected to rise from 0.39 yuan in 2024 to 0.70 yuan in 2025, with a corresponding price-to-earnings (P/E) ratio of 22.56 [5].