L&K(SH:603929) NORTHEAST SECURITIES·2026-03-20 07:13Investment Rating - The report assigns a "Buy" rating to the company, indicating a strong expectation for stock price appreciation exceeding 15% over the next six months [5]. Core Insights - The company's revenue for 2025 was CNY 4.907 billion, a year-on-year decrease of 8.81%, while the net profit attributable to shareholders was CNY 892 million, reflecting a significant year-on-year increase of 40.30% due to the ongoing progress and large orders from the Singapore project [1][3]. - The gross margin for 2025 was 24.57%, up 11.02 percentage points year-on-year, and the net margin was 18.06%, an increase of 6.27 percentage points year-on-year [2]. - The company has a strong order backlog, with new orders amounting to CNY 7.1 billion, a 97% increase year-on-year, and an unrecognized portion of ongoing projects valued at CNY 4.8 billion [3]. Financial Summary - The company reported a basic earnings per share (EPS) of CNY 4.18 for 2025, with forecasts for EPS of CNY 7.34, CNY 10.62, and CNY 12.26 for 2026, 2027, and 2028 respectively [4][10]. - The projected revenue for 2026, 2027, and 2028 is CNY 8.029 billion, CNY 11.004 billion, and CNY 12.271 billion, representing year-on-year growth rates of 63.63%, 37.06%, and 11.52% respectively [3][10]. - The company maintains a healthy cash position with CNY 3.68 billion in cash at the end of 2025 and plans to distribute a cash dividend of CNY 1.65 per share, corresponding to a dividend yield of 2.8% [2][10].