LK(SH:600388) China Post Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company [20][8]. Core Insights - The company's 2023 revenue was 10.973 billion yuan, a year-on-year decrease of 7.64%, while the net profit attributable to shareholders was 509 million yuan, down 36.74% year-on-year [7][9]. - The decline in net profit was primarily due to a goodwill impairment provision of 361 million yuan and construction period expenses of approximately 80 million yuan related to the new energy business [7][9]. - The company has a solid order backlog in its environmental business, with new contracts amounting to 10.287 billion yuan in 2023, a year-on-year increase of 5.11% [7][9]. - The energy storage business has begun to gain traction, with significant contracts worth over 1.5 billion yuan secured [7][9]. Financial Summary - The company's projected net profits for 2024, 2025, and 2026 are 1.135 billion yuan, 1.458 billion yuan, and 1.915 billion yuan, respectively, with corresponding EPS of 1.05, 1.35, and 1.77 yuan [8][9]. - The company’s PE ratios for the same years are projected to be 12.19, 9.49, and 7.23 times [8][9]. - The total assets are expected to grow from 25.297 billion yuan in 2023 to 42.670 billion yuan by 2026 [10][9].