LK(SH:600388) Guotai Junan Securities·2024-04-14 16:00Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price of 18.41 CNY, while the current price is 13.62 CNY [2][23]. Core Views - The company is significantly undervalued, and as its transformation logic gradually materializes, its performance is expected to exceed expectations [23]. - The controlling shareholder, Zijin Mining Group, has been actively increasing its stake in the company, demonstrating confidence in its future [23]. - The company has completed a share buyback of 7.51 million shares at an average price of 12.30 CNY per share, which is intended for employee stock ownership plans or equity incentives [16][23]. Summary by Sections Financial Performance - The projected net profits for 2024, 2025, and 2026 are 1.414 billion, 1.705 billion, and 2.107 billion CNY, respectively, corresponding to EPS of 1.31, 1.58, and 1.95 CNY [23]. New Energy Business - The company is advancing its clean energy projects, with nearly 1 GW of wind and solar projects under construction, expected to commence operations in 2024 [23]. - The company has launched its first 2 GWh PACK production line for energy storage and has successfully started a 5 GWh lithium iron phosphate energy storage cell project [23]. Traditional Environmental Business - The company secured new environmental engineering contracts worth 10.287 billion CNY in 2023, marking a 5% year-on-year increase, with a total of 18.51 billion CNY in hand [23].