LK(600388) 东北证券·2025-04-16 09:13Investment Rating - The report maintains a "Neutral" rating for the company [6][17]. Core Insights - The company reported a revenue of 1.966 billion yuan in Q1 2025, a decrease of 13.69% year-on-year, while the net profit attributable to shareholders was 185 million yuan, down 6.95% year-on-year. However, the non-recurring net profit increased slightly by 0.50% year-on-year to 172 million yuan [1][2]. - The company saw a growth in environmental engineering contracts, with new contracts totaling 2.625 billion yuan, an increase of 13.59% year-on-year, and the total contracts on hand reached 19.421 billion yuan, up 5.81% year-on-year [3]. - The company is experiencing rapid growth in its new energy business, which generated revenue of 430 million yuan in 2024, a significant increase of 1,073% year-on-year, despite a decline in gross margin [4]. Financial Summary - For 2024, the company expects revenues of 10.019 billion yuan, a decrease of 8.69% year-on-year, but anticipates a net profit of 830 million yuan, reflecting a growth of 63.15% year-on-year. The non-recurring net profit is projected to be 761 million yuan, up 119.25% year-on-year [4][5]. - The company forecasts revenues of 10.503 billion yuan, 10.859 billion yuan, and 11.202 billion yuan for 2025, 2026, and 2027 respectively, with net profits expected to be 886 million yuan, 925 million yuan, and 967 million yuan for the same years [4][5]. - The asset-liability ratio as of Q1 2025 was 61.06%, a decrease of 0.36 percentage points compared to the end of 2024, indicating a relatively low level of debt [3].