LK (600388.SH): In the first three quarters, the results of were solid, with large shareholders completing the overweight December 4, 2017

Summary of Investment

  • Major shareholders increased their holdings, and the margin of safety appeared;
  • The wide market space in the non-electric field is urgently needed to be released;

Investment Rating

As an industry leader, the company will certainly benefit from the promising market space for future non-electric treatment sector. We forecast that the company`s net income for 2017-2018 will be RMB732 million and RMB815 million, respectively; EPS will be RMB0.69 and RMB0.76, respectively; equivalent to the PE ratio in 2017/2018 of 23.0/20.7. We give a target price of RMB20.0 for “Buy” rating. (Closing price as at 30 Nov 2017)

About the author

Profile photo of Wang Yannan

Wang Yannan
Phillip Securities (HK)

Graduated from the University of Science and Technology of China with a Masters degree in Management and major in Financial accounting and Economics throughout her academic study.

Currently Covering Environmental Protection and New Energy sectors as an analyst in Phillip Securities and focus on the macro policy,industry and fundamentals to explore the investment value.

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