Core Insights - The article highlights the recent movements of social security funds in the stock market, revealing that five new stocks were added to their portfolio in the second quarter, alongside adjustments in existing holdings [1][2] Group 1: Social Security Fund Holdings - A total of 106 companies have disclosed their semi-annual reports, with social security funds appearing in 16 stocks [1] - In the second quarter, social security funds initiated positions in five stocks, increased holdings in five stocks, reduced holdings in five stocks, and maintained their position in one stock [1] - The stock with the highest number of social security fund holders is Su Shi Testing, with three funds listed among the top ten circulating shareholders, holding a total of 14.862 million shares, accounting for 2.94% of circulating shares [1] Group 2: New Stock Performance - Among the newly acquired stocks, Su Shi Testing has the highest holding percentage at 2.94%, followed by Enhua Pharmaceutical at 0.97%, and others like Weili Medical and Siwei Control [1][2] - In terms of share volume, Su Shi Testing leads with 14.862 million shares, followed by Enhua Pharmaceutical with 8.552 million shares and Xiangdian Co. with 8 million shares [1][2] Group 3: Financial Performance - Among the new stocks, five companies reported year-on-year net profit growth, with Siwei Control achieving the highest increase of 59.76%, followed by Su Shi Testing and Weili Medical with growth rates of 14.18% and 14.17% respectively [2]

Summary of Su Shi Testing Conference Call Company Overview - **Company**: Su Shi Testing - **Industry**: Testing and Inspection Services Key Financial Performance - **Revenue Growth**: 6.72% increase in H1 2025, reaching 999.1 million CNY [2][3] - **Net Profit**: 14.18% increase, totaling 117 million CNY [3] - **Integrated Circuit Revenue**: Grew by 21.01%, reaching 155 million CNY [2][3] - **Overall Gross Margin**: Decreased by 3.16% to 41.88% [2][3] - **Net Margin**: Increased by 0.27% to 13.51% [3] Segment Performance - **Environmental Testing Equipment**: Revenue of 310 million CNY, up 6.32% [3] - **Environmental Testing Services**: Revenue of 487 million CNY, up 5.75% [3] - **Integrated Circuit Segment**: Gross margin of 36.49%, down 6.38% [3] Strategic Insights - **Focus on Emerging Industries**: Plans to reduce investment in traditional sectors and increase focus on aerospace and commercial space [4][15] - **New Product Development**: Emphasis on R&D to counteract declining gross margins [6][19] - **Capacity Utilization**: Increased from 30% to over 70% in Shanghai [12] Market Trends and Opportunities - **Vacuum Testing Equipment Demand**: Strong demand with plans to achieve billion-level revenue [2][8][29] - **AI and High-Performance Chip Testing**: Significant growth in testing services, with AI chip clients accounting for nearly 10% of business [2][9] - **Third-Party Testing Demand**: Recovery observed, with orders increasing to over 15% [22][23] Challenges and Risks - **Price Pressure**: Increased competition leading to price pressures across all segments [6][19] - **Delivery Speed of Large Orders**: Need to monitor the delivery speed of large orders in H2 2025 [5][24] - **Impact of Policy Changes**: Restrictions on outsourcing may affect operational efficiency [32][39] Future Outlook - **Optimistic H2 2025**: Anticipated growth in equipment and testing service orders, with a focus on improving delivery speed [5][10] - **Capital Expenditure Trends**: Expected to remain stable with a slight decrease, focusing on emerging sectors [16][18] - **Long-Term Growth in Special Industries**: Positive outlook for special industries over the next few years [36] Conclusion - Su Shi Testing is positioned for growth in emerging sectors, particularly in aerospace and AI chip testing, while facing challenges from price competition and policy restrictions. The company is actively working on improving operational efficiency and expanding its market presence.

Group 1 - The core viewpoint of the article highlights the movements of social security funds in the stock market, revealing that they appeared in the top ten circulating shareholders of 14 stocks by the end of the second quarter, with a total holding of 175 million shares valued at 4.237 billion yuan [1][2] - Social security funds increased their holdings in 5 stocks and initiated positions in 4 new stocks, while reducing their stakes in 4 stocks [1][2] - The stock with the highest number of social security fund shareholders is Su Shi Testing, with 3 funds listed among the top ten shareholders, holding a total of 14.862 million shares, accounting for 2.94% of the circulating shares [1][2] Group 2 - Among the stocks held by social security funds, 12 companies reported year-on-year net profit growth in their semi-annual reports, with Ding Tong Technology achieving the highest growth rate of 134.06%, followed by Hui Jia Times and Cangge Mining with increases of 62.64% and 38.80% respectively [2] - The distribution of stocks held by social security funds shows that 10 are from the main board, 2 from the ChiNext board, and 2 from the Sci-Tech Innovation board, with a concentration in the pharmaceutical and electrical equipment industries [2] - Since July, the average increase of stocks heavily held by social security funds is 10.24%, outperforming the Shanghai Composite Index, with Ding Tong Technology showing the best performance with a cumulative increase of 44.64% [2][3]

Core Insights - The company reported a revenue of 9.52 billion yuan for H1 2025, representing a year-on-year increase of 8.16%, with a net profit attributable to shareholders of 1.17 billion yuan, up 14.18% year-on-year [1] - In Q2 2025, the company achieved a revenue of 5.61 billion yuan, reflecting a year-on-year growth of 18.39%, and a net profit of 0.76 billion yuan, which is a 26.14% increase year-on-year [1] - The integrated circuit verification and analysis service revenue grew by 21.01% year-on-year to 1.55 billion yuan, although the gross margin decreased by 6.38 percentage points to 36.49% [1] Business Expansion and R&D - The company has enhanced its laboratory infrastructure, completing the expansion of its Shenzhen laboratory, which will serve the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on consumer electronics and automotive electronics [1] - The company is actively exploring new fields such as commercial aerospace and intelligent robotics, expanding its testing capabilities in areas like space environment testing and automotive materials testing [2] - The aerospace business revenue surged by 46.24% year-on-year to 14.73 billion yuan [2] Financial Performance and Cost Management - The revenue from testing equipment was 3.10 billion yuan, up 6.32% year-on-year, while the gross margin decreased by 4.66 percentage points to 26.56% [2] - Revenue from environmental and reliability testing services reached 4.87 billion yuan, with a year-on-year increase of 5.75% and a gross margin of 54.95%, down 0.79 percentage points [2] - The company has implemented cost control measures, resulting in a decrease in sales expense ratio to 6.48% and management expense ratio to 10.75% in Q2 2025 [2] Profit Forecast and Valuation - The company is projected to achieve net profits attributable to shareholders of 3.06 billion yuan, 3.72 billion yuan, and 4.54 billion yuan for 2025, 2026, and 2027 respectively, corresponding to price-to-earnings ratios of 27x, 22x, and 18x [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][47][48] Core Views - The company has shown robust growth in the first half of 2025, with revenue and net profit increasing by 8.09% and 14.18% respectively, driven by strong performance in integrated circuit testing and emerging field services [1][3] - The company is expected to benefit from the domestic high-end testing equipment localization trend and the rigid demand in sectors such as new energy vehicles, integrated circuits, and aerospace [3][47] - The estimated reasonable valuation range for the company is between 18.98 and 21.09 yuan, with projected net profits for 2025-2027 being 2.89, 3.58, and 4.34 billion yuan respectively [3][46][47] Financial Performance Summary - In the first half of 2025, the company's revenue and net profit were 991 million and 117 million yuan, with gross and net profit margins at 41.88% and 13.51% respectively [1] - For Q2 2025, revenue and net profit reached 561 million and 76 million yuan, reflecting year-on-year growth of 18.39% and 26.14% [1] - The company’s revenue from testing equipment, environmental and reliability testing services, and integrated circuit verification and analysis services for the first half of 2025 were 310 million, 487 million, and 155 million yuan, with respective year-on-year growth rates of 6.32%, 5.75%, and 21.01% [2] Revenue and Profit Forecast - The company is projected to achieve revenues of 22.95 billion, 25.96 billion, and 29.24 billion yuan for 2025, 2026, and 2027, with corresponding growth rates of 13.34%, 13.11%, and 12.65% [21][30] - The forecasted net profits for the same period are 2.89 billion, 3.58 billion, and 4.34 billion yuan, with growth rates of 25.81%, 23.88%, and 21.42% [30][46] Valuation Metrics - The company’s estimated PE ratios for 2025, 2026, and 2027 are 29, 23, and 19 respectively [3][46] - The estimated PB ratio for 2025 is 2.9, which is below the average of comparable companies [40][48] - The company’s historical PE valuation has fluctuated, with a current level above 29, indicating potential for further valuation recovery [43][45]

Investment Rating - The report indicates a stable growth phase for the testing industry, with a revenue forecast of 487.6 billion yuan for 2024, reflecting a year-on-year increase of 4.4% [6][20]. Core Insights - The testing industry is entering a phase of steady growth, with a compound annual growth rate (CAGR) of approximately 6.0% from 2022 to 2024, following a significant slowdown in growth due to various economic pressures [6][20]. - The number of testing institutions is projected to decline for the first time in nearly 20 years, suggesting a potential turning point in the competitive landscape [6][21]. - The focus of demand is shifting towards technology, manufacturing, high-end consumer goods, biomedicine, and software information testing, indicating a structural transformation in the industry [7][29]. Summary by Sections Space - The total revenue for national testing institutions is expected to reach 487.6 billion yuan in 2024, with a year-on-year growth of 4.4%, down from 9.2% in 2023 [6][20]. - The industry has experienced a significant slowdown in growth due to pressures in traditional sectors like environmental and food testing, as well as real estate [6][20]. Field - The revenue share of ten advanced industries in testing services has increased from 21.4% to 26.3% from 2017 to 2024, while traditional industries have seen a slight decline [7][29]. Structure - By the end of 2024, private testing institutions are expected to number 33,900, accounting for 63.9% of the total, with a compound annual growth rate of 14.2% over the past decade [10][29]. Efficiency - The per capita output value in the testing service industry is projected to rise to 313,000 yuan in 2024, reflecting a year-on-year increase of 4.1% [9][29]. Investment Recommendations - The report recommends focusing on comprehensive testing leaders with clear internal operational turning points, particularly in high-end manufacturing and technology research testing [11][29]. - Companies to watch include Su Shi Testing, Huace Testing, and Xince Standards, among others, which are positioned to benefit from demand recovery and operational improvements [11][29].

Core Viewpoint - The report from Zhongyou Securities indicates that Su Shi Testing achieved a net profit attributable to shareholders of 117 million yuan in the first half of 2025, representing a year-on-year increase of 14.18% [1] Financial Performance - In Q1 2025, the company reported a net profit of 41 million yuan, showing a year-on-year decline of 3% - In Q2 2025, the net profit increased to 76 million yuan, with a year-on-year growth rate of 26% [1] - The significant improvement in Q2 performance compared to Q1 is attributed to strong demand in both the testing equipment and testing services sectors [1] Market Outlook - The company maintains an optimistic outlook for the second half of the year, expecting continued growth in testing equipment and environmental testing services [1] - The integrated circuit sector has shown remarkable performance, contributing to the overall positive market sentiment [1] Long-term Growth Potential - The company is focused on enhancing its technical reserve capabilities and actively exploring emerging fields, which is expected to provide long-term growth opportunities [1] - The projected PE valuations for the company from 2025 to 2027 are 28.49, 23.62, and 19.83 respectively, supporting a "buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for the company [8][10]. Core Insights - The company reported a significant growth in Q2 2025, with a year-on-year increase in net profit of over 26%, indicating a turning point in performance [5]. - The revenue for H1 2025 reached 991 million yuan, a year-on-year increase of 8.09%, while the net profit attributable to shareholders was 117 million yuan, up 14.18% [4]. - The integrated circuit segment showed remarkable performance, with revenue growth of 21.01% [5]. Financial Performance - The company's gross margin decreased by 3.16 percentage points to 41.88% in H1 2025, with specific segments like testing equipment and integrated circuit services experiencing notable declines in gross margins [6]. - The company expects revenues for 2025-2027 to be 2.316 billion, 2.605 billion, and 2.898 billion yuan, with corresponding net profits of 290 million, 349 million, and 416 million yuan, reflecting growth rates of 14.33%, 12.49%, and 11.26% respectively [8][12]. Business Segments - The testing equipment segment generated 310 million yuan in revenue, a 6.32% increase, while environmental and reliability testing services brought in 487 million yuan, up 5.75% [5]. - The company is actively enhancing its technical capabilities and expanding into emerging fields such as new energy and commercial aerospace, which is expected to provide long-term growth opportunities [7].

Group 1 - The core viewpoint of the articles highlights the movements of social security funds in the stock market, revealing their presence in the top ten circulating shareholders of 12 stocks by the end of Q2, with a total holding of 159 million shares valued at 4.058 billion yuan [1][2] - Social security funds have newly entered 4 stocks and increased holdings in 3 stocks, while reducing holdings in 4 stocks, with one stock remaining unchanged [1] - The stock with the highest number of social security fund shareholders is Su Shi Testing, with 3 funds appearing in the top ten shareholders, holding a total of 14.862 million shares, accounting for 2.94% of circulating shares [1] Group 2 - Among the stocks held by social security funds, 11 companies reported year-on-year net profit growth in their semi-annual reports, with the highest growth seen in Huijia Times, which achieved a net profit of 67.0481 million yuan, a year-on-year increase of 62.64% [2] - The distribution of stocks held by social security funds shows that 9 are from the main board, 2 from the ChiNext board, and 1 from the Sci-Tech Innovation board, with a concentration in the pharmaceutical and electric equipment industries [2] - The average increase in the market performance of stocks heavily held by social security funds since July is 7.02%, outperforming the Shanghai Composite Index [2]

Core Viewpoint - The company reported strong performance in its 2025 H1 financial results, with significant growth in revenue and net profit, driven by advancements in the integrated circuit analysis sector [1][3]. Financial Performance - In 2025 H1, the company achieved a revenue of 991 million yuan, representing a year-on-year growth of 8.09% [1]. - The revenue breakdown includes: - Testing equipment: 310 million yuan, up 6.32% - Environmental reliability testing services: 487 million yuan, up 5.75% - Integrated circuit verification and analysis services: 155 million yuan, up 21.01% [1]. - The net profit attributable to shareholders reached 117 million yuan, with a year-on-year increase of 14.18% [1]. - The net profit after deducting non-recurring items was 114 million yuan, reflecting a growth of 20.72% [1]. - In Q2, the company reported a revenue of 561 million yuan, a year-on-year increase of 18.39%, and a net profit of 76 million yuan, up 26.14% [1]. Cost Management and Profitability - The overall expense ratio for 2025 H1 was 28.57%, a decrease of 1.76 percentage points year-on-year [2]. - The breakdown of expense ratios includes: - Sales expense ratio: 7.35%, down 0.12 percentage points - Management expense ratio: 11.49%, down 1.08 percentage points - Financial expense ratio: 1.55%, down 0.33 percentage points - R&D expense ratio: 8.18%, down 0.23 percentage points [2]. - The gross profit margins for the main business segments showed a decline, attributed to increased competition in the downstream market [2]. Business Model and Future Outlook - The company has established a unique business model that integrates testing equipment and services, creating a high technical barrier [2]. - It has developed a comprehensive one-stop testing service platform catering to industries such as new energy, commercial aerospace, drones, and integrated circuits [2]. - The company is focused on R&D of new products and technologies to meet diverse customer needs and drive future growth [2]. - The company is optimistic about its future development potential, especially with the rapid advancement of technologies like 5G and IoT [2]. Earnings Forecast and Investment Recommendation - The company is projected to achieve revenues of 2.335 billion yuan, 2.659 billion yuan, and 2.992 billion yuan for 2025-2027, with year-on-year growth rates of 15.3%, 13.8%, and 12.5% respectively [3]. - The net profit attributable to shareholders is expected to be 306 million yuan, 377 million yuan, and 445 million yuan for the same period, with growth rates of 33.5%, 23.0%, and 18.3% respectively [3]. - The current stock price corresponds to a PE ratio of 27.2, 22.1, and 18.7 for 2025-2027, indicating a favorable long-term trend in downstream demand [3].