CTC(SH:603060) Zheng Quan Zhi Xing·2025-06-20 11:29Core Viewpoint - The credit rating agency maintains the long-term credit rating of China National Inspection Testing Holding Group Co., Ltd. at AA+ with a stable outlook, indicating the company's strong market position and financial stability [1][4]. Company Overview - China National Inspection Testing Holding Group Co., Ltd. is a leading comprehensive inspection and testing certification service provider in China, under the China National Building Material Group Corporation [4][10]. - The company has a strong brand influence and service capability in the inspection industry, with a focus on construction materials and engineering quality testing [4][19]. Financial Performance - In 2024, the company reported a total revenue of 26.17 billion yuan, with a profit of 3.21 billion yuan, indicating stable financial performance despite a slight decline in the number of inspection reports issued [11][25]. - The company's gross profit margin remains high, around 44.95% in 2024, although it experienced a slight decrease compared to the previous year [25][26]. Business Segments - The main revenue source is inspection and testing services, accounting for approximately 70% of total revenue, followed by certification services and smart manufacturing [25][27]. - The company issued over 1.12 million inspection reports in 2024, with a significant portion of revenue coming from engineering and material testing [19][25]. Industry Context - The inspection and testing industry in China is expanding, with over 53,834 inspection and testing institutions reported in 2023, reflecting a growth of about 2% year-on-year [16][17]. - The industry achieved a total revenue of approximately 470 billion yuan in 2023, with a year-on-year growth exceeding 9% [16][17]. Competitive Advantages - The company benefits from strong support from its parent group, which enhances its financing capabilities and market competitiveness [6][19]. - It has established a significant number of national and industry-level testing centers, contributing to its strong brand reputation and credibility in the market [19][20]. Risks and Challenges - The company faces challenges related to accounts receivable, with a notable increase in long-term receivables that may affect cash flow [5][7]. - There is a risk of goodwill impairment due to acquisitions, with goodwill amounting to 689 million yuan, representing 12.22% of total assets as of 2024 [7][19].