GRGTEST(002967) Changjiang Securities·2024-07-09 03:01Investment Rating - The report maintains a "Buy" rating for the company [33] Core Insights - The company is expected to achieve a revenue of 7.12-8.12 billion yuan in Q2 2024, representing a year-on-year growth of 3.9%-18.4%. The net profit attributable to the parent company is forecasted to be 0.74-0.84 billion yuan, reflecting a year-on-year increase of 18%-33% [31][14] - The company has implemented a stock incentive plan aimed at profit and cash flow, indicating a strong commitment to sustainable growth [32] - The company is positioned as a national high-end manufacturing testing enterprise, with a solid foundation for future growth due to its comprehensive qualifications and capacity [9] Summary by Sections Revenue and Profit Forecast - The company anticipates a total revenue of 13-14 billion yuan for the first half of 2024, with a year-on-year increase of 5.6%-13.7%. The net profit attributable to the parent company is expected to be 0.75-0.85 billion yuan, marking a year-on-year growth of 25%-41% [31] - The company projects revenues of 32.99 billion yuan, 37.60 billion yuan, and 42.90 billion yuan for 2024-2026, with corresponding year-on-year growth rates of 14.2%, 14.0%, and 14.1% [17] Business Development and Strategy - The company has strengthened market collaboration and expanded orders in key sectors such as special industries, automotive, integrated circuits, and data science, leading to stable growth in orders [2] - The company is focusing on reducing losses in its food and environmental testing segments while enhancing management efficiency and integrating operations [9][16] Financial Performance - The company achieved a net profit margin of 10.3%-10.4% in Q2 2024, which is an increase of 1.2 percentage points year-on-year, indicating a trend towards high-quality development [16] - The company has reduced its workforce slightly, with 6,304 employees at the end of 2023, which is a decrease of 11 employees year-on-year [9] Market Position and Outlook - The company is expected to benefit from a recovery in military testing orders and growth potential in automotive testing due to new model releases [9] - The company’s stock incentive plan is designed to enhance long-term performance metrics, including net profit and cash return on equity [32]