CTI(SZ:300012) Southwest Securities·2024-08-12 06:50Investment Rating - The investment rating for the company is "Hold" [1] Core Views - The company reported a revenue of 2.79 billion yuan for H1 2024, representing a year-on-year increase of 9.2%. The net profit attributable to shareholders was 437 million yuan, up 2.0% year-on-year, while the net profit excluding non-recurring items was 403 million yuan, an increase of 4.7% year-on-year [2] - In Q2 2024, the company achieved a revenue of 1.60 billion yuan, which is a 11.1% increase year-on-year and a 34.2% increase quarter-on-quarter. The net profit attributable to shareholders for Q2 was 304 million yuan, up 7.1% year-on-year and 129.4% quarter-on-quarter [2] - The company is focusing on strengthening its existing advantageous businesses, with significant contributions from environmental testing, industrial testing, and consumer product testing segments [2] - The company is actively investing in strategic sectors such as life sciences, new energy, and semiconductor testing, which are expected to drive long-term growth [2] Summary by Relevant Sections Financial Performance - For H1 2024, the life sciences segment generated 1.26 billion yuan in revenue, a 21.7% increase year-on-year, with a gross margin of 49.2%. The industrial testing segment achieved 560 million yuan in revenue, up 13.8% year-on-year, with a gross margin of 45.5% [2] - The trade assurance segment reported 380 million yuan in revenue, a 9.3% increase year-on-year, with a gross margin of 72.7%. The medical and pharmaceutical segment faced challenges, generating 140 million yuan in revenue, down 34.2% year-on-year [2] - The overall gross margin for H1 2024 was 49.5%, a slight increase of 0.15 percentage points year-on-year, while the net margin was 15.7%, down 1.48 percentage points year-on-year [2] Market Outlook - The company is well-positioned in the TIC industry, which has seen growth from 31,000 institutions in 2015 to 54,000 in 2023, with the market size expanding from 180 billion yuan to 467 billion yuan [2] - The domestic inspection and testing certification service industry is projected to reach a total revenue of 500 billion yuan by 2025, indicating significant growth potential [2] - The company maintains a competitive edge in traditional sectors while expanding into new growth areas, which is expected to support stable revenue growth [2] Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 1.02 billion, 1.17 billion, and 1.34 billion yuan, respectively, with corresponding EPS of 0.61, 0.70, and 0.80 yuan. The projected PE ratios are 19, 17, and 15 times for the respective years [3]