CTI(300012) 长江证券·2024-08-12 12:43Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a gradual recovery in demand, with Q2 revenue increasing by 11.1% year-on-year, indicating a positive trend in performance [5][6] - The company is expected to see further improvement in profitability in the second half of the year due to low base effects and operational efficiency enhancements [5][6] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 2.791 billion yuan, a year-on-year increase of 9.20%, and a net profit attributable to shareholders of 437 million yuan, up 1.97% year-on-year [5] - Q2 alone saw revenue of 1.599 billion yuan, a year-on-year increase of 11.1%, and a net profit of 304 million yuan, up 7.09% year-on-year [5][6] Business Segments - Life Sciences segment revenue grew by 21.7% in H1, driven by new growth points in marine environment and environmental monitoring [5] - Industrial Testing segment revenue increased by 13.8%, with a recovery in construction testing and stable growth in carbon neutrality and ESG fields [5] - Consumer Products Testing segment saw a decline of 3.9% in revenue, primarily due to reclassification of medical device product lines [5] - Trade Assurance segment maintained a revenue increase of 9.3%, while the Pharmaceutical and Medical segment experienced a significant decline of 34.2% due to regulatory impacts [5] Profitability and Margins - The overall gross margin improved by 0.15 percentage points year-on-year, with notable increases in the Life Sciences, Industrial Testing, and Trade Assurance segments [6] - The net profit margin for Q2 was 19.2%, slightly down by 1.03 percentage points year-on-year, attributed to increased credit impairment losses [6] Cash Flow and Capital Management - The cash collection ratio reached 90%, significantly higher than the previous years, indicating improved cash flow management [6] - The company announced a share repurchase plan, demonstrating confidence in its future growth prospects [6] Earnings Forecast and Valuation - The company is projected to achieve revenues of 6.456 billion yuan, 7.012 billion yuan, and 7.766 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 1.010 billion yuan, 1.112 billion yuan, and 1.230 billion yuan [6] - The estimated PE ratios for the next three years are 19.3x, 17.6x, and 15.9x, indicating a favorable valuation outlook [6]