CTI(SZ:300012) Guotai Junan Securities·2024-08-12 23:37Investment Rating - The report maintains a rating of "Accumulate" for the company [4][5]. Core Views - The company's H1 2024 performance met expectations, with rapid growth in the life sciences segment and a gradual recovery anticipated in the pharmaceutical and medical services segment. Continuous lean management initiatives are expected to support steady growth in performance [5]. - The report projects EPS for 2024-2026 to be 0.62, 0.71, and 0.80 yuan respectively, with a target price of 14.14 yuan [5]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 2.791 billion yuan (up 9.20% YoY) and a net profit attributable to shareholders of 437 million yuan (up 1.97% YoY). The adjusted net profit was 403 million yuan (up 4.74% YoY) [5]. - For Q2 2024, revenue reached 1.599 billion yuan (up 11.14% YoY) and net profit attributable to shareholders was 304 million yuan (up 7.09% YoY) [5]. Segment Performance - The life sciences segment reported revenue of 1.259 billion yuan (up 21.68% YoY), benefiting from strong bidding results in environmental testing and solid performance in food testing [5]. - The industrial testing segment generated revenue of 559 million yuan (up 13.80% YoY), focusing on new energy and new grid sectors [5]. - The consumer products testing segment saw revenue of 462 million yuan (down 3.88% YoY), primarily due to adjustments in medical device classifications [5]. - The pharmaceutical and medical services segment reported revenue of 136 million yuan (down 34.21% YoY), although some areas within this segment showed rapid growth [5]. Strategic Initiatives - The company is actively advancing its digital transformation strategy, optimizing laboratory processes and efficiency, and implementing lean management projects [5]. - In Q2 2024, the gross margin was 52.68% (up 1.59 percentage points YoY), while the net margin was 19.17% (down 1.03 percentage points YoY) [5].