CTI(SZ:300012) Minsheng Securities·2024-08-13 00:30Investment Rating - The report maintains a "Recommended" rating for the company, which is recognized as a leader in the testing industry in China [2]. Core Insights - The company reported a revenue of 2.791 billion yuan for H1 2024, representing a year-over-year increase of 9.20%. The net profit attributable to shareholders was 437 million yuan, with a year-over-year growth of 1.97%. The gross margin stood at 49.52%, up by 0.15 percentage points, while the net profit margin was 15.68%, down by 1.49 percentage points [2]. - The life sciences and industrial testing segments achieved double-digit growth, with life sciences revenue reaching 1.259 billion yuan, a year-over-year increase of 21.68%. The industrial testing segment generated 559 million yuan, reflecting a year-over-year growth of 13.80% [2]. - The company is expected to achieve net profits of 1.08 billion yuan, 1.335 billion yuan, and 1.56 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 19x, 15x, and 13x [2][3]. Financial Forecasts - For 2024, the company is projected to have total revenue of 6.427 billion yuan, with a growth rate of 14.7%. The net profit attributable to shareholders is expected to be 1.08 billion yuan, reflecting a growth rate of 18.7% [3]. - The earnings per share (EPS) is forecasted to be 0.64 yuan for 2024, with a price-to-earnings (PE) ratio of 19 [3][8]. - The gross margin is anticipated to improve slightly, reaching 49.04% in 2024, while the net profit margin is expected to be around 16.81% [8].