CTI(SZ:300012) Guolian Securities·2024-08-13 08:20Investment Rating - The investment rating for the company is "Buy" [7][10] Core Views - The macroeconomic environment in 2024 is expected to remain relatively low, with overall downstream demand weakening. However, soil testing and aviation testing are anticipated to bring incremental growth to the company [3][10] - The company achieved a revenue of 2.791 billion yuan in H1 2024, representing a year-on-year growth of 9.2%, and a net profit of 437 million yuan, up 1.97% year-on-year [10] - The company is projected to have revenues of 6.431 billion, 7.246 billion, and 8.187 billion yuan for 2024, 2025, and 2026 respectively, with a compound annual growth rate (CAGR) of 16.57% [3][10] Summary by Sections Financial Performance - In H1 2024, the company reported revenue growth across several segments, with life sciences testing growing by 21.68% and industrial testing by 13.8%. However, the medical testing segment faced a decline of 34.21% due to industry downturns [10] - The gross margin for H1 2024 was 49.52%, with a slight year-on-year decrease of 0.15 percentage points, while the net margin was 15.68%, down 1.49 percentage points [10] - The company has a total share capital of 1,682.83 million shares and a circulating market value of 17,066.69 million yuan [7] Business Segments - The soil testing segment performed exceptionally well, winning multiple contracts across various provinces, contributing to a higher gross margin due to economies of scale [10] - The life sciences testing segment is expected to continue to grow as the company invests in more niche areas within food safety testing [10] Future Projections - The company forecasts revenues of 6.431 billion, 7.246 billion, and 8.187 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 1.034 billion, 1.231 billion, and 1.442 billion yuan for the same years [11][10] - Earnings per share (EPS) are projected to be 0.61, 0.73, and 0.86 yuan for 2024, 2025, and 2026 respectively [3][10]