CTI(SZ:300012) Soochow Securities·2024-08-13 12:00Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's performance in the first half of 2024 aligns with market expectations, driven by strong growth in the life sciences and industrial testing sectors [1][2] - The company has a forward-looking strategy focusing on emerging businesses and international expansion, which is expected to sustain long-term growth [1][2] Financial Performance Summary - In H1 2024, the company achieved total revenue of 2.79 billion yuan, a year-on-year increase of 9.2%, and a net profit attributable to shareholders of 440 million yuan, up 2.0% year-on-year [2][7] - The life sciences segment reported revenue of 1.26 billion yuan, growing 21.7% year-on-year, while the industrial testing segment saw revenue of 560 million yuan, up 13.8% year-on-year [2][7] - The gross profit margin for H1 2024 was 49.5%, with a slight year-on-year increase of 0.1 percentage points, while the net profit margin was 15.7%, down 1.5 percentage points year-on-year [2][7] Business Segment Performance - The life sciences and industrial testing segments showed strong performance, while the consumer products testing segment experienced a decline of 3.9% year-on-year [2][7] - The trade assurance segment grew by 9.3% year-on-year, while the pharmaceutical and medical services segment saw a significant decline of 34.2% year-on-year due to the base effect from nucleic acid testing [2][7] Future Outlook - The company is actively pursuing mergers and acquisitions to enhance its capabilities in strategic emerging fields such as semiconductor testing and low-altitude economy [1][2] - The internationalization strategy is progressing, with Singapore set as the overseas operational headquarters to expand into Southeast Asia and other regions [1][2] Earnings Forecast and Valuation - The report forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 1.06 billion yuan, 1.23 billion yuan, and 1.43 billion yuan, respectively [1][2] - The current market capitalization corresponds to a price-to-earnings ratio of 19, 16, and 14 times for the years 2024, 2025, and 2026 [1][2]