STI(SZ:300416) Guolian Securities·2024-08-23 08:33Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on its stable operational capabilities as a leader in the testing equipment industry [2][4]. Core Insights - The macroeconomic environment in 2024 is expected to remain relatively weak, with overall downstream demand decreasing. However, special industry orders are anticipated to gradually recover, and the subsidiary Yite's capacity enhancement plan is expected to normalize [2][6]. - The company reported a slight decline in performance for H1 2024, with revenue of 917 million yuan, down 5.58% year-on-year, and a net profit attributable to shareholders of 103 million yuan, down 24.35% year-on-year [6][4]. - The integrated circuit testing segment showed growth, while environmental testing services and equipment faced pressure. Revenue from environmental testing services, testing equipment, and integrated circuit testing was 461 million, 291 million, and 128 million yuan respectively, with year-on-year changes of -1.72%, -14.57%, and +18.22% [6][4]. - The company's gross margin remained stable at 45.04%, while the net margin slightly decreased to 13.24%. The gross margins for environmental testing services, testing equipment, and integrated circuit testing were 55.74%, 31.21%, and 42.87% respectively [6][4]. - The company is focusing on new product and technology development, with ongoing research in various fields including new energy, aerospace, and medical devices. Despite the current macroeconomic challenges, the company is viewed positively for its future business development [6][4]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 2.516 billion, 3.014 billion, and 3.616 billion yuan respectively, with a compound annual growth rate (CAGR) of 24.03%. Net profit projections for the same years are 383 million, 492 million, and 600 million yuan [2][6]. - Earnings per share (EPS) are projected to be 0.75, 0.97, and 1.18 yuan per share for 2024, 2025, and 2026 respectively [2][6]. - The company’s financial metrics indicate a stable operating environment, with a projected price-to-earnings (P/E) ratio decreasing from 21.1 in 2022 to 9.5 by 2026, and a price-to-book (P/B) ratio decreasing from 2.6 to 1.6 over the same period [7][6].