STI(SZ:300416) Huachuang Securities·2024-08-23 10:11Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 14.96 CNY, compared to the current price of 11.22 CNY [1]. Core Views - The company's revenue for H1 2024 was 917 million CNY, a decrease of 5.58% year-on-year, while the net profit attributable to shareholders was 103 million CNY, down 24.35% year-on-year. The adjusted net profit was 95 million CNY, reflecting a decline of 26.8% year-on-year [1]. - The second quarter performance was under pressure, but there is optimism for recovery in the future. The company is expected to benefit from ongoing investments in R&D and service capabilities, particularly in high-end manufacturing sectors [1]. - The report highlights a slight increase in gross margin to 45.04% and a slight decrease in net margin to 13.24% for H1 2024 [1]. Financial Summary - For H1 2024, the company reported revenues of 917 million CNY, with a gross margin of 45.04% and a net margin of 13.24% [1]. - The revenue breakdown shows that testing equipment revenue decreased by 14.57% to 291 million CNY, while integrated circuit verification and analysis services grew by 18.22% to 128 million CNY [1]. - The company expects revenues for 2024-2026 to be 2,231 million CNY, 2,702 million CNY, and 3,226 million CNY respectively, with year-on-year growth rates of 5.4%, 21.1%, and 19.4% [2]. Investment Recommendations - The report suggests that despite the current challenges, the long-term growth potential of the company remains strong due to its technological barriers and ongoing expansion in high-end manufacturing applications [1]. - The projected net profits for 2024-2026 are 331 million CNY, 452 million CNY, and 568 million CNY, with growth rates of 5.2%, 36.6%, and 25.7% respectively [2].