NCS TESTING TECHNOLOGY CO.(SZ:300797) Guotai Junan Securities·2024-08-27 06:43Investment Rating - The report maintains an "Accumulate" rating for the company [3][5]. Core Views - The company's revenue growth is driven by the gradual production ramp-up of testing laboratories, with a 17% year-on-year increase in revenue for the first half of 2024 [4][5]. - The target price has been adjusted down to 11.74 yuan from the previous 16.44 yuan, based on a 2025 price-to-earnings (PE) ratio of 23 times [3][5]. - The company achieved a revenue of 457 million yuan in H1 2024, a 17% increase year-on-year, with a net profit of 48.18 million yuan, up 12% year-on-year [5]. Summary by Sections Revenue and Profitability - The company forecasts net profits for 2024-2026 to be 172 million, 196 million, and 243 million yuan, respectively, with corresponding earnings per share (EPS) of 0.45, 0.51, and 0.63 yuan [5]. - The testing and inspection services segment generated 246 million yuan in revenue, a 24% increase year-on-year, while the analytical instruments segment reported 114 million yuan, a 13% increase [5]. Laboratory Production and Margins - The gross margin for testing services increased by 2.54% to 46% due to the production ramp-up of laboratories in various locations [5]. - Laboratories in Chengdu, Kunshan, and Qingdao have started operations, with Chengdu's revenue growing by 23% and Jiangsu's by 149% in H1 2024 [5]. Product Development and R&D - The company is advancing its analytical instruments business, having launched a national key research project for X-ray photoelectron spectroscopy [5]. - The company has successfully delivered high-end imaging instruments, achieving a 100% self-design rate and a 95% localization rate for components [5]. Financial Metrics - The company reported total assets of 1.668 billion yuan and total liabilities of 694 million yuan, with a net asset value per share of 2.78 yuan [7][11]. - The projected revenue for 2024 is 1.199 billion yuan, with a year-on-year growth of 26.3% [10].