CTI(300012) Minsheng Securities·2024-10-25 06:42Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the coming year [1]. Core Insights - The company reported a revenue of 4.396 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 7.71%. The net profit attributable to shareholders was 747 million yuan, with a slight increase of 0.79% year-on-year. The gross margin stood at 50.88%, up by 0.50 percentage points, while the net margin decreased by 1.45 percentage points to 17.11% [1]. - In Q3 2024, the company achieved a revenue of 1.605 billion yuan, reflecting a year-on-year growth of 5.21%. However, the net profit attributable to shareholders declined by 0.82% year-on-year to 310 million yuan. The gross margin for Q3 was 53.24%, an increase of 1.17 percentage points, while the net margin was 19.59%, down by 1.35 percentage points [1]. - The company is expanding its business into maritime and electric vehicle testing through acquisitions, including the purchase of 100% of Naias and a 70% stake in Jiangsu Honghai Vehicle Testing Co., Ltd. This strategic move aims to enhance its service capabilities in the green energy sector and the electric bicycle testing market [1]. - The company is recognized as a leading player in China's testing industry, with a stable demand across various sectors, particularly in emerging fields such as electronics and electric vehicles. The traditional sectors are seeing a decline in revenue share, from 47.09% in 2016 to 38.32% in 2023 [1]. - The company has established over 160 laboratories and more than 260 service networks in over 90 cities globally, producing over 4 million credible testing and certification reports annually for more than 100,000 clients [1]. - The investment forecast for net profit attributable to shareholders for 2024-2026 is projected at 955 million, 1.184 billion, and 1.367 billion yuan, respectively, with corresponding price-to-earnings ratios of 26x, 21x, and 18x [2][4]. Financial Summary - For 2024, the expected total revenue is 6.026 billion yuan, with a growth rate of 7.5%. The net profit attributable to shareholders is projected at 955 million yuan, reflecting a growth rate of 4.9% [2][4]. - The company’s earnings per share for 2024 is estimated at 0.57 yuan, with a price-to-earnings ratio of 26 [2][4]. - The gross margin is expected to remain stable around 48.54% for the next few years, indicating consistent profitability [4].