GRGTEST(002967) 华创证券·2024-10-27 10:23Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 21.55 CNY, compared to the current price of 17.11 CNY [1]. Core Views - The company's Q3 performance exceeded expectations, with significant improvements in profitability. For the first three quarters of 2024, the company achieved a revenue of 2.16 billion CNY, a year-on-year increase of 10.0%, and a net profit attributable to shareholders of 189 million CNY, up 42.18% year-on-year [1]. - The revenue growth rate has been increasing quarter by quarter, with Q3 showing a revenue of 816 million CNY and a net profit of 109 million CNY, representing year-on-year increases of 11.45% and 50.22%, respectively [1]. - The company's gross margin and net margin improved significantly in Q3 2024, reaching 48.9% and 13.5%, respectively, with year-on-year increases of 5.4 percentage points and 3.42 percentage points [1]. - The company has implemented a share incentive plan to motivate its core management team and business backbone, with profit targets set for the next three years [1]. - A strategic shift has been made to focus on profit-centered management and the development of strategic industries, including technology innovation to support national technological advancements [1]. Financial Summary - For 2023, the total revenue is projected at 2.889 billion CNY, with a year-on-year growth of 10.9%. The net profit attributable to shareholders is expected to be 199 million CNY, reflecting an 8.4% increase [2]. - The forecast for 2024 estimates total revenue of 3.272 billion CNY, a growth of 13.3%, and a net profit of 295 million CNY, indicating a substantial increase of 48.2% [2]. - The earnings per share (EPS) is projected to rise from 0.34 CNY in 2023 to 0.51 CNY in 2024, with a corresponding decrease in the price-to-earnings (P/E) ratio from 50 to 34 [2].