STI(300416) Changjiang Securities·2024-10-28 02:42Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a significant decline in performance, with a 48.3% year-on-year drop in net profit attributable to shareholders in Q3 2024, alongside an 11.9% decrease in revenue [5][6]. - The decline in revenue is attributed to weak demand affecting order performance, particularly in the testing equipment and environmental testing services sectors, compounded by special events in the military industry [5][6]. - Future expectations include potential revenue and profit recovery driven by equipment renewal policies, gradual recovery in military testing demand, and sustained demand for new energy vehicle testing [5][6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 1.406 billion yuan, a decrease of 7.9% year-on-year, with a net profit of 146 million yuan, down 33.6% [5]. - In Q3 alone, revenue was 489 million yuan, down 11.9%, and net profit was 44 million yuan, down 48.3% [5][6]. - The gross profit margin for the first three quarters was 44.0%, a decline of 1.07 percentage points year-on-year, with Q3 gross margin at 42.1%, down 3.69 percentage points [5][6]. Market Outlook - The company is expanding its capacity and actively developing new application areas, including the construction of wireless testing laboratories and expansion of testing centers for new energy vehicles and aerospace products [6]. - The company anticipates revenue growth in the testing equipment sector due to policy-driven equipment updates and a gradual release of military testing orders [5][6]. Earnings Forecast - The company is expected to achieve revenues of 1.97 billion yuan, 2.14 billion yuan, and 2.36 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 227 million yuan, 262 million yuan, and 310 million yuan [6]. - The corresponding price-to-earnings (PE) ratios are estimated at 29.4x, 25.4x, and 21.5x for the same years [6].