CTI(300012) Changjiang Securities·2025-01-17 12:16Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a steady revenue growth of 8.49% year-on-year, achieving a total revenue of 6.08 billion yuan in 2024. The net profit attributable to shareholders increased by 2.64% to 934 million yuan, while the net profit excluding non-recurring items rose by 11.39% to 873 million yuan [4][6]. - The gross margin improved by 1.41 percentage points, indicating enhanced profitability. The company is expected to continue its robust growth trajectory as a leading comprehensive testing firm [4][6]. Summary by Relevant Sections Revenue and Profitability - In 2024, the company achieved a revenue of 6.08 billion yuan, with a year-on-year increase of 8.49%. The net profit attributable to shareholders was 934 million yuan, up 2.64%, and the net profit excluding non-recurring items was 873 million yuan, reflecting an increase of 11.39% [4][6]. - The fourth quarter of 2024 saw a revenue of 1.685 billion yuan, a year-on-year increase of 10.59%, with a net profit of 188 million yuan, up 10.75% [4][6]. Business Segments - The company’s growth is driven by several business segments: 1. Life Sciences: Significant contributions from environmental and food testing, with new growth from marine environment monitoring. 2. Industrial Testing: Upgrades in construction testing and improved gross margins. 3. Consumer Goods Testing: Stable growth in electronics and automotive sectors despite challenges in medical device classifications. 4. Trade Assurance: Maintaining competitive advantages in niche markets and expanding overseas client base. 5. Medical and Pharmaceutical: Positive trends in CMC research and medical device sectors despite regulatory impacts [4][6]. Mergers and Acquisitions - The company has actively pursued external acquisitions, successfully acquiring several firms in 2024 to enhance its testing capabilities and international presence [4][6]. Financial Forecast - The company is projected to achieve revenues of 6.605 billion yuan and 7.189 billion yuan in 2025 and 2026, respectively, with corresponding net profits of 1.037 billion yuan and 1.145 billion yuan. The expected price-to-earnings ratios are 19.1x and 17.3x for 2025 and 2026 [4][6].