STI(SZ:300416) EBSCN·2025-04-17 04:13Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [6]. Core Views - The company experienced a decline in revenue and net profit in 2024, with revenue at 2.026 billion yuan, down 4.31% year-on-year, and net profit at 229 million yuan, down 27% year-on-year [1]. - Despite short-term performance pressures, there is an expectation for recovery in downstream demand, particularly benefiting from the growth in emerging industries and new technologies [3][4]. - The company’s operating cash flow showed a positive trend, with a net inflow of 485 million yuan in 2024, up 31.10% year-on-year, suggesting potential improvement in profitability [3]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 2.026 billion yuan, a decrease of 4.31% year-on-year, and a net profit of 229 million yuan, down 27% year-on-year [1]. - The fourth quarter of 2024 saw operating revenue of 619 million yuan, an increase of 4.93% year-on-year, while net profit was 83 million yuan, down 11.64% year-on-year [1]. Business Segments - The company’s revenue distribution by industry in 2024 was as follows: Electronics and Electrical (40.28%), Research and Testing Institutions (18%), Aerospace (14.7%), Automotive and Rail Transit (10.72%), and Shipbuilding (5.58%) [2]. - Revenue from the testing equipment segment was 623 million yuan, down 17.25% year-on-year; environmental reliability testing services generated 1.009 billion yuan, up 0.64%; and integrated circuit verification and analysis services brought in 288 million yuan, up 12.33% [2]. Profitability and Cash Flow - The company’s gross margin and net profit margin for 2024 were 44.54% and 13.40%, respectively, reflecting a decline of 1.06 percentage points and 4.02 percentage points year-on-year [3]. - The report highlights a good performance in operating cash flow, with a net inflow of 485 million yuan in 2024, indicating a 31.10% increase year-on-year [3]. Future Outlook - The company is expected to benefit from a recovery in downstream demand and the strategic focus on emerging industries, which may drive new growth opportunities [3][4]. - Profit forecasts for 2025 and 2026 have been adjusted to 304 million yuan and 381 million yuan, respectively, with an estimated EPS of 0.60 yuan and 0.75 yuan [4][5].