STI(SZ:300416) Tai Ping Yang·2025-04-19 00:25Investment Rating - The investment rating for the company is "Buy" with a target price of 25.00, compared to the last closing price of 15.87 [1]. Core Insights - The company's operating performance has slightly declined, with a reported revenue of 2.026 billion and a net profit of 229 million for the year 2024, representing a decrease of 4.31% and 27.00% year-on-year, respectively [5][6]. - The company is focusing on expanding its production capacity through ongoing fundraising projects, which are expected to gradually release capacity [6]. - The company has established a unique business model that integrates testing equipment and services, which is expected to drive growth in the future [7]. Financial Performance Summary - For the year 2024, the company achieved a revenue of 2.026 billion, down 4.31% from the previous year, and a net profit of 229 million, down 27.00% [5][9]. - The revenue from testing equipment decreased by 17.25% to 622.79 million, while revenue from environmental and reliability testing services increased by 0.64% to 1.009 billion, and integrated circuit verification and analysis services grew by 12.33% to 288.16 million [6]. - The company expects net profits for 2025, 2026, and 2027 to be 329 million, 375 million, and 419 million, respectively, with corresponding EPS of 0.65, 0.74, and 0.82 [7][9]. Market Outlook - The company is well-positioned to benefit from the growing demand for third-party environmental and reliability testing services, as the current supply is insufficient to meet market needs [7]. - The projected revenue growth rates for the next few years are 16.50% for 2025, 14.50% for 2026, and 12.00% for 2027 [9].