CTC(SH:603060) GOLDEN SUN SECURITIES·2025-04-23 01:25Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's Q4 earnings are under short-term pressure due to declining gross margins and increased impairment losses, but significant recovery in profitability is expected in 2025 [1] - The company plans to achieve a revenue of 2.8 billion in 2025, representing a 7% increase, and a total profit of 380 million, indicating an 18% growth [1] - The company is focusing on expanding into emerging markets such as smart water conservancy and nuclear power, which are expected to drive transformation and upgrade of existing businesses [4] Revenue and Profitability - In 2024, the company achieved total revenue of 2.62 billion, a decrease of 1.6% year-on-year, and a net profit attributable to shareholders of 204 million, down 20.8% year-on-year [5] - The revenue from the main inspection and testing business grew steadily, while the smart manufacturing segment saw a significant decline of 20% [2] - The overall gross margin for 2024 was 43.51%, a decrease of 1.5 percentage points, primarily due to the impact of smart manufacturing and environmental food and agriculture testing [3] Financial Projections - The company expects net profits for 2025, 2026, and 2027 to be 223 million, 235 million, and 245 million respectively, with year-on-year growth rates of 9.6%, 5.5%, and 3.9% [4][5] - The earnings per share (EPS) for the same years are projected to be 0.28, 0.29, and 0.30 yuan per share [4][5] - The current stock price corresponds to a price-to-earnings (P/E) ratio of 25 for 2025 [4] Business Segments - The revenue from the inspection and testing segment was 1.87 billion, up 3% year-on-year, while the environmental and food testing segment saw a decline of 11% [2] - The company is optimizing its business structure, with emerging sectors like new materials and water conservancy accounting for nearly 50% of revenue in 2024 [3]