STI(SZ:300416) Soochow Securities·2025-04-25 12:07Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's Q1 2025 revenue of 430 million yuan represents a year-on-year decline of 3%, which is in line with expectations. The decline is attributed to the traditional off-season for the testing industry and lower capacity utilization due to the Spring Festival holiday. However, there is an expectation for revenue growth to resume starting in Q2 2025 as demand recovers [2] - The gross profit margin for Q1 2025 is reported at 40.4%, a decrease of 2 percentage points year-on-year, while the net profit margin improved by 0.3 percentage points to 10.5%. The decline in gross margin is influenced by new capacity ramp-up and intensified competition in the electric vehicle testing sector [3] - The company is positioned in a high-barrier market with significant growth potential. The testing and inspection industry in China is projected to grow, with the company actively expanding into high-end sectors such as 5G, which will drive future growth. The demand for testing services is expected to increase as special industry needs recover and domestic chip production ramps up [4] Financial Summary - For 2023A, total revenue is projected at 2,117 million yuan, with a year-on-year growth of 17.26%. However, a decline of 4.31% is expected in 2024A, followed by a recovery with growth rates of 13.65%, 13.81%, and 15.13% in 2025E, 2026E, and 2027E respectively [1] - The net profit attributable to the parent company is forecasted to be 314.27 million yuan in 2023A, with a decline of 27% in 2024A, followed by a recovery with growth rates of 30.44%, 26.01%, and 19.70% in the subsequent years [1] - The latest diluted EPS is expected to be 0.62 yuan in 2023A, decreasing to 0.45 yuan in 2024A, and then recovering to 0.59 yuan, 0.74 yuan, and 0.89 yuan in 2025E, 2026E, and 2027E respectively [1]