STI(SZ:300416) Changjiang Securities·2025-04-27 09:15Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Views - The company reported a slight decline in revenue and net profit for Q1 2025, with revenue at 429 million yuan, down 3.0% year-on-year, and net profit at 41 million yuan, also down 3.0% year-on-year. The decline is attributed mainly to the equipment sales business, while environmental testing services and integrated circuit testing are expected to perform well [2][6]. - The report anticipates a recovery in military testing orders and a favorable demand for semiconductor testing, which is expected to drive performance recovery throughout 2025 [2][12]. Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 429 million yuan, a year-on-year decrease of 3.0%, and a net profit of 41 million yuan, also down 3.0%. The non-recurring net profit was 40 million yuan, down 1.4% year-on-year [2][6]. - The revenue decline is primarily due to the equipment sales segment, while environmental testing services and integrated circuit testing are projected to improve [12]. Business Segments - For 2024, the revenue growth rates for different segments were +1.0%, -11.0%, -11.9%, and +4.9% respectively, indicating marginal improvement in Q4 [12]. - The testing equipment segment saw a revenue of 623 million yuan, down 17.25% year-on-year, attributed to reduced capital expenditures from downstream third-party testing institutions [12]. - Environmental testing services generated 1.01 billion yuan, a slight increase of 0.64% year-on-year, with military testing orders gradually recovering [12]. - Integrated circuit testing revenue reached 288 million yuan, up 12.33% year-on-year, driven by high demand from downstream clients [12]. Future Outlook - The report forecasts that military testing orders will accelerate in 2025, coinciding with the conclusion of the military's 14th Five-Year Plan. The company is expected to benefit from this trend [12]. - Revenue projections for 2025-2027 are estimated at 2.32 billion yuan, 2.63 billion yuan, and 2.96 billion yuan respectively, with net profits expected to grow by 27.0%, 23.7%, and 23.7% [12].