JSTI(300284) 华泰金融·2025-05-16 04:48Investment Rating - The report maintains an "Overweight" rating for JSTI Group with a target price of RMB 10.48, indicating a potential upside of 16% from the closing price of RMB 9.07 as of May 15, 2025 [6][7]. Core Views - JSTI Group's first-quarter 2025 revenue and net profit showed a decline of 9% and 19.1% year-on-year, respectively. However, the report suggests that the peak of impairment provisions has passed, and the company's advantages in digitalization and low-altitude economy development are expected to foster new growth [2][3]. - The gross profit margin increased by 3.84 percentage points to 29.1% in Q1 2025, while the net profit margin decreased due to increased financial expenses from foreign exchange losses [3]. - The operating cash flow showed a significant improvement, with a collection ratio exceeding 100%, despite a net cash outflow of RMB 477 million, which is a reduction of RMB 4.1 billion year-on-year [4]. Financial Performance - For Q1 2025, JSTI Group reported revenues of RMB 80.9 million, attributable net profit of RMB 43.11 million, and recurring net profit of RMB 35.89 million, reflecting a year-on-year decline of 9%, 19.1%, and 27.8%, respectively [2]. - The company's asset-liability ratio improved to approximately 42.9%, down 3.9 percentage points year-on-year, while the interest-bearing debt ratio decreased to 18%, a reduction of 3.5 percentage points compared to the previous year [4]. - The report forecasts earnings per share (EPS) for 2025, 2026, and 2027 to be RMB 0.20, RMB 0.22, and RMB 0.23, respectively, with a price-to-earnings (PE) ratio of 53 times the expected 2025 earnings [6]. Strategic Initiatives - JSTI Group is focusing on digital transformation and industrial innovation, particularly in the low-altitude economy sector, to unlock its second growth curve. The company has deployed over 70 demonstration projects in national highway and bridge safety monitoring [5]. - JSTI is actively participating in over 60 national and provincial key aviation consulting projects and has established a research institute for low-altitude economic development in Jiangsu Province [5].