STI(SZ:300416) EBSCN·2025-07-31 03:19Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment returns over the next 6-12 months [6]. Core Insights - The company reported strong performance in Q2 2025, with a revenue of 9.91 billion yuan for H1 2025, representing an 8.09% year-on-year increase, and a net profit of 1.17 billion yuan, up 14.18% year-on-year [1]. - The company is expected to benefit from improving orders in special industries and new growth driven by emerging industries in the second half of 2025 [3]. - The operating cash flow has shown continuous improvement, with a net inflow of 98.84 million yuan in H1 2025, a 29.32% increase year-on-year [4]. Revenue and Profitability - In H1 2025, revenue from the electronics and electrical sector, aerospace, and research and testing institutions was 3.85 billion, 1.47 billion, and 2.19 billion yuan, respectively, with year-on-year growth rates of 2.86%, 46.24%, and 1.84% [2]. - The company achieved a gross margin of 41.88% and a net margin of 13.51% in H1 2025, despite a decline in gross margins due to reduced expense ratios and the reversal of credit impairment losses [2]. Business Segments - Revenue from testing equipment, environmental reliability testing services, and integrated circuit verification and analysis services in H1 2025 was 3.10 billion, 4.87 billion, and 1.55 billion yuan, with year-on-year growth rates of 6.32%, 5.75%, and 21.01% respectively [2]. - The company is focusing on R&D for new products and technologies in sectors such as new energy, commercial aerospace, and integrated circuits, which is expected to drive further growth [3]. Financial Projections - The company forecasts net profits of 3.04 billion, 3.81 billion, and 4.62 billion yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.60, 0.75, and 0.91 yuan [4][5]. - The current stock price corresponds to a P/E ratio of 28x for 2025, 22x for 2026, and 18x for 2027, indicating potential for future growth [4].