STI(SZ:300416) Soochow Securities·2025-10-27 05:01Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a 9% year-on-year decline in net profit attributable to shareholders in Q3, primarily due to the impact of new capacity release and credit impairment [2] - Q3 revenue increased by 11% year-on-year, with steady growth across various segments, but profit growth fell short of market expectations due to intensified competition and increased depreciation [2][3] - The company is positioned in a high-barrier, growth-oriented sector, with significant market potential in the inspection and testing industry, projected to grow over 9% year-on-year [4] Financial Performance Summary - For the first three quarters of 2025, the company achieved total revenue of 1.53 billion yuan, a 9% increase year-on-year, while net profit attributable to shareholders was 160 million yuan, up 7% [2] - In Q3 alone, the company generated revenue of 540 million yuan, an 11% increase year-on-year, but net profit decreased by 9% to 40 million yuan [2] - The gross margin for Q3 was 38.7%, down 3.4 percentage points year-on-year, while the net profit margin was 8.2%, down 2.2 percentage points [3] - The company’s operating expenses ratio decreased to 27.6% in Q3, with effective control over sales and management expenses [3] Market Position and Growth Potential - The company is a leader in environmental and reliability testing, with a focus on high-barrier sectors such as semiconductors and new energy vehicles [4] - The inspection and testing industry in China is expected to continue growing, driven by demand recovery in specialized sectors and the localization of chip production [4] - The company has expanded its capacity in multiple locations, including Suzhou, Xi'an, Qingdao, and Chengdu, which is expected to enhance growth and profit flexibility [4]