STI(SZ:300416) Changjiang Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company [5][3]. Core Views - The company achieved a revenue of 2.117 billion yuan in 2023, representing a year-on-year increase of 17.26%, and a net profit of 314 million yuan, up 16.44% year-on-year, indicating that performance met expectations [19][16]. - The net profit margin for 2023 was 17.4%, an increase of 0.2 percentage points year-on-year, reflecting stable profitability despite temporary disruptions in military testing demand affecting revenue growth and cash flow [2][19]. - The report anticipates a recovery in demand in 2024, driven by the gradual digestion of pre-investment costs and an expected increase in production capacity utilization [3][20]. Summary by Sections Financial Performance - In 2023, the company's gross profit margin was 45.6%, a decrease of 1.1 percentage points year-on-year, with specific margins for equipment sales, testing services, and integrated circuit testing at 32.8%, 58.8%, and 43.3% respectively [2][19]. - Operating cash flow decreased by 20.9% to 370 million yuan, with a cash collection ratio dropping by 7.2 percentage points to 90.2%, likely due to extended order settlement cycles in the military industry [2][19]. - The asset-liability ratio decreased by 5.0 percentage points to 38.9%, indicating a continued decline in leverage over the past three years [2][19]. Revenue and Profit Forecast - The company is expected to achieve revenues of 2.38 billion, 2.77 billion, and 3.18 billion yuan from 2024 to 2026, with net profits of 382 million, 469 million, and 573 million yuan respectively, reflecting year-on-year growth rates of 21.5%, 22.9%, and 22.1% [3][29]. - The corresponding price-to-earnings (PE) ratios are projected to be 18.8x, 15.3x, and 12.5x for the same period [3][29]. Market and Industry Outlook - The company possesses advantages in technology and service networks within the military, new energy vehicles, and semiconductor testing sectors, with long-term demand expected to remain strong despite short-term disruptions [3][20]. - The report highlights the positive outlook for 2024, with expectations of demand recovery in special industry testing, automotive testing, and semiconductor testing due to a resurgence in consumer electronics demand and capacity expansion [20][21].