STI(SZ:300416) Guotou Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy - A" rating for the company, with a 6-month target price of 18.75 CNY [10][34]. Core Insights - The company's core business operations are stable, with rapid growth in the automotive and rail transit sectors. The environmental testing business has shown improved profitability and is expected to tap into the low-altitude economy [9][30]. - In 2023, the company achieved a revenue of 2.117 billion CNY, a year-on-year increase of 17.26%, and a net profit of 314.3 million CNY, up 16.44% [23][34]. - The report highlights the company's strong expansion capabilities and its potential to become a comprehensive testing leader across multiple sectors [18][34]. Financial Performance Summary - Revenue projections for 2024-2026 are 2.553 billion CNY, 3.179 billion CNY, and 3.933 billion CNY, reflecting growth rates of 20.6%, 24.5%, and 23.7% respectively [34]. - Net profit forecasts for the same period are 381 million CNY, 485 million CNY, and 631 million CNY, with growth rates of 21.2%, 27.2%, and 30.4% respectively [34]. - The company's gross margin for 2023 was 45.6%, a slight decrease of 1.06 percentage points year-on-year, while the environmental testing business achieved a gross margin of 58.80%, an increase of 1.85 percentage points [23][30]. Business Segment Performance - The automotive and rail transit revenue reached 192 million CNY in 2023, a year-on-year increase of 35.76%, driven by the growing demand in the domestic new energy vehicle sector [24][34]. - The integrated circuit business generated revenue of 258 million CNY in 2023, with a net profit margin recovery expected in 2024 due to ongoing investments in testing equipment [30][34]. - The company is expanding its testing capabilities in aerospace and low-altitude flight testing, which aligns with national policies promoting the low-altitude economy [31][34].