GRGTEST(002967) Southwest Securities·2024-03-30 16:00Investment Rating - The report maintains a "Hold" rating for the company, indicating that the stock is expected to perform in line with the market over the next six months [10][34]. Core Insights - The company achieved a revenue of 2.889 billion yuan in 2023, representing a year-on-year growth of 10.94%. The net profit attributable to the parent company was 199.39 million yuan, up 8.39% year-on-year [10][29]. - The report highlights the company's strong performance in its core measurement and reliability testing businesses, which have shown steady growth despite a challenging market environment [10][29]. - The company is expected to see a compound annual growth rate (CAGR) of 42% in net profit attributable to the parent company from 2024 to 2026, with projected profits of 349.64 million yuan in 2024, 449.63 million yuan in 2025, and 565.49 million yuan in 2026 [10][29]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 2,889.1 million yuan, with a growth rate of 10.94%. The net profit attributable to the parent company was 199.39 million yuan, reflecting an 8.39% increase. The earnings per share (EPS) for 2024 is projected to be 0.35 yuan, increasing to 0.98 yuan by 2026 [2][10][32]. - The company's return on equity (ROE) is expected to rise from 5.61% in 2023 to 11.98% in 2026, indicating improved profitability [2][10][32]. Business Segments - The measurement service segment is projected to grow at rates of 25%, 15%, and 10% from 2024 to 2026, benefiting from the expansion of laboratory capabilities in major cities [5][10]. - The reliability and environmental testing segment is also expected to see growth, with order increases projected at 20% for 2024, followed by 15% in subsequent years [13][10]. Market Position - The company is positioned as a leading comprehensive testing service provider in China, with a strong presence in traditional sectors such as measurement and electromagnetic compatibility testing, as well as successful expansion into new areas like food and environmental testing [7][10]. - The report compares the company with peers in the testing industry, noting that its average PE ratio for 2024-2025 is expected to be lower than that of comparable companies, indicating potential undervaluation [7][10][30].