STI(300416) 东方证券·2024-03-30 16:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 17.94 CNY [88] Core Views - The company operates under a dual-drive model of "equipment + services," focusing on emerging, high-barrier, and high-growth testing projects, particularly in the integrated circuit (IC) testing sector [1] - The company has maintained steady revenue and net profit growth over the past decade, with a CAGR of 25.16% for revenue and 23.97% for net profit from 2013 to 2023 [13] - The company is a leader in the environmental testing (ET) equipment and services market, with a strong presence in high-growth sectors such as new energy vehicles, aerospace, and IC testing [76] Business Overview - The company's main business segments include environmental and reliability testing services, equipment sales, and IC verification and analysis services [105] - The company has a diversified customer base across industries such as automotive, new energy, rail transit, aerospace, shipbuilding, robotics, and petrochemicals [5] - The company's testing equipment includes mechanical, climatic, and comprehensive environmental testing systems, with a leading market share in mechanical environmental testing equipment in China [149] Financial Performance - In 2023, the company achieved revenue of 2.117 billion CNY, a year-on-year increase of 17.26%, and a net profit of 314 million CNY, up 16.44% year-on-year [76] - The company's gross margin in 2023 was 45.60%, while the net margin increased by 0.16 percentage points to 17.42% [15] - The company's operating cash flow improved significantly, reaching 370 million CNY in 2023, providing a solid foundation for capacity expansion and new projects [108] Industry Analysis - The environmental testing market in China reached 30.4 billion CNY in 2022, with a CAGR of 11% from 2013 to 2022 [115] - The IC testing market is growing rapidly due to the acceleration of domestic substitution in China, with the IC design industry's sales reaching 534.57 billion CNY in 2022, a year-on-year increase of 16.5% [42] - The global semiconductor third-party testing market is expected to grow from 3 billion USD in 2021 to 7.5 billion USD by 2028, with a CAGR of 13.95% [51] Strategic Initiatives - The company has expanded its testing capabilities in high-growth sectors such as new energy vehicles, aerospace, and IC testing, with several capacity expansion projects expected to be completed by 2024 [30][39] - The company acquired Shanghai Etest in 2019, entering the IC testing market, and has since become one of the leading third-party testing institutions in mainland China [55][57] - The company has implemented employee stock ownership plans in 2019 and 2022 to incentivize employees and align their interests with the company's long-term growth [97][100] Competitive Advantages - The company has a first-mover advantage in equipment and capacity, with advanced IC testing equipment and a strong focus on R&D [58] - The company's "equipment + services" dual-drive model allows it to provide comprehensive testing solutions, enhancing its competitive edge in the market [117] - The company has a nationwide laboratory network, covering all major regions in China, and offers a full range of testing services across the industrial chain [146]