STI(SZ:300416) Guohai Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [21][29]. Core Insights - The company achieved a revenue of 2.117 billion yuan in 2023, representing a year-on-year growth of 17.26%, and a net profit attributable to shareholders of 314 million yuan, up 16.44% year-on-year [1][16]. - The company is expanding its network and production capacity, with significant projects completed in testing systems, which are expected to enhance performance in the second half of the year [2][21]. - The company is well-positioned to benefit from the growth in downstream industries such as new energy and wireless communication, with several projects expected to commence operations in the latter half of the year [2][21]. Financial Performance Summary - In 2023, the company reported revenues of 2.117 billion yuan and a net profit of 314 million yuan, with respective growth rates of 17.26% and 16.44% [1][16]. - The company’s revenue is projected to grow to 2.624 billion yuan in 2024, 3.174 billion yuan in 2025, and 3.760 billion yuan in 2026, with growth rates of 24%, 21%, and 18% respectively [4][21]. - The diluted earnings per share (EPS) are expected to increase from 0.62 yuan in 2023 to 1.26 yuan by 2026 [4][21]. Business Segment Performance - The company’s testing equipment segment generated 753 million yuan in revenue, growing by 23% year-on-year, while environmental and reliability testing services and integrated circuit verification services reported revenues of 1.003 billion yuan and 257 million yuan, growing by 19.45% and 2.34% respectively [16][21]. - The gross margin for the company was reported at 45.60%, with a net margin reaching a historical high of 17.42% [16][21]. Future Outlook - The company is expected to see significant revenue and profit growth in the coming years, with net profits projected to reach 397 million yuan in 2024, 508 million yuan in 2025, and 642 million yuan in 2026, reflecting growth rates of 26.28%, 28.10%, and 26.21% respectively [4][21]. - The report highlights the potential for improved profitability as production capacity is released in the second half of the year [21].