STI(SZ:300416) EBSCN·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - 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 the parent company of 314 million yuan, up 16.44% year-on-year [1]. - The revenue structure has shifted, with the growth rate of net profit slightly lagging behind revenue growth due to lower gross margins in the testing equipment segment compared to other services [1][2]. - The company is accelerating its business expansion into new fields such as new energy, aerospace, and medical devices, with plans for new laboratories and service networks [2]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 2.117 billion yuan, a 17.26% increase from the previous year, and a net profit of 314 million yuan, reflecting a 16.44% growth [1]. - The fourth quarter of 2023 saw a revenue of 590 million yuan, up 8.24% year-on-year, and a net profit of 94 million yuan, a 3.03% increase [1]. Revenue Structure - The revenue from testing equipment reached 753 million yuan, growing by 23.00%, while environmental and reliability testing services generated 1.003 billion yuan, up 19.45%. Integrated circuit verification and analysis services brought in 257 million yuan, a growth of 2.34% [1]. - The gross margin for testing equipment and integrated circuit services decreased by 1.01 percentage points and 13.80 percentage points, respectively, while the gross margin for environmental reliability testing services increased by 1.85 percentage points [2]. Business Expansion - The company is focusing on expanding its capabilities in environmental and reliability testing, integrated circuit verification, and electromagnetic compatibility, with plans to establish specialized laboratories in Mianyang and Guizhou, and a laboratory in Thailand [2]. - The company is also accelerating the construction of a new energy vehicle testing center and a fifth-generation mobile communication performance testing service platform, expected to be operational in the second half of 2024 [2]. Profit Forecast and Valuation - The net profit forecast for 2024 and 2025 has been adjusted downwards by 20.00% and 24.63% to 381 million yuan and 455 million yuan, respectively, with a projected net profit of 543 million yuan in 2026 [3]. - The earnings per share (EPS) for 2024, 2025, and 2026 are estimated to be 0.75 yuan, 0.89 yuan, and 1.07 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 19, 16, and 14 times [3].