STI(SZ:300416) Soochow Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company achieved operating revenue of 2.1 billion yuan in 2023, a year-on-year increase of 17%, and a net profit attributable to the parent company of 310 million yuan, up 16% year-on-year. In Q4 alone, revenue reached 600 million yuan, growing 8% year-on-year, with a net profit of 94 million yuan, an increase of 3% year-on-year. The revenue breakdown shows that environmental testing equipment generated 750 million yuan (up 23%), environmental testing services brought in 1 billion yuan (up 19%), and integrated circuit testing contributed 260 million yuan (up 2) [1][2][3] - The company is expected to benefit from the recovery in demand for environmental testing services and the release of production capacity in the integrated circuit testing segment in 2024, leading to a potential performance rebound [1][3] Summary by Sections Financial Performance - In 2023, the company's gross profit margin was 45.6%, a decrease of 1.0 percentage points year-on-year, primarily due to the impact of integrated circuit capacity expansion. The gross profit margins for different segments were: environmental testing equipment at 32.8% (down 1.0 percentage points), environmental testing services at 58.8% (up 1.9 percentage points), and integrated circuit testing at 43.3% (down 13.9 percentage points) [2] - The company's expense ratio for 2023 was 26.4%, down 1.9 percentage points year-on-year, indicating improved cost control. The sales, management, R&D, and financial expense ratios were 6.4%, 10.9%, 7.9%, and 1.2%, respectively [2] - The net profit margin for 2023 was 17.4%, an increase of 0.2 percentage points year-on-year, remaining stable [2] Market Outlook - The company is positioned as a leader in environmental and reliability testing, benefiting from the manufacturing sector's transformation and upgrade, which is expected to increase demand for testing equipment and services [3] - The company is expanding into high-barrier testing sectors, covering military, semiconductor, and new energy vehicle industries, while also exploring high-end fields like 5G, which are anticipated to drive new growth engines [3] - The forecast for net profit attributable to the parent company for 2024-2026 has been adjusted to 390 million yuan (previously 450 million yuan), 500 million yuan (previously 600 million yuan), and 630 million yuan, respectively, with an "Accumulate" rating maintained [3]