STI(SZ:300416) GOLDEN SUN SECURITIES·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Insights - The company's 2023 annual report met expectations, with a steady development of its "equipment + services" dual engine. The company achieved a total revenue of 2.117 billion yuan in 2023, representing a year-on-year growth of 17.26%. The net profit attributable to shareholders was 314 million yuan, with a growth rate of 16.44% [3][5]. - The company has a strong competitive advantage in the complete testing industry chain, particularly in emerging downstream sectors, which is expected to release significant testing demand [4][16]. - The company is projected to achieve revenues of 2.680 billion yuan, 3.275 billion yuan, and 3.797 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 26.6%, 22.2%, and 15.9% [5][6]. Financial Performance - In 2023, the company reported a gross margin of 45.6%, a decrease of 1.06 percentage points year-on-year, while the net profit margin was 17.42%, an increase of 0.16 percentage points [15]. - The company’s R&D expense ratio was 7.87%, an increase of 0.42 percentage points year-on-year, indicating a continuous investment in R&D to support emerging industry demands [15]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.82 yuan, 1.06 yuan, and 1.23 yuan respectively, reflecting a positive growth trajectory [6][5]. Market Position and Strategy - The company is recognized as a leader in environmental testing services, with a focus on expanding its capabilities in new energy, storage, aerospace, wireless communication, and medical devices [16]. - The company has established a deep competitive moat through its extensive experience and technological accumulation in testing services, which positions it well to benefit from the growing demand in emerging industries [4][16].