STI(SZ:300416) Xinda Securities·2024-03-31 16:00Investment Rating - The report assigns a "Buy" rating for the company [11]. Core Views - The company has demonstrated resilient growth in 2023, with revenue reaching 2.117 billion (up 17.3%) and net profit attributable to the parent company at 314 million (up 16.4%) [11][12]. - The company is expected to accelerate growth in 2024, driven by the release of new production capacity and expansion into new fields such as satellite internet and low-altitude economy [11]. - The report highlights the company's strong position in the environmental testing services sector, which is anticipated to benefit from the booming demand in the new energy industry [11]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 2.117 billion (up 17.3%) and a net profit of 314 million (up 16.4%) [11][12]. - The gross margin for 2023 was 45.6%, a slight decrease of 1.1 percentage points compared to the previous year [20]. - The company’s net profit margin was 14.8%, down 0.2 percentage points [20]. Growth Drivers - The report identifies environmental testing equipment and services as a key growth driver, with expectations for industry recovery and increasing demand from the new energy sector [11]. - New production capacity in semiconductor testing is anticipated to contribute to high growth, with Shanghai Yite expected to release capacity in 2024 [11]. - The company is expanding its laboratory network and entering new markets, which is expected to further enhance its competitive advantage [11]. Profitability Forecast - The forecast for net profit attributable to the parent company is 386 million, 495 million, and 610 million for 2024, 2025, and 2026 respectively, corresponding to a PE ratio of 19, 15, and 12 [11][12]. - The report anticipates a steady increase in gross margin, projected to reach 48.1% by 2025 [12]. Market Position - The company maintains a leading position in environmental testing services, with a strong focus on expanding into high-demand sectors such as new energy, low-altitude economy, and 5G communication [11]. - The report emphasizes the company's robust laboratory development and its strategic expansion into international markets [11].