STI(SZ:300416) Huachuang Securities·2024-04-02 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 19 CNY, compared to the current price of 15.00 CNY [1]. Core Views - The company's performance in 2023 slightly exceeded previous forecasts, with total revenue reaching 2.12 billion CNY, a year-on-year increase of 17.3%, and a net profit attributable to shareholders of 314 million CNY, up 16.4% year-on-year [1]. - The report highlights the fastest growth in the equipment segment, with the integrated circuit gross margin expected to improve in the future [1]. - The company is anticipated to benefit from demand recovery in 2024, which will lead to capacity release and improved performance [1]. Financial Performance Summary - In 2023, the company achieved total revenue of 2,117 million CNY, with a year-on-year growth of 17.3%. The net profit attributable to shareholders was 315 million CNY, reflecting a 16.4% increase [1]. - The gross margin for the company in 2023 was 58.8% for environmental testing, 32.8% for testing equipment, and 43.3% for integrated circuits, with year-on-year changes of +1.85 percentage points, -1.01 percentage points, and -13.8 percentage points respectively [1]. - The projected revenues for 2024, 2025, and 2026 are 2,517 million CNY, 3,022 million CNY, and 3,596 million CNY, with year-on-year growth rates of 18.9%, 20.1%, and 19.0% respectively [1]. - The expected net profits for the same years are 386 million CNY, 488 million CNY, and 603 million CNY, with growth rates of 22.8%, 26.6%, and 23.5% respectively [1].