STI(SZ:300416) Orient Securities·2024-04-29 07:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 16.38 yuan, based on a projected EPS of 0.78, 0.97, and 1.21 yuan for 2024 to 2026 respectively [3][4]. Core Insights - The company reported a slight revenue increase of 1.03% in Q1 2024, achieving revenue of 442 million yuan and a net profit of 42 million yuan, which is a decrease of 4.86% year-on-year. The performance met expectations, although profit margins declined, with a net margin of 10.21% and a gross margin of 42.47% [2][3]. - The company is focusing on dual-driven growth strategies, enhancing core technologies and expanding its service network, particularly in the electric vehicle sector and integrated circuit validation. This is expected to lead to a gradual recovery in performance as downstream demand improves in 2024 [2][3]. - The company is well-positioned as a leader in environmental testing, providing comprehensive testing services across the entire industry chain, and is actively exploring new technologies and markets to foster future growth [2][3]. Financial Summary - The company’s financial projections indicate a revenue growth trajectory from 2,524 million yuan in 2024 to 3,524 million yuan in 2026, with corresponding net profits increasing from 395 million yuan to 616 million yuan over the same period. The gross margin is expected to improve from 46.8% in 2024 to 48.2% in 2026 [3][4][8]. - Key financial metrics include an EPS forecast of 0.78 yuan for 2024, with a PE ratio of 18.3, and a net profit margin projected to rise to 17.5% by 2026 [3][4].