Core Viewpoint - Su Shi Testing (300416) has demonstrated robust growth in its operating performance for the first three quarters of 2025, with both revenue and net profit increasing, showcasing strong business resilience and development potential in a complex macroeconomic environment [1] Financial Performance - For the first nine months of 2025, the company achieved revenue of 1.532 billion yuan, a year-on-year increase of 8.95%; in the third quarter alone, revenue reached 541 million yuan, up 10.57% year-on-year, indicating an accelerating business development trend [2] - The net profit attributable to shareholders for the first three quarters was 157 million yuan, a year-on-year increase of 7.14%, maintaining stable overall profitability [2] - Notably, the net profit excluding non-recurring gains and losses reached 149 million yuan, a significant year-on-year increase of 13.92%, highlighting the substantial improvement in the quality of core business profitability [2] - R&D investment for the first three quarters of 2025 amounted to 125 million yuan, a year-on-year increase of approximately 10%, continuously fueling product and service upgrades [2] Policy and Asset Quality - The company is actively leveraging national support for technological innovation and advanced manufacturing, with subsidiaries benefiting from tax incentives totaling over 5.46 million yuan [3] - As of September 30, 2025, total assets reached 5.105 billion yuan, a 1.43% increase from the end of the previous year; credit impairment losses and asset impairment losses decreased significantly by 68.10% and 31.28%, respectively, reflecting effective management of accounts receivable and asset quality [3] - Despite fluctuations in net cash flow from operating activities, the company has ensured the safety and flexibility of its overall cash flow through meticulous financial planning [3] Strategic Development - The company is expanding into high-growth emerging sectors while maintaining its traditional business advantages, achieving key breakthroughs in qualifications and capabilities [4] - Recent achievements include obtaining third-party laboratory recognition from Seres (601127) and PTCRB laboratory authorization, enhancing its service offerings in various testing areas [4] - The company is focusing on emerging sectors such as commercial aerospace, aviation equipment, intelligent robotics, and new energy, significantly advancing its testing capabilities [4] Laboratory Network Expansion - The national laboratory network is steadily advancing, with the headquarters project in Wuhan expected to be completed by the end of 2026, and new laboratories in Shenyang and Shenzhen enhancing service capabilities [5] - The ongoing improvement of the laboratory network and the realization of scale effects are expected to stabilize the profitability of subsidiaries [5] Shareholder Structure and Market Outlook - The shareholder structure remains stable, with the controlling shareholder holding 31.93% of the shares, and the employee stock ownership plan reinforcing the alignment of interests [6][7] - Research institutions have recognized the company's growth potential, with a consensus net profit forecast of 294 million yuan for 2025, representing a year-on-year increase of 28.04% [7] - The average target price from institutions is 19.50 yuan, with a strong market confidence reflected in the "buy" ratings from multiple institutions [7]