Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company is a leading integrated service provider for testing and experimental equipment in China, with a projected revenue of 725 million yuan and a net profit of 176 million yuan in 2024, reflecting a CAGR of approximately 20.43% and 21.50% respectively from 2014 to 2024 [1][13] - The growth is primarily driven by the recovery in demand for automotive testing and electronic electrical testing, with a stable equipment sales performance [1][2] - The company is expanding its capacity with new testing centers, which will support medium-term growth [2][3] Summary by Sections Business Overview - The company operates in two main segments: testing services and equipment manufacturing, with automotive testing, electronic electrical product testing, and equipment sales contributing 42%, 24%, and 21% to total revenue respectively in 2024 [13] - The company has a global presence with over 20 subsidiaries and more than 80 specialized laboratories, providing testing and certification services across various sectors [13] Financial Analysis - The company achieved a revenue of 725 million yuan in 2024, with a year-on-year growth of 6.71% [1][26] - The net profit for 2024 is projected at 176 million yuan, reflecting a year-on-year increase of 7.67% [1][26] - The company maintains a high gross margin of 57.99% and a net margin of 25.01% [1] Growth Forecast - Revenue is expected to grow to 796 million yuan in 2025, with a year-on-year increase of 9.76% [5] - The net profit is projected to reach 203 million yuan in 2025, indicating a growth of 15.52% [5] - The company anticipates continued growth in the automotive and electronic testing sectors, with significant contributions from new testing facilities [54][55] Valuation and Investment Recommendation - The reasonable valuation range for the company is estimated to be between 25.86 and 31.03 yuan per share, with a projected PE ratio of 28, 24, and 20 for the years 2025, 2026, and 2027 respectively [6][3] - The company is expected to maintain a strong performance in the medium term, supported by its strategic expansion and robust market demand [3][54]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue of 372 million yuan for H1 2025, a year-on-year increase of 1.4%, with a net profit attributable to the parent company of 95 million yuan, up 2.4%. In Q2 2025, revenue reached 206 million yuan, showing a significant year-on-year growth of 10.5%, while net profit for the same period was 58 million yuan, increasing by 11.8% [2][6]. - The automotive testing revenue for H1 2025 was 162 million yuan, reflecting a year-on-year growth of 10.52%. The company has established a joint venture in robotics to create a new growth curve for the future [2][12]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 372 million yuan, with a net profit of 95 million yuan. Q2 2025 saw a revenue of 206 million yuan, marking a 10.5% increase year-on-year, and a net profit of 58 million yuan, up 11.8% [2][6]. - The automotive testing segment generated 162 million yuan in revenue, growing by 10.52% year-on-year. The company has a strong presence in the automotive parts and reliability testing sector, serving clients like Tesla and Huawei [12]. Business Segments - The electronic and electrical product testing revenue was 90 million yuan, with a steady growth of 2.35%. The testing equipment segment reported a revenue of 72 million yuan, down 14.85%, primarily due to increased price competition in the equipment manufacturing sector [12]. - The company has established a joint venture for robotics, aiming to enhance efficiency and reduce labor costs in the testing services industry [12]. Profitability and Cash Flow - The net profit margin for Q2 2025 was 28.33%, with a slight year-on-year increase. The gross margin was 61.5%, reflecting a minor improvement [12]. - Operating cash flow for H1 2025 was 62 million yuan, a decrease of 28.2% year-on-year, attributed to long credit terms with major clients and seasonal cash flow patterns [12]. Future Outlook - Revenue projections for 2025-2027 are 797 million yuan, 890 million yuan, and 1 billion yuan, with expected year-on-year growth rates of 10.0%, 11.7%, and 12.5% respectively. Net profit forecasts are 192 million yuan, 221 million yuan, and 256 million yuan, with growth rates of 9.0%, 15.2%, and 15.6% [12].