Company Overview - Suzhou Su Test Experiment Group Co., Ltd. is located in Suzhou Industrial Park, Jiangsu Province, and was established on December 29, 2007. The company was listed on January 22, 2015. It specializes in environmental and quality reliability testing and comprehensive analysis service solutions for industrial products [1][2]. - The company's main business revenue composition includes: environmental reliability testing services (49.19%), testing equipment (31.27%), integrated circuit verification and analysis services (15.63%), and others (3.91%) [1]. Financial Performance - For the first half of 2025, the company achieved operating revenue of 999.1 million yuan, representing a year-on-year growth of 8.09%. The net profit attributable to the parent company was 117 million yuan, with a year-on-year increase of 14.18% [2]. - Since its A-share listing, the company has distributed a total of 367 million yuan in dividends, with 211 million yuan distributed in the last three years [3]. Stock Performance - As of September 23, the company's stock price decreased by 2.01%, trading at 17.10 yuan per share, with a total market capitalization of 8.696 billion yuan. The stock has increased by 47.29% year-to-date, but has seen a decline of 0.18% over the last five trading days and 8.21% over the last 20 days [1]. - The company experienced a net outflow of 12.2752 million yuan in principal funds, with significant selling pressure observed [1]. Shareholder Structure - As of June 30, 2025, the number of shareholders was 23,100, a decrease of 12.49% from the previous period. The average circulating shares per person increased by 14.27% to 21,903 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the third-largest shareholder, holding 8.7405 million shares, a decrease of 1.9285 million shares from the previous period [3].

Core Insights - Guangdong enterprises are increasingly expanding their international trade and investment, with a notable focus on emerging markets and new business models [2][4][6] Group 1: Trade and Export Growth - In the first eight months of this year, Guangzhou International Port operated 233 international trains, with a total cargo value of 5.209 billion RMB, accounting for 40% of Guangdong's international train operations [2] - Private enterprises in Guangdong are the main drivers of foreign trade, with imports and exports reaching 3.99 trillion RMB, a growth of 4.8%, representing 64.2% of the total trade value [2] - Guangdong's exports to countries along the Belt and Road reached 1.79 trillion RMB, growing by 3.8%, and accounted for 39.3% of the province's total imports and exports [4] Group 2: Market Expansion and New Opportunities - Guangdong enterprises are actively targeting new markets, particularly in emerging economies, with significant growth in exports to BRICS countries [3][4] - The Middle East is becoming a focal point for Guangdong companies, especially in the electric vehicle sector, as these countries seek to diversify their energy strategies [4][5] - Companies like EHang and TCL are establishing manufacturing facilities and partnerships in the Middle East, contributing to local industry development [5] Group 3: Innovative Business Models - Guangdong manufacturers are shifting from traditional product exports to collaborative industrial chain strategies, enhancing their global competitiveness [6] - The success of brands like Miniso demonstrates the effectiveness of leveraging supply chain advantages to support international expansion, with overseas revenue growing by 42% [7] - Digital trade is also on the rise, with companies like Tencent Cloud and Huawei Cloud providing essential services to support Chinese enterprises going global [8] Group 4: Cultural and Digital Export - The digital cultural industry is gaining traction, with games like "Black Myth" achieving significant global sales, showcasing Guangdong's competitive edge in the digital space [8] - The evolution of Guangdong enterprises' export strategies reflects a broader trend towards higher-value participation in global markets, integrating innovation and supply chain strengths [8]

Company Overview - Suzhou Su Test Experiment Group Co., Ltd. is located in Suzhou Industrial Park, Jiangsu Province, and was established on December 29, 2007, with its listing date on January 22, 2015 [1] - The company specializes in environmental and quality reliability testing and comprehensive analysis service solutions, focusing on the research and production of environmental testing equipment [1] - The main revenue composition includes: environmental reliability testing services (49.19%), testing equipment (31.27%), integrated circuit verification and analysis services (15.63%), and other services (3.91%) [1] Financial Performance - For the first half of 2025, the company achieved operating revenue of 999.1 million yuan, representing a year-on-year growth of 8.09%, and a net profit attributable to shareholders of 117 million yuan, with a year-on-year increase of 14.18% [2] - Since its A-share listing, the company has distributed a total of 367 million yuan in dividends, with 211 million yuan distributed in the last three years [3] Stock Performance - As of September 5, the stock price increased by 2.03% to 17.05 yuan per share, with a total market capitalization of 8.671 billion yuan [1] - Year-to-date, the stock price has risen by 46.86%, but it has decreased by 9.12% over the last five trading days [1] - The stock has a trading volume of 233 million yuan and a turnover rate of 2.74% [1] Shareholder Information - As of June 30, 2025, the number of shareholders is 23,100, a decrease of 12.49% from the previous period, with an average of 21,903 circulating shares per person, an increase of 14.27% [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited as the third-largest shareholder, holding 8.7405 million shares, a decrease of 1.9285 million shares from the previous period [3]

Core Insights - Guangzhou's foreign trade maintained positive growth with a total import and export value of 711.46 billion yuan in the first seven months of 2025, representing a year-on-year increase of 14.5% [2] - Exports reached 466.52 billion yuan, up 23.2%, while imports were 244.94 billion yuan, showing a modest growth of 1% [2] - Private enterprises played a significant role, accounting for 60% of the total foreign trade value with an import and export value of 427.66 billion yuan, marking a 25.6% increase [2] Trade Performance - Key commodities saw significant export growth, with high-tech products exported valued at 51.28 billion yuan, up 15.4%, and "new three samples" products at 12.34 billion yuan, up 38.3% [3] - The international shipbuilding market is experiencing a surge in orders, with companies like Guangzhou Salvage Bureau actively engaging in the construction of environmentally friendly multi-purpose marine engineering vessels [3] Market Expansion - The foreign trade landscape is diversifying, with Guangzhou's exports to the EU and ASEAN increasing by 28.5% and 33.8% respectively, and trade with Belt and Road countries growing by 24.4% [5] - The company Guangzhou Qingtian Intelligent Equipment Technology Co., Ltd. reported strong demand for home appliances in BRICS countries, with exports exceeding 450 million yuan, of which over 160 million yuan were to other BRICS nations [5] Private Sector Dynamics - Private enterprises are the backbone of Guangzhou's foreign trade, with over 23,000 companies engaged in import and export activities, a 10.5% increase year-on-year [6] - The number of private enterprises exceeded 20,000, making up 86.7% of all companies with foreign trade performance [6] - Companies are innovating to meet international market demands, such as Guangdong Bavi Biotechnology Co., Ltd. developing a waterproof sunscreen foundation tailored for hot climates in Southeast Asia [6]

Core Insights - The company is a small but specialized integrated service provider for testing and experimental equipment, with a projected revenue growth from 113 million yuan in 2014 to 725 million yuan in 2024, reflecting a CAGR of approximately 20.43% [1] - The net profit attributable to the parent company is expected to grow from 25 million yuan in 2014 to 176 million yuan in 2024, with a CAGR of about 21.50% [1] - In 2024, revenue and net profit are forecasted to increase by 6.71% and 7.67% year-on-year, driven by the recovery in automotive testing and electronic testing market demand [1] Financial Performance - For the first half of 2025, the company expects revenue and net profit to reach 372 million yuan and 95 million yuan, representing year-on-year growth of 1.35% and 2.40% respectively [1] - In Q2 2025, revenue and net profit are projected to be 206 million yuan and 58 million yuan, showing a year-on-year increase of 10.45% and 11.82% [1] Business Segments - The company operates with a dual engine of testing services and equipment manufacturing, with revenue from automotive testing, electronic testing, and experimental equipment in the first half of 2025 being 162 million yuan, 90 million yuan, and 72 million yuan respectively [1] - The automotive testing segment is benefiting from advancements in electrification, intelligence, and autonomous driving, leading to an increase in new orders [1] Strategic Initiatives - The company is accelerating its layout in the fields of automotive intelligence and assisted driving testing, capitalizing on increased R&D investments from major manufacturers [2] - A new robotics technology company has been established to focus on the manufacturing and R&D of industrial, service, and special operation robots, promoting the automation and intelligence of testing services [2] - An employee stock ownership plan for 2025 has been introduced, targeting core management, technical, and key business personnel, with performance targets set for revenue and net profit growth from 2025 to 2027 [2] Growth Outlook - The company is expected to achieve net profits of 203 million yuan, 239 million yuan, and 281 million yuan from 2025 to 2027, with corresponding PE ratios of 28, 24, and 20 [2] - The reasonable valuation for one year is projected to be between 25.86 and 31.03 yuan, with a corresponding PE of 25 to 30 for 2026 [2]

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].

Core Insights - The company reported a revenue of 9.52 billion yuan for H1 2025, representing a year-on-year increase of 8.16%, with a net profit attributable to shareholders of 1.17 billion yuan, up 14.18% year-on-year [1] - In Q2 2025, the company achieved a revenue of 5.61 billion yuan, reflecting a year-on-year growth of 18.39%, and a net profit of 0.76 billion yuan, which is a 26.14% increase year-on-year [1] - The integrated circuit verification and analysis service revenue grew by 21.01% year-on-year to 1.55 billion yuan, although the gross margin decreased by 6.38 percentage points to 36.49% [1] Business Expansion and R&D - The company has enhanced its laboratory infrastructure, completing the expansion of its Shenzhen laboratory, which will serve the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on consumer electronics and automotive electronics [1] - The company is actively exploring new fields such as commercial aerospace and intelligent robotics, expanding its testing capabilities in areas like space environment testing and automotive materials testing [2] - The aerospace business revenue surged by 46.24% year-on-year to 14.73 billion yuan [2] Financial Performance and Cost Management - The revenue from testing equipment was 3.10 billion yuan, up 6.32% year-on-year, while the gross margin decreased by 4.66 percentage points to 26.56% [2] - Revenue from environmental and reliability testing services reached 4.87 billion yuan, with a year-on-year increase of 5.75% and a gross margin of 54.95%, down 0.79 percentage points [2] - The company has implemented cost control measures, resulting in a decrease in sales expense ratio to 6.48% and management expense ratio to 10.75% in Q2 2025 [2] Profit Forecast and Valuation - The company is projected to achieve net profits attributable to shareholders of 3.06 billion yuan, 3.72 billion yuan, and 4.54 billion yuan for 2025, 2026, and 2027 respectively, corresponding to price-to-earnings ratios of 27x, 22x, and 18x [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][47][48] Core Views - The company has shown robust growth in the first half of 2025, with revenue and net profit increasing by 8.09% and 14.18% respectively, driven by strong performance in integrated circuit testing and emerging field services [1][3] - The company is expected to benefit from the domestic high-end testing equipment localization trend and the rigid demand in sectors such as new energy vehicles, integrated circuits, and aerospace [3][47] - The estimated reasonable valuation range for the company is between 18.98 and 21.09 yuan, with projected net profits for 2025-2027 being 2.89, 3.58, and 4.34 billion yuan respectively [3][46][47] Financial Performance Summary - In the first half of 2025, the company's revenue and net profit were 991 million and 117 million yuan, with gross and net profit margins at 41.88% and 13.51% respectively [1] - For Q2 2025, revenue and net profit reached 561 million and 76 million yuan, reflecting year-on-year growth of 18.39% and 26.14% [1] - The company’s revenue from testing equipment, environmental and reliability testing services, and integrated circuit verification and analysis services for the first half of 2025 were 310 million, 487 million, and 155 million yuan, with respective year-on-year growth rates of 6.32%, 5.75%, and 21.01% [2] Revenue and Profit Forecast - The company is projected to achieve revenues of 22.95 billion, 25.96 billion, and 29.24 billion yuan for 2025, 2026, and 2027, with corresponding growth rates of 13.34%, 13.11%, and 12.65% [21][30] - The forecasted net profits for the same period are 2.89 billion, 3.58 billion, and 4.34 billion yuan, with growth rates of 25.81%, 23.88%, and 21.42% [30][46] Valuation Metrics - The company’s estimated PE ratios for 2025, 2026, and 2027 are 29, 23, and 19 respectively [3][46] - The estimated PB ratio for 2025 is 2.9, which is below the average of comparable companies [40][48] - The company’s historical PE valuation has fluctuated, with a current level above 29, indicating potential for further valuation recovery [43][45]

Core Viewpoint - The report from Zhongyou Securities indicates that Su Shi Testing achieved a net profit attributable to shareholders of 117 million yuan in the first half of 2025, representing a year-on-year increase of 14.18% [1] Financial Performance - In Q1 2025, the company reported a net profit of 41 million yuan, showing a year-on-year decline of 3% - In Q2 2025, the net profit increased to 76 million yuan, with a year-on-year growth rate of 26% [1] - The significant improvement in Q2 performance compared to Q1 is attributed to strong demand in both the testing equipment and testing services sectors [1] Market Outlook - The company maintains an optimistic outlook for the second half of the year, expecting continued growth in testing equipment and environmental testing services [1] - The integrated circuit sector has shown remarkable performance, contributing to the overall positive market sentiment [1] Long-term Growth Potential - The company is focused on enhancing its technical reserve capabilities and actively exploring emerging fields, which is expected to provide long-term growth opportunities [1] - The projected PE valuations for the company from 2025 to 2027 are 28.49, 23.62, and 19.83 respectively, supporting a "buy" rating [1]