Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - In the first half of 2025, the company achieved total revenue of 1.48 billion yuan, a year-on-year increase of 10%, and a net profit attributable to shareholders of 97 million yuan, up 22% year-on-year [2] - The growth was primarily driven by the strategic and technology sectors, with Q2 revenue increasing by 14% year-on-year [2] - The company plans to raise no more than 1.3 billion yuan for investments in testing platforms for aviation equipment, AI chips, and satellite internet, indicating strong long-term growth potential [5] Revenue and Profitability - The company’s total revenue forecast for 2023A to 2027E shows a steady growth trajectory, with expected revenues of 2,889 million yuan in 2023A and 4,330 million yuan in 2027E, reflecting a compound annual growth rate of approximately 10.58% [1] - The net profit attributable to shareholders is projected to grow from 199.39 million yuan in 2023A to 515.44 million yuan in 2027E, with a significant year-on-year increase of 76.59% in 2024A [1] - The gross profit margin for the first half of 2025 was 43.4%, an increase of 1.5 percentage points year-on-year, indicating improved profitability [4] Segment Performance - Revenue from the measurement services segment was 350 million yuan, a year-on-year increase of 1%, reflecting a slowdown due to increased competition [3] - The reliability and environmental testing services segment saw revenue of 370 million yuan, up 18% year-on-year [3] - The integrated circuit testing segment achieved revenue of 130 million yuan, also growing by 18% year-on-year [3] - The data science analysis and evaluation segment experienced the highest growth, with revenue of 65 million yuan, a 47% increase year-on-year [3] Financial Metrics - The company’s latest diluted EPS is projected to increase from 0.34 yuan in 2023A to 0.88 yuan in 2027E, reflecting a positive trend in earnings per share [1] - The current P/E ratio is 63.62 for 2023A, decreasing to 24.61 by 2027E, indicating an improving valuation over time [1] - The company’s asset-liability ratio stands at 45.04%, suggesting a stable financial structure [9]

Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant growth in net profit and revenue, particularly in the integrated circuit testing segment, indicating a positive outlook for future growth driven by industry demand and capacity expansion [2][4]. Financial Performance - In the first half of 2025, the company achieved total revenue of 990 million, a year-on-year increase of 8%, and a net profit attributable to shareholders of 120 million, up 14% year-on-year [2]. - In Q2 alone, the company recorded revenue of 560 million, representing an 18% year-on-year growth, and a net profit of 70 million, which is a 26% increase year-on-year [2]. - The gross profit margin for the first half of 2025 was 41.9%, a decrease of 3.2 percentage points year-on-year, while the net profit margin was 13.5%, an increase of 0.3 percentage points year-on-year [3]. Segment Performance - Revenue from environmental testing services reached 490 million, growing 6% year-on-year, while revenue from environmental testing equipment also grew 6% to 310 million [2]. - The integrated circuit testing segment saw revenue of 160 million, marking a 21% year-on-year increase [2]. - Gross profit margins by segment were as follows: environmental testing services at 55.0% (down 0.8 percentage points), environmental testing equipment at 26.6% (down 4.7 percentage points), and integrated circuit testing at 36.5% (down 6.4 percentage points) [3]. Industry Outlook - The company is well-positioned in the high-barrier testing sector, with a focus on special industries, semiconductors, and new energy vehicles, while also expanding into high-end fields like 5G [4]. - The overall testing and inspection industry in China is projected to reach approximately 470 billion in revenue for 2023, with a year-on-year growth exceeding 9%, indicating a broad market opportunity [4]. - Future growth is expected to be driven by the recovery of special industry demand, domestic chip production, and the release of capacity from newly expanded laboratories in Suzhou, Xi'an, Qingdao, and Chengdu [4].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's Q2 net profit attributable to shareholders increased by 26% year-on-year, exceeding expectations, with the integrated circuit testing segment showing remarkable growth [3] - In the first half of 2025, the company achieved total operating revenue of 990 million yuan, a year-on-year increase of 8%, and a net profit of 120 million yuan, up 14% year-on-year [3] - The company is expected to benefit from the demand recovery in special industries and the domestic semiconductor supply chain, with performance growth likely to continue [5] Financial Performance Summary - For the first half of 2025, the company's gross profit margin was 41.9%, a decrease of 3.2 percentage points year-on-year, while the net profit margin was 13.5%, an increase of 0.3 percentage points year-on-year [4] - The revenue from the environmental testing services segment was 490 million yuan, up 6% year-on-year, while the integrated circuit testing segment generated 160 million yuan, a growth of 21% year-on-year [3][4] - The company has adjusted its net profit forecasts for 2025-2027 to 2.8 billion yuan, 3.5 billion yuan, and 4.3 billion yuan respectively, with corresponding P/E ratios of 30, 24, and 19 [11]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 20.10, up from the previous RMB 19.95 [4][6]. Core Insights - The company reported better-than-expected performance in its half-year results for 2025, with revenue of RMB 999 million (up 8.1% year-on-year) and net profit attributable to shareholders of RMB 117 million (up 14.2% year-on-year) [1]. - The company is expected to benefit from a favorable industry environment and a sufficient order backlog, leading to continuous growth in performance from 2025 to 2027 [1][2]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of RMB 999 million, with a year-on-year growth of 8.1%. The net profit attributable to shareholders was RMB 117 million, reflecting a year-on-year increase of 14.2% [1]. - The second quarter of 2025 saw revenue of RMB 561 million, representing a year-on-year increase of 18.4% and a quarter-on-quarter increase of 30.8% [1]. Revenue Breakdown - The revenue from environmental testing services was RMB 487 million (up 5.8% year-on-year) with a gross margin of 55.0% (down 0.8 percentage points) [2]. - Integrated circuit testing revenue reached RMB 155 million (up 21.0% year-on-year) with a gross margin of 36.5% (down 6.4 percentage points) [2]. - Testing equipment revenue was RMB 310 million (up 6.3% year-on-year) with a gross margin of 26.6% (down 4.7 percentage points) [2]. Cash Flow and Capital Expenditure - The company's net operating cash flow for the first half of 2025 was RMB 99 million, an increase of 29.3% year-on-year, attributed to improved collection mechanisms [3]. - Capital expenditure was RMB 217 million, a decrease of 7.5% year-on-year, mainly due to reduced equipment purchases [3]. Profit Forecast - The report maintains profit forecasts for 2025-2027, estimating net profits attributable to shareholders of RMB 289 million, RMB 357 million, and RMB 429 million respectively [4]. - The expected compound annual growth rate (CAGR) for net profit from 2023 to 2027 is projected at 23%, which is higher than the average of comparable service companies at 21% [4].