Maintain an increase in holdings rating. The company's test equipment and environmental testing services have maintained steady growth. Short-term pressure for integrated circuit testing is expected to gradually resume, maintaining EPS of 0.76/0.95 yuan in 2024-25, adding 1.13 yuan of EPS in 2026, maintaining a target price of 17.48 yuan, and increasing the rating.
Performance is in line with expectations: The company announced its 2023 annual report, which achieved revenue of 2.17 billion yuan (YoY +17.26%), net profit of 314 million yuan (YoY +16.44%), net profit net of non-return mother of 280 million yuan (YoY +17.08%), in line with expectations; achieved revenue of 590 million yuan in a single quarter (+8.24% YoY, +5.77%), net profit to mother of 94 million yuan (YoY +3.03%, +11.14% YoY), net profit of 0.75 million yuan (YoY- YoY) 2.47%, -1.80% month-on-month).
Test equipment and environmental testing services are growing steadily, and integrated circuit testing is under pressure for a short period of time. By product, the company's test equipment achieved revenue of 753 million yuan (+23.00% year over year), mainly due to increased customer demand in the new energy industry and testing institutions; environmental testing services achieved revenue of 1.03 billion yuan (+19.45% year over year), and the company continued to increase investment in new energy, energy storage, aerospace, wireless communications, medical devices, etc., which is expected to maintain steady development; integrated circuit testing achieved revenue of 257 million yuan (+2.34% year over year), due to the rapid expansion of equipment production capacity and talent reserves Increased, and profitability was affected in the short term.
Actively expand application areas and accelerate production capacity layout. The company continues to improve its layout in the fields of new energy and wireless communication, and is speeding up the construction of new energy vehicle testing and expansion projects and fifth-generation mobile communication testing projects. It is expected to be put into operation in the second half of 2024, and the laboratory scale and production capacity are expected to expand further.
Risk warning: Integrated circuit testing expansion falls short of expectations; production capacity release falls short of expectations.