Incident: The company released its 2024 quarterly report. 2024Q1 achieved revenue of 442 million yuan (+1.03%) and net profit to mother of 42 million yuan (-4.86%).
2024Q1's revenue increased slightly, and the results were in line with expectations. 2024Q1 achieved revenue of 442 million (+1.03%) and net profit of 42 million yuan (-4.86%), which is in line with expectations. Profit side performance fell short of revenue side, with net interest rate falling to 10.21% (-1.57pct), of which: ① gross margin fell to 42.47% (-0.99pct), or because fund-raising production capacity was still climbing; ② the cost ratio increased to 31.13% (+2.19pct) during the period, mainly due to the sales expense ratio +1.31pct year over year, and R&D expense ratio +0.97pct year over year. At the same time, the collection of prior-period accounts receivable increased in 24Q1, and credit impairment losses decreased by 06 billion yuan year-on-year.
Two-wheel drive, more effort, and downstream demand recovery can be expected, which is expected to drive the company's performance to gradually recover. Environmental testing equipment: The company has strengthened research on key core technologies, promoted the transformation of test systems to integration, high-end and digital transformation, and has achieved certain technical breakthroughs in the development of hydraulic test systems. Environmental testing service: On the supply side, the company continues to focus on capacity building, building special laboratories such as Mianyang and Guiyang in 23, and embarking on a strategy to expand the Thai laboratory and refine service network construction; accelerate the construction progress of the NEV product testing center expansion project and the fifth-generation mobile communication performance testing technology service platform project. It is expected to be officially put into operation in the second half of 2024. On the demand side, demand in the company's downstream sector is expected to gradually recover in '24, driving the gradual recovery of performance. Integrated circuit verification: Yite's equipment is expected to be basically in place and installation and commissioning completed, and production capacity will begin to be released one after another. As downstream demand gradually recovers, equipment utilization will increase, and profitability will also improve.
The leading environmental testing company has full capabilities, focuses on emerging industries, and is expected to cultivate more new tracks in the future. The company can provide customers with comprehensive one-stop comprehensive testing services for the environment and reliability of the entire industry chain, from chips to components to terminal equipment products. Continuously exploring new technologies, new customers, and new markets has always been the driving force for the company's development. From a technical point of view, the basic technology for the testing business is somewhat generic. Currently, the company closely follows the development of emerging industries on the application side, continuously improves special testing capabilities, expands service areas, and seizes development opportunities, and is expected to cultivate more new tracks in the future.
Maintaining the previous forecast, the company's EPS is expected to be 0.78, 0.97, and 1.21 yuan in 24-26. Referring to the comparable company's PE 21 times in 24, the target price is 16.38 yuan, and the target price is 16.38 yuan.
Risk warning
The progress of production capacity release falls short of expectations; downstream demand falls short of expectations; risk of falling military procurement prices