Introduction to this report:

Testing laboratories have been producing one after another, driving 24H1's revenue up 17% year over year. High-end scientific instruments and electron microscopes have been delivered to research institutes, national key R&D projects have been launched, and continuous research and development to broaden the product line.

Key points of investment:

Maintain an “Overweight” rating. We maintain the company's 2024-2026 net profit forecasts of 0.172, 0.196, and 0.243 billion yuan, respectively, and the corresponding EPS of 0.45, 0.51, and 0.63 yuan, respectively.

According to comparable analytical instruments and inspection and testing service companies, the average PE value in 2025 was 23 times, the company was given 23 times PE in 2025, and the target price was lowered to 11.74 yuan (originally 16.44 yuan) to maintain the “gain” rating.

All major businesses have achieved growth, and the performance is basically in line with expectations. 1) With 2024H1, the company achieved operating income of 0.457 billion yuan, a year-on-year increase of 17%; net profit to mother was 48.18 million yuan, an increase of 12% over the previous year. 2) Among them, inspection and testing services achieved revenue of 0.246 billion yuan, an increase of 24% over the previous year; testing and analytical instruments achieved revenue of 0.114 billion yuan, an increase of 13% over the previous year.

Revenue from corrosion protection engineering and products, standard substances/standard samples, and capability verification services increased by 12%, 5%, and 7%, respectively.

Inspection and testing service laboratories were put into operation one after another, and gross margin increased by 2.54% to 46% year-on-year. 1) The company's laboratories in Chengdu, Kunshan, Qingdao and other places have achieved production results. ① The revenue of the Chengdu subsidiary 24H1 increased 23% year-on-year. ② The sales revenue of the Jiangsu subsidiary 24H1 increased 149% year-on-year. ③ The Qingdao Pingdu Laboratory project was fully accepted, and the 24H1 sales revenue of the Qingdao subsidiary increased 18% year-on-year. 2) Laboratory construction and operation are underway in Shenyang, Deyang, Xi'an, Zhuzhou, Zhuozhou, etc. ① Shenyang Nac has obtained all the conditions and qualifications to fully carry out related business, and will soon be fully put into operation. The Shenyang subsidiary 24H1 has achieved revenue of 1.65 million yuan.

② Zhuozhou laboratory specimen processing workshop was put into operation. ③ Xi'an and Deyang laboratories obtained CMA qualifications and started trial operation. 3) The company's laboratories have successively achieved production results, and the gross margin of inspection and testing services increased by 2.54% to 46% year-on-year.

National key research and development projects for analytical instruments have been promoted, and electron microscopy products have been successfully delivered to research institutes.

1) The company's analytical instrument business officially launched the “X-ray Photoelectron Spectrometer” project, a national key research and development program based on eight categories of products including scanning electron microscopes, ICP mass spectrometers, and ICP spectrometers. 2) In 2022, the company released the FE-1050 series, the first field emission scanning electron microscope equipped with high-end imaging instruments in China. At present, the independent design rate has reached 100%, the localization rate of complete machine parts has reached 95%, and the products have been successfully delivered to the China Institute of Engineering Physics and other units.

Risk warning: risk of technology iteration, industry policy changes, accounts receivable recovery risk.