Dongwu Securities: Upgraded Guangdian Metering to an Overweight rating

Soochow Securities Co., Ltd. analysts Zhou Ershuang and Wei Yijie recently conducted research on Guangdi Measurement and released a research report titled “2025 Annual Report Review: Attributable Net Profit +21%, in Line with Expectations—We Look Favorably on the Company’s Strategic Emerging Segment Growth Potential,” and issued a “Buy/Accumulate” rating for Guangdi Measurement.

Guangdi Measurement (002967)

Key Investment Points

Performance meets our expectations; strategic emerging segments drive growth

In 2025, the company achieved total operating revenue of RMB 3.6 billion, up 12% year over year, and attributable net profit of RMB 420 million, up 21% year over year, which is in line with our expectations. In single Q4, revenue was RMB 1.19 billion, up 13% year over year, and attributable net profit was RMB 190 million, up 14% year over year; profit growth was affected by the concentration of expense accruals. By business segment, strategic emerging segments such as integrated circuits and data science lead growth: ① Measurement services: revenue in 2025 was RMB 760 million, up 2% year over year; ② Reliability and environmental testing: revenue in 2025 was RMB 890 million, up 15% year over year; ③ Life sciences: revenue in 2025 was RMB 470 million, down 5% year over year; ④ Electromagnetic compatibility: revenue in 2025 was RMB 420 million, up 18% year over year; ⑤ Integrated circuit testing: revenue in 2025 was RMB 310 million, up 21% year over year; ⑥ Data science: revenue in 2025 was RMB 270 million, up 126% year over year; ⑦ EHS evaluation services: revenue in 2025 was RMB 130 million, down 27% year over year.

Gross margin of core business remains stable; net margin continues to improve

In 2025, the company’s sales gross margin was 46.8%, down 0.4 percentage points year over year, while its sales net margin was 12.3%, up 1.1 percentage points year over year. The net margin improvement is mainly benefited from a reduction in impairment losses (credit impairment losses narrowed by about RMB 54 million / impacting net margin by 1.5 percentage points). By segment, except for EHS evaluation services, gross margins remain stable: ① Measurement services: gross margin in 2025 was 49.9%, down 0.6 percentage points year over year; ② Reliability and environmental testing: gross margin in 2025 was 50.6%, down 0.3 percentage points year over year; ③ Life sciences: gross margin in 2025 was 40.2%, down 0.4 percentage points year over year; ④ Electromagnetic compatibility: gross margin in 2025 was 55.1%, up 0.1 percentage points year over year; ⑤ Integrated circuit testing: gross margin in 2025 was 45.7%, up 0.5 percentage points year over year; ⑥ Data science: gross margin in 2025 was 54.8%, down 1.1 percentage points year over year; ⑦ EHS evaluation services: gross margin in 2025 was 28.0%, down 10 percentage points year over year. In 2025, the company’s period expense ratio was 33.8%, up 1.3 percentage points year over year, including sales/administrative/R&D/financial expense ratios of 14.6%/6.9%/11.2%/1.2%, respectively, up 0.4/0.1/0.4/0.5 percentage points year over year.

Accelerate deployment in strategic emerging tracks; optimistic about the company’s long-term growth potential

Since 2024, the company has undergone strategic transformation, moving from a comprehensive testing and inspection institution to focusing on national strategic segments. The central driver of revenue growth has moved upward, and the company’s net margin has reached an upward turning point. In 2026, the company’s share issuance for fundraising is scheduled to be completed; it will raise RMB 1.3 billion and also use its own funds, to invest in emerging tracks such as commercial aerospace and integrated circuits, ensuring mid-to-long term growth, including: (1) Aircraft equipment (including low-altitude) testing platforms: investing RMB 340 million to serve the aircraft equipment industry and the low-altitude economy. By leveraging mature markets in the East China region such as Jiangsu and Shanghai, it will strengthen testing, inspection, and certification capabilities; (2) AI chip testing platforms: investing RMB 290 million to enhance AI testing and experimental capabilities and equipment capabilities, serving as a supplement to traditional integrated circuit testing and analysis businesses; (3) Satellite internet quality assurance: investing RMB 340 million to enhance equipment testing and certification capabilities in Guangzhou and Chengdu.

Earnings forecast and investment rating:

Given the company’s strategic emerging segment is growing rapidly, we expect the company’s attributable net profit for 2026–2028 to be RMB 0.51 (original value 0.50)/0.62 (original value 0.59)/0.74 billion, respectively. The current market value corresponds to PE ratios of 25/21/18X, respectively. We maintain the “Buy/Accumulate” rating.

Risk Warning: Deterioration in competitive landscape, share issuance project construction falling short of expectations, etc.

Latest details of earnings forecasts are as follows:

Within the company’s latest 90 days, a total of 1 institution has issued a rating for this stock, with 1 rating of “Buy.”

The above content has been compiled by Securities Star from publicly available information and generated by an AI algorithm (the cybersecurity filing number 310104345710301240019). It does not constitute an investment recommendation.