Centre Testing Int'l (300012.SZ): Key Takeaways from Investor Day Q&A with CEO: Growth Trajectory into 2030 Plan

Citi attended CTI's investor day and Q&A session with the CEO on 16 October. Key takeaways: 1) CTI sets the revenue CAGR at 13-16% based on 7-10% organic growth and 5-6% inorganic growth mainly via M&A overseas; 2) net margin will grow to 18% in 2030 from 15.4% in 2025; 3) output value per headcount has ample room to grow further; 4) the overseas segment will account for ~20% of total revenue in coming years from ~11% currently. We see the higher growth drivers to achieve the 2030 plan would be overseas and P&M. The 2030 plan should give investors more confidence in long-term growth visibility. The stock has outperformed the SZ A-share index by 18% month-to-date. We maintain Buy with a target price of Rmb24.00.