Integrity Technology (688244) 华创证券·2024-07-24 07:31Investment Rating - The report upgrades the investment rating of the company to "Strong Buy" [1][12]. Core Views - The company has announced a stock incentive plan, reflecting confidence in its future operations, with revenue targets set for 2024-2026 at no less than 4.36 billion, 7.5 billion, and 14.5 billion yuan respectively [1][12]. - The "Digital Wind Tunnel" business is expected to become a core development path, with revenue targets of 1.5 billion, 3 billion, and 9 billion yuan for the same period [1][12]. - The company has demonstrated technological leadership in its network range, which has been recognized with multiple awards, supporting revenue growth [12]. Financial Summary - Total revenue for 2023 is projected at 396 million yuan, with a year-on-year growth of 19.7%. Revenue is expected to reach 480 million in 2024, 678 million in 2025, and 951 million in 2026, with growth rates of 21.3%, 41.2%, and 40.3% respectively [2][12]. - The net profit attributable to the parent company is forecasted to be 31 million yuan in 2023, with a significant increase to 72 million in 2024, 104 million in 2025, and 152 million in 2026, reflecting growth rates of -38.8%, 132.6%, 44.3%, and 45.4% respectively [2][12]. - The earnings per share (EPS) are expected to rise from 0.30 yuan in 2023 to 1.48 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 86 to 18 over the same period [2][12]. Valuation - The target price for the company is set at 35.5 yuan, based on a 50x P/E ratio for 2024, indicating significant upside potential from the current price of 26.15 yuan [12][32].