Gan & Lee(SH:603087) Guohai Securities·2024-02-20 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The stock incentive plan enhances development confidence and increases performance certainty [1] - The incentive plan includes granting 7.13 million restricted stocks, accounting for 1.20% of the total share capital, with an exercise price of 19.79 CNY per share [3] - The plan covers a wide range of personnel, including directors, senior management, and 80 core technical staff, which is expected to boost the company's competitive ability and employee motivation [3] - The performance assessment targets are ambitious, with net profit requirements of at least 600 million CNY in 2024, 1.1 billion CNY in 2025, and 1.43 billion CNY in 2026 [3] - The company focuses on core business and continues to strengthen internal growth drivers, leading to an adjustment in profit forecasts [3] Financial Performance Summary - The projected revenue for 2023-2025 is 2.45 billion CNY, 3.22 billion CNY, and 4.12 billion CNY respectively, with corresponding net profits of 340 million CNY, 639 million CNY, and 1.107 billion CNY [5][6] - The expected P/E ratios for 2023, 2024, and 2025 are 72.52x, 38.60x, and 22.27x respectively [5][6] - The company’s revenue growth rates are projected at 43% for 2023, 31% for 2024, and 28% for 2025 [5][6] - The company’s return on equity (ROE) is expected to improve from -5% in 2022 to 9% in 2025 [6]