Dingtong(SH:688668) Minsheng Securities·2024-03-15 16:00Investment Rating - The report maintains a "Recommended" rating for the company [5][12]. Core Views - The company has introduced an equity incentive plan, which is expected to enhance employee motivation and improve governance [5]. - The performance targets for the incentive plan are ambitious, with net profit growth targets of 50%/110%/173% for 2024-2026 compared to 2023 [5]. - The company is expanding its communication business and increasing its focus on the automotive sector, collaborating with major clients like BYD and Changan [5]. - Revenue projections for 2023-2025 are estimated at 698 million, 1.191 billion, and 1.764 billion yuan, respectively, with net profits expected to reach 72 million, 203 million, and 308 million yuan [5]. Financial Summary - Total revenue (in million yuan): 839, 698, 1,191, 1,764 for 2022A, 2023E, 2024E, and 2025E respectively, with growth rates of 47.7%, -16.8%, 70.6%, and 48.2% [2][7]. - Net profit attributable to shareholders (in million yuan): 168, 72, 203, 308 for the same years, with growth rates of 54.0%, -57.5%, 184.1%, and 51.2% [2][7]. - Earnings per share (in yuan): 1.70, 0.72, 2.05, 3.10 for the respective years [2][7]. - Price-to-earnings (PE) ratios are projected at 26, 60, 21, and 14 for 2022A, 2023E, 2024E, and 2025E respectively [2][7]. - Price-to-book (PB) ratios are expected to be 2.5, 2.5, 2.3, and 2.0 for the same years [2][7].