安全产品增速回暖，运营商保持较高增长

Investment Rating - Maintain "Buy" rating for Dipu Technology (300768 SZ) [1][29] Core Views - Dipu Technology's revenue in 2023 reached RMB 1 033 billion (+15 77% YoY) with net profit attributable to shareholders of RMB 127 million (-15 44% YoY) [1][13] - In Q1 2024 the company achieved revenue of RMB 255 million (+10 16% YoY) and net profit attributable to shareholders of RMB 37 million (+12 37% YoY) [1][13] - The company's security products segment showed significant recovery with revenue of RMB 691 million (+25 82% YoY) while application delivery and network products revenue declined to RMB 267 million (-4 20% YoY) [1] - The operator market maintained high growth with revenue of RMB 273 million (+29 84% YoY) [1] Business Performance - Gross margin improved to 68 83% up by 1 04 percentage points YoY [1][15] - The company expanded its workforce by 199 employees (+13 35% YoY) with a 29% increase in sales personnel leading to higher operating expenses [1] - Sales expenses increased by 32 93% to RMB 403 million while R&D expenses grew by 4 40% to RMB 251 million [1] - The company launched an employee stock ownership plan in March 2024 covering up to 147 participants with a total of 3 785 million shares [1] Industry and Market Position - Dipu Technology is the only manufacturer with a full range of security products selected in China Mobile's centralized procurement [1] - The company has a strong competitive advantage in the application delivery sector with high-end products capable of 400G throughput performance [1] - In the power industry the company holds over 50% market share and is the only domestic application delivery provider for State Grid Corporation [1] Financial Forecasts - Revenue for 2024-2026 is projected to be RMB 1 246 billion RMB 1 537 billion and RMB 1 871 billion respectively [26][27] - Net profit attributable to shareholders for 2024-2026 is expected to be RMB 180 million RMB 244 million and RMB 324 million respectively [26][27] - EPS for 2024-2026 is forecasted at RMB 0 28 RMB 0 38 and RMB 0 50 respectively [26][27] - The company's PE ratio for 2024-2026 is estimated at 40x 29x and 22x respectively [29]