Integrity Technology (SH:688244) Haitong Securities·2024-05-31 03:01Investment Rating - The report assigns an "Outperform the Market" rating to the company [18]. Core Views - The company focuses on cybersecurity and has launched the "Digital Wind Tunnel" product system, which opens new growth opportunities in the testing and evaluation sector. The company is also expanding into international markets, particularly Hong Kong, to replicate its domestic success [9][20]. Financial Performance - In 2023, the company achieved a revenue of 396 million yuan, a year-on-year increase of 19.72%, while the net profit was 31 million yuan, down 38.78% year-on-year. The decline in profit is attributed to increased R&D and marketing expenses [7][8]. - The company expects revenues of 506 million yuan in 2024, with net profits projected at 60 million yuan, reflecting a significant recovery [9][11]. Product Development and Market Position - The "Digital Wind Tunnel" product system has been applied in various sectors, generating revenue of 101 million yuan in 2023. The company's network attack simulation products have a market share that positions it as a leader in the industry [3][9]. - The company has signed a memorandum of cooperation with Cyberport in Hong Kong to establish a digital security evaluation center, which will enhance its presence in the Hong Kong market [20]. Future Projections - The company forecasts revenue growth to 635 million yuan in 2025 and 803 million yuan in 2026, with corresponding net profits of 100 million yuan and 129 million yuan [9][11]. - The report anticipates a dynamic PE ratio of 60-70 times for 2024, with a reasonable value range of 52.07-60.75 yuan over the next six months [9].