IRAY TECHNOLOGY(688301) 海通证券·2024-03-16 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company achieved a revenue growth of 21.72% in 2023, with total revenue reaching 1.886 billion yuan. However, the net profit attributable to shareholders decreased by 3.53% to 619 million yuan, primarily due to changes in the fair value of trading financial assets. The non-recurring net profit increased by 15.97% to 599 million yuan [3][4] - The company's gross margin showed a steady increase, with a gross margin of 58.70% for the first three quarters of 2023, up by 0.20 percentage points year-on-year. The gross margin for the third quarter was 59.68%, an increase of 1.25 percentage points year-on-year [4] - The company is increasing its R&D investment, with R&D expenses reaching 184 million yuan in the first three quarters of 2023, a year-on-year increase of 12.61%, accounting for 13.17% of revenue [4] - An incentive plan was announced, aiming for a non-recurring net profit target of no less than 1 billion yuan by 2025, reflecting the company's confidence in future growth [4] - Earnings per share (EPS) are projected to be 6.08, 7.76, and 9.79 yuan for 2023, 2024, and 2025 respectively, with net profit growth rates of -3.3%, 27.7%, and 26.2% [4][5] Financial Summary - The company reported total revenue of 1.886 billion yuan in 2023, with a year-on-year growth of 21.72%. The projected revenues for 2024 and 2025 are 2.385 billion yuan and 2.993 billion yuan respectively, indicating growth rates of 26.5% and 25.5% [5][8] - The gross margin is expected to remain stable, with projections of 58.4% for 2023, 58.5% for 2024, and 58.7% for 2025 [5][8] - The net profit attributable to shareholders is projected to be 620 million yuan in 2023, with a decrease of 3.3%, followed by increases of 27.7% and 26.2% in the subsequent years [5][8] Valuation - The company is assigned a price-to-earnings (P/E) ratio of 35-40 times for 2024, leading to a reasonable valuation range of 271.59 to 310.39 yuan per share [4][7]