The equity incentive plan is issued. On June 26, 2023, the company issued an announcement on the granting of restricted shares to incentive targets. The number of restricted shares to be granted in the new phase of equity incentive is 3.338 million shares, accounting for about 0.65% of the total share capital of the company at the time of the release of this incentive plan. The total number of people to be granted under this incentive plan shall not exceed 223, including company directors, senior managers and core business (technical) personnel at a price of 15.70 yuan per share. The assessment target is that the net profit is not less than 300 million yuan in 2023 and not less than 400 million yuan in 2024. With the company's 2022 net profit of 255 million yuan as a reference, the 23-year homing net profit target increased by 17.65% compared with the same period last year.

The policy of data elements is good for "one network management". On June 20, 2023, the Beijing Municipal people's Government issued the implementation opinions on giving better play to the role of data elements and further speeding up the development of the digital economy, with the goal of fully mining the value of data assets and creating a hub for the allocation of data elements. by 2030, the market scale of data elements in this city will reach 200 billion yuan, basically completing the pilot work of the national data basic system, and forming a data service industry agglomeration area. On July 13, Changsha data Resources Administration Bureau issued the interim measures for the Management of Government data Operation in Changsha (draft for soliciting opinions), which put forward the goal of "effectively mining the value of data resources, promoting the market-oriented reform of data elements, and increasing government revenue." the goal of nurturing the construction of smart cities and promoting the development of digital economy defines the types, contents and subjects of government data operation. It also divides the functions and responsibilities of each department and each subject. We believe that with the successive release of policies related to data elements, the potential of the company in the data elements market is worthy of attention. At the sixth Digital China Construction Summit on April 28, the company released the "data elements White Paper" of "Urban Operation" and "Network Management". "one network unified management" is an important starting point for the party committee government to realize the digital transformation of the government and drive the modernization of urban governance, the core platform of digital government and intelligent city, and an important means to promote the modernization of urban governance system and governance ability. As the core platform of the whole urban governance, "one network management" will produce a huge amount of gold mine of data elements, which can fully tap the value of data elements and give full play to the multiplier effect of data elements. Focusing on the resource, capitalization and capitalization of data elements, focusing on "activating the potential of data elements, enhancing the kinetic energy of digital economy, and improving the level of digital governance", the company takes the whole life cycle of "one network management" data elements as the core. through the three value releases of data elements, we can achieve data support business penetration, data resource utilization, and improve the level of urban digital governance. Data promote mathematical decision-making, data capitalization, improve the level of urban digital decision-making; data flow external empowerment, data capitalization, to achieve the release of market dominant value.

Profit forecast and investment advice: we believe that the company has become an industry benchmark in the field of "one network management" and is expected to gain a larger market share in the urban operation management service platform market. In addition, the planning of the equity incentive plan for the next two years also demonstrates the company's confidence in development. We estimate that the net return of 2023 PE 2024 2025 is RMB 414,505 million, EPS is RMB 0.54, PE is 56-60 times for 2023, reasonable value range for 6 months is RMB 30.24-32.40, maintaining the "better than the market" rating.

Risk hint: the policy fell short of expectations.