Investment Rating - The report maintains a positive outlook on the AI industry, suggesting continued attention to investment opportunities within the sector [3][7]. Core Insights - The national emphasis on AI development is highlighted, with significant political support from President Xi Jinping, who underscored the importance of self-reliance and application orientation for healthy AI growth [2][7]. - The "Model Speed Space" in Shanghai is identified as a key innovation hub for AI, representing a comprehensive industry chain and expected to enhance industry momentum [2][7]. - The integration of young talent and academia is seen as a catalyst for accelerating the commercialization of AI technologies, with a focus on leveraging China's large pool of engineers and youth [2][7]. - The report emphasizes the diverse applications of AI products, advocating for quality and safety in development, and notes the vast market potential in China [2][7]. Summary by Sections National Policy and Industry Development - The report discusses the recent collective study by the Political Bureau of the CPC Central Committee on AI, indicating a strong governmental push for the sector [2][3]. - President Xi's visit to Shanghai reinforces the strategic importance of AI in national development, aiming to position Shanghai as a global tech innovation center [2][7]. Key Companies and Investment Opportunities - Recommended companies include Hehe Information, Sie Consulting, Digiwin Software, ArcSoft, Wondershare Technology, Kingdee International, Kingsoft Office, and Hygon Information Technology, with Cambricon Technologies identified as a beneficiary [3][7]. - The report provides earnings forecasts for these companies, indicating potential growth in EPS and PE ratios over the next few years [5]. Market Dynamics and Product Development - The report notes the flourishing of AI applications across various sectors, emphasizing the need for safe and reliable products to ensure long-term growth [2][7]. - The "Model Speed Space" showcases a range of AI products, reflecting a shift from "Made in China" to "Intelligent Manufacturing in China" [2][7].

Investment Rating - The investment rating for the company is maintained at Buy-A with a target price of 44.50 CNY, reflecting a dynamic price-to-earnings ratio of 60 times for 2025 [5][9]. Core Insights - The company has achieved steady growth in revenue and net profit despite undergoing a brand transformation and strategic adjustment, shifting from "Dingjie Software" to "Dingjie Smart" [2][9]. - In 2024, the company reported total revenue of 2.331 billion CNY, a year-on-year increase of 4.62%, and a net profit of 156 million CNY, up 3.59% year-on-year [1][9]. - The company is positioned as a leader in the industrial software sector, particularly in the manufacturing ERP market, holding a 14.8% market share among domestic vendors [2][9]. Revenue and Profitability - The company’s revenue for Q1 2025 was 423 million CNY, reflecting a 4.33% year-on-year growth, while the net profit was -8.33 million CNY, showing a 14.04% increase year-on-year [1]. - The projected revenues for 2025, 2026, and 2027 are 2.589 billion CNY, 2.903 billion CNY, and 3.309 billion CNY respectively, with net profits expected to be 201 million CNY, 249 million CNY, and 294 million CNY [9][11]. Business Segments - The company has diversified its offerings across four major categories of industrial software: R&D design, digital management, production control, and AIoT, with significant revenue growth in each segment [3][4]. - The R&D design segment generated 152 million CNY in revenue in 2024, a 23.33% increase, while the AIoT segment achieved 631 million CNY, growing by 22.04% [3]. Technological Advancements - The Athena platform and AI Agent products are pivotal in expanding the company's growth potential, integrating advanced technologies such as AI, big data, and knowledge graphs [4][8]. - The global AI Agent market is projected to grow from 5.29 billion USD in 2024 to 216.8 billion USD by 2035, with a compound annual growth rate of 40.15% [8]. Market Position - The company has a strong presence in the Taiwan region, serving 77% of publicly listed enterprises, and has accumulated extensive international experience by servicing approximately 800 clients in Southeast Asia [2][9]. - In the Chinese mainland, the company ranks first among domestic vendors in the PLM market and holds a top-three position in MES products across various high-tech industries [2].

Group 1 - The computer index has outperformed the CSI 300 index since the beginning of the year, with a rise of 2.35% compared to a decline of 4.18% for the CSI 300 index as of April 30, 2025, ranking sixth among all primary industries [4][10]. - The fund holding ratio for the computer industry stocks was 3.82% at the end of Q1 2025, a decrease of 0.16 percentage points from the previous quarter, indicating a historical low [4][27]. Group 2 - Two core trends are emphasized: the comprehensive prosperity of AI and the robust development of domestic innovation [5]. - The AI sector is entering a prosperous era, with significant advancements in models, computing power, and applications, highlighted by the rapid evolution of OpenAI's models and the emergence of domestic models like Deepseek [5][35]. - The "Great Innovation" trend indicates that domestic software and hardware are gradually becoming more user-friendly, with a potential acceleration in replacement rhythms due to changes in the global trade environment and national encouragement for technological self-reliance [5]. Group 3 - Investment recommendations include companies benefiting from AI applications such as Kingsoft Office, Dingjie Zhizhi, and Keda Xunfei, among others, while computing power recommendations include Haiguang Information and Sugon Information [6]. - For the "Great Innovation" trend, recommended companies include Dameng Data, Taiji Co., and China Software International, with beneficiaries like China Great Wall and Tsinghua Unigroup [6]. Group 4 - The AI model sector is rapidly evolving, with OpenAI's models like GPT-4 and its successors leading the way, while domestic companies are also making significant strides in AI model development [39][53]. - The demand for AI computing power is surging, with major cloud service providers like Microsoft, Google, AWS, and Meta showing strong capital expenditure growth, indicating robust market demand for AI capabilities [67][72]. - NVIDIA's data center business has experienced sustained high growth, driven by increasing market demand for AI and high-performance computing [74].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][6]. Core Insights - The company achieved steady growth in its operating performance, with a revenue of 2.331 billion yuan in 2024, representing a year-on-year increase of 4.62%. The net profit attributable to shareholders was 156 million yuan, up 3.59% year-on-year [2]. - In the first quarter of 2025, the company reported a revenue of 423 million yuan, a year-on-year growth of 4.33%, although it recorded a net loss of 8.33 million yuan [2]. - The company is leveraging advancements in AI technology, with significant growth in its AI business in Taiwan, which saw a revenue increase of 135.07% year-on-year [2]. Financial Performance Summary - The company’s revenue for 2025 is projected to be 2.592 billion yuan, with a net profit of 201 million yuan, and an EPS of 0.74 yuan per share. The projected P/E ratios for 2025, 2026, and 2027 are 49.20, 40.96, and 35.33 respectively [4][7]. - The company has been increasing its R&D investment, particularly in its AI platform, which enhances user experience and functionality [3]. - The financial forecasts indicate a steady growth trajectory, with revenues expected to reach 3.114 billion yuan by 2027, and net profits projected to grow to 280 million yuan [7].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][6]. Core Viewpoints - The company has achieved steady growth in its operating performance, with a revenue of 2.331 billion yuan in 2024, representing a year-on-year increase of 4.62%. The net profit attributable to shareholders was 156 million yuan, up 3.59% year-on-year [2]. - In the first quarter of 2025, the company reported a revenue of 423 million yuan, a year-on-year growth of 4.33%, although it recorded a net loss of 8.33 million yuan [2]. - The company is leveraging advancements in AI technology, with significant growth in AI business revenue in Taiwan, which increased by 135.07% year-on-year [2]. - The company is increasing its R&D investment to enhance its AI applications, including the launch of the IndependAI platform, which supports the development of AI Agent applications [3]. Financial Performance Summary - For 2024, the company achieved a total revenue of 2.331 billion yuan, with a net profit of 156 million yuan. The revenue growth rate was 4.62%, while the net profit growth rate was 3.59% [7]. - The forecast for 2025-2027 indicates revenues of 2.592 billion, 2.855 billion, and 3.114 billion yuan, respectively, with net profits projected at 201 million, 242 million, and 280 million yuan [4][7]. - The earnings per share (EPS) are expected to be 0.74, 0.89, and 1.03 yuan for the years 2025, 2026, and 2027, respectively [4][7].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][11]. Core Insights - The company has over 40 years of experience in the industrial manufacturing sector, evolving into a leading software supplier with a focus on ERP products and smart manufacturing solutions [1][18]. - The company is positioned to benefit from the new industrialization process and national policy guidance, maintaining high-quality growth [2]. - The company has developed a multi-agent collaborative platform in the smart manufacturing field, integrating AI applications to enhance operational efficiency [3][43]. Summary by Sections Company Overview - The company has established itself as a leader in industrial software, focusing on digital transformation and innovation in cloud and industrial internet applications [1][18]. - It has a stable shareholding structure with experienced management, enhancing its operational stability [24][26]. Financial Performance - Revenue is projected to grow from 26.57 billion to 36.35 billion yuan from 2025 to 2027, with a compound annual growth rate (CAGR) of 14.03% to 18.23% [4][11]. - Net profit is expected to increase from 1.93 billion to 3.17 billion yuan during the same period, with a CAGR of 23.82% to 29.99% [4][11]. Market Position - The company holds a 14.8% market share in China's manufacturing ERP software market, ranking first among domestic suppliers [2][45]. - It has a strong presence in various sectors, including semiconductor, automotive parts, and equipment manufacturing, with significant market shares in these industries [46][53]. Product and Service Matrix - The company offers a comprehensive product matrix covering four major business areas: R&D design, digital management, production control, and AIoT [40][41]. - The Athena platform integrates advanced technologies such as AI, big data, and IoT to support enterprises in their digital transformation [43][45]. Future Growth Drivers - The integration of AI applications into industrial processes is expected to drive growth, with the company launching a multi-agent protocol to enhance collaboration in manufacturing [3][68]. - The industrial software market is projected to continue growing, driven by the demand for digital transformation in manufacturing [57][65].

Core Viewpoint - Dingjie Smart achieved a revenue of 2.331 billion yuan in 2024, a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 156 million yuan, up 3.6% year-on-year [1] Group 1: Financial Performance - In Q1 2025, the company reported a revenue of 423 million yuan, a year-on-year increase of 4.3%, but a net loss attributable to shareholders of 8.33 million yuan, an increase of 14% year-on-year [1] - The revenue from mainland China and non-mainland regions in 2024 was 1.177 billion yuan and 1.154 billion yuan, respectively, with growth rates of 1.9% and 7.5% [1] - In Q1 2025, revenue from mainland China was 175 million yuan, a year-on-year increase of 6.5%, while non-mainland revenue was 249 million yuan, a year-on-year increase of 2.9% [1] Group 2: Business Growth - The R&D design and AIoT sectors continued to grow rapidly in 2024, with revenues of 1.189 billion yuan, 334 million yuan, 152 million yuan, and 631 million yuan, reflecting growth rates of -1.4%, 0.2%, 23.3%, and 22% respectively [2] - The PLM sector saw a 30% increase in average transaction value due to deep integration of AI with business scenarios [4] - The company is leveraging its Athena platform and integrating various AI capabilities to enhance its product offerings and operational efficiency [4] Group 3: Future Outlook - Revenue projections for Dingjie Smart from 2025 to 2027 are 2.569 billion yuan, 2.817 billion yuan, and 3.057 billion yuan, with net profits of 202 million yuan, 251 million yuan, and 293 million yuan respectively [4] - The company is expected to benefit from the resilience of its operations and the opportunities presented by AI advancements [4]

Core Viewpoint - The company achieved a revenue of 2.331 billion yuan in 2024, with a year-on-year growth of 4.62%, and a net profit attributable to shareholders of 156 million yuan, reflecting a year-on-year increase of 3.59% [1]. Group 1: Financial Performance - In 2024, the company's revenue was 2.331 billion yuan, with a net profit of 156 million yuan and a non-GAAP net profit of 138 million yuan, showing year-on-year growth rates of 4.62%, 3.59%, and 13.18% respectively [1]. - The company's Q1 2025 revenue reached 423 million yuan, marking a year-on-year increase of 4.33%, while the net loss narrowed significantly due to internal efficiency improvements [3]. Group 2: AI Strategy and Implementation - The company has made significant progress in AI applications, enhancing internal efficiency and external revenue generation, with a notable reduction in sales, management, and R&D expense ratios in 2024 [1]. - The revenue from self-developed intelligent software products and integrated hardware solutions was 662 million yuan and 555 million yuan respectively, with year-on-year growth rates of 13.57% and 12.64% [1]. - The AI business in Taiwan saw a remarkable year-on-year revenue increase of 135.07% [1]. Group 3: Market Expansion and Opportunities - The company capitalized on the trend of Chinese enterprises expanding into Southeast Asia, achieving a revenue of 1.177 billion yuan from mainland China and 1.154 billion yuan from non-mainland regions, with the latter growing by 7.53% year-on-year [2]. - The company is expanding its local teams in Thailand, Vietnam, and Malaysia, aiming for over 90% localization in its talent pool to provide timely and in-depth services to clients [2]. Group 4: Earnings Forecast and Valuation - The revenue forecast for 2025-2027 is adjusted to 2.719 billion, 3.206 billion, and 3.816 billion yuan, reflecting a downward revision due to traditional business pressures [4]. - The earnings per share (EPS) forecast for 2025-2027 is raised to 0.84, 1.18, and 1.65 yuan, indicating an upward adjustment of 6% and 18% for the first two years [4]. - The target price is set at 50.40 yuan, based on a 60x PE ratio for 2025, reflecting the company's product and industry advantages [4].

Core Insights - The company's 2024 performance slightly underperformed expectations, while 1Q25 results were generally in line with forecasts [1] Group 1: Financial Performance - In 2024, the company reported total revenue of 2.33 billion, a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 156 million, up 3.6% year-on-year [1] - The 4Q24 revenue was 758 million, a decrease of 6.8% year-on-year, while net profit was 106 million, an increase of 4% year-on-year [1] - For 1Q25, revenue reached 423 million, a year-on-year increase of 4.3%, with a net loss of 8 million, reducing losses by 14% year-on-year [1] Group 2: Business Segments and Growth - Revenue from mainland China in 2024 was 1.18 billion, a year-on-year increase of 2%, while revenue from non-mainland regions was 1.15 billion, up 8% year-on-year [2] - AI-related products in Taiwan saw significant growth, with a 135% increase in revenue and a 58% rise in net profit in 2024 [2] - In 1Q25, signed orders in Southeast Asia increased by 33% year-on-year, indicating overseas expansion as a new growth driver [2] Group 3: Profitability and Margins - The company's gross margin for 2024 was 58%, a decrease of 4 percentage points year-on-year, primarily due to a higher proportion of lower-margin AIoT-related businesses [2] - In 1Q25, the gross margin rebounded to 60%, an increase of 4 percentage points year-on-year, with expectations of reduced stock incentive and share payment expenses in 2025 [2] Group 4: Forecasts and Valuation - The revenue forecast for 2025 has been revised down by 9% to 2.564 billion due to fluctuations in demand from mainland customers, while net profit estimates remain largely unchanged [3] - Revenue forecasts for 2026 have been introduced at 2.852 billion, with net profit projected at 249 million [3] - The target price has been raised by 26% to 39 yuan, based on a 50 times P/E ratio for 2025, indicating a 15% upside potential from the current stock price [3]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company is experiencing robust growth in its AI business, with revenue from AI operations in Taiwan increasing by 135.07% year-on-year in 2024. The PLM product's contract value grew over 20% in Q1 2025 due to AI enhancements, while AIOT applications saw revenue growth exceeding 50% [6] - Internally, AI has improved operational efficiency, leading to a reduction in sales, management, and R&D expense ratios in 2024. The net profit loss, adjusted for non-recurring items, narrowed by 31.92% in Q1 2025, and marketing conversion rates improved by 54% year-on-year [6] - The company is capitalizing on the global manufacturing shift, with non-mainland revenue reaching 1.154 billion yuan in 2024, a 7.53% increase. The local teams in Southeast Asia have a localization rate exceeding 90%, driving significant revenue growth in Thailand and Vietnam [7] - The company reported steady growth in its 2024 annual report, with revenues, net profit, and adjusted net profit reaching 2.331 billion yuan, 156 million yuan, and 138 million yuan respectively, reflecting year-on-year increases of 4.62%, 3.59%, and 13.18% [8] - The revenue forecast for 2025-2027 has been slightly adjusted downwards due to anticipated delays in downstream demand, with projected revenues of 2.677 billion yuan, 3.122 billion yuan, and 3.623 billion yuan for 2025, 2026, and 2027 respectively, representing year-on-year growth rates of 14.8%, 16.6%, and 16.1% [9] Financial Data Summary - In 2024, the company achieved total revenue of 2.331 billion yuan, with a net profit of 156 million yuan, and an adjusted net profit of 138 million yuan [8] - The projected total revenue for 2025 is 2.677 billion yuan, with net profits expected to reach 205 million yuan, reflecting a year-on-year growth of 31.4% [10] - The company’s gross margin is projected to decline from 58.3% in 2024 to 53.7% by 2027, indicating a gradual decrease in profitability margins over the forecast period [11]