鼎捷软件：利润稳步增长，AI商业化加速

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 19.11 [1][7]. Core Views - The company has shown steady profit growth with a revenue of RMB 1.004 billion in H1 2024, representing a year-over-year increase of 10.98%. The net profit attributable to the parent company reached RMB 42.44 million, up 17.48% year-over-year [1]. - The acceleration of AI commercialization is a key focus, with significant growth in AI-related revenues, particularly in Taiwan, where AI application revenue increased by 179% year-over-year [4]. - The company is actively promoting the integration of AI technology into its product offerings, particularly in the areas of R&D design and AIoT, leading to rapid revenue growth in these segments [2]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of RMB 1.004 billion, with a net profit of RMB 42.44 million, and a non-recurring net profit of RMB 40.48 million, marking increases of 10.98%, 17.48%, and 54.03% year-over-year respectively [1]. - Q2 2024 saw revenues of RMB 598 million, a year-over-year increase of 9.47% and a quarter-over-quarter increase of 47.34%, with net profit reaching RMB 52.14 million, up 11.53% year-over-year and 637.82% quarter-over-quarter [1]. Business Segments - The digital management business generated RMB 547 million in H1 2024, a slight increase of 0.2% year-over-year. The AIoT business saw a significant revenue increase of 51.0%, reaching RMB 265 million [2]. - The company is focusing on enhancing operational efficiency, with sales, management, and R&D expense ratios at 29.82%, 11.12%, and 9.54% respectively, showing improvements compared to the previous year [4]. Market Expansion - Revenue from mainland China reached RMB 455 million, up 7.4% year-over-year, while revenue from non-mainland regions was RMB 549 million, up 14.2% [3]. - The company is expanding its market presence in Southeast Asia, with a growth rate exceeding 100% in the distribution market in that region [3]. Future Projections - The company expects EPS for 2024, 2025, and 2026 to be RMB 0.64, RMB 0.80, and RMB 1.01 respectively, with a projected average PE ratio of 30x for 2024 [1][5].