DIGIWIN(SZ:300378) Great Wall Securities·2024-08-13 06:35Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [7][14]. Core Insights - The company achieved a revenue of 1.004 billion yuan in H1 2024, representing a year-on-year growth of 10.98%. The net profit attributable to the parent company was 42 million yuan, up 17.48% year-on-year, while the non-recurring net profit increased by 54.03% [1][2]. - The company is positioned as a leading provider of digital transformation and smart manufacturing solutions in China, leveraging over 40 years of industry experience to offer comprehensive solutions for manufacturing and distribution sectors [2][5]. - The global trend towards industrial digital transformation is driving demand for industrial software, with China expected to continue increasing investments in this area, further boosting software demand [6]. Financial Summary - For H1 2024, the company reported a revenue of 1.004 billion yuan, with a year-on-year growth of 10.98%. The revenue from mainland China was 455 million yuan (up 7.37%), while revenue from non-mainland regions was 549 million yuan (up 14.16%) [2]. - The company forecasts revenues of 2.596 billion yuan, 3.065 billion yuan, and 3.680 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 187 million yuan, 228 million yuan, and 285 million yuan for the same years [7][9]. - The report highlights a significant decrease in operating cash flow, which fell by 121.98% year-on-year, primarily due to increased employee-related expenses [2][8]. Business Segmentation - The company’s R&D design business generated revenue of 51.34 million yuan, growing 15.29% year-on-year. The digital management segment saw revenue of 547 million yuan, a slight increase of 0.15% [5]. - The AIoT business experienced substantial growth, with revenue reaching 265 million yuan, up 51.01% year-on-year, driven by enhanced collaboration with channel partners and the promotion of integrated solutions [5]. Market Position - The company has established a strong market presence in the manufacturing ERP software sector, holding a market share of 14.8% among domestic vendors as of Q3 2021 [6][9]. - The company is actively expanding its international footprint, particularly in Southeast Asia, to support local manufacturing digitalization efforts by leveraging its experience from mainland China and Taiwan [5][6].