DIGIWIN(SZ:300378) Guotai Junan Securities·2024-08-14 23:38Investment Rating - The report maintains a "Buy" rating for Dingjie Software with a target price of 29.07 CNY, reflecting confidence in the company's business model optimization and strong overseas growth [3][4]. Core Insights - The company's performance shows significant growth, with a 10.98% year-on-year increase in revenue to 1.004 billion CNY in the first half of 2024, and a 17.48% increase in net profit attributable to shareholders, reaching 42 million CNY [3]. - Dingjie Software's AIoT business has seen remarkable growth, with a revenue increase of 51.01% year-on-year, while the R&D design business also grew by 15.29% [3]. - The introduction of innovative business models and the empowerment of AIGC (Artificial Intelligence Generated Content) are expected to enhance the company's profitability [3]. Summary by Sections Financial Performance - In the first half of 2024, Dingjie Software achieved a revenue of 1.004 billion CNY, a 10.98% increase year-on-year, and a net profit of 42 million CNY, up 17.48% [3]. - The operating cash flow was negative at -203 million CNY, a decline of 121.98% year-on-year, primarily due to increased employee and operational costs [3]. Business Development - The company has over 40 years of experience in the manufacturing service industry and has accumulated knowledge from over 50,000 enterprise transformations, leading to a significant data value release [3]. - The revenue from AI applications, driven by ChatFile, increased by 179% compared to the same period in 2023 [3]. Overseas Expansion - Dingjie Software has been operating overseas for over a decade, expanding its distributor partnerships and tapping into the digitalization needs of Southeast Asia, where the market for SaaS products is growing rapidly [3]. - The overseas market currently accounts for over 50% of the company's demand, indicating strong customer loyalty and potential for future growth [3].