DIGIWIN(SZ:300378) Southwest Securities·2024-08-15 10:00Investment Rating - The report assigns a "Buy" rating for Dingjie Software (300378) with a target price of 18.76 CNY over the next six months [1]. Core Views - Dingjie Software has demonstrated steady revenue growth, achieving 1 billion CNY in revenue for H1 2024, a year-on-year increase of 11.0%. The net profit attributable to shareholders reached 42.44 million CNY, up 17.5% year-on-year, while the net profit after deducting non-recurring items surged by 54.0% to 40.48 million CNY [1][17]. - The company is experiencing significant growth in its AIoT segment, with revenue increasing by 51.0% year-on-year, driven by its Athena industrial internet platform [1][12]. - Dingjie Software is actively expanding its market presence in Southeast Asia and has established subsidiaries in Thailand, Vietnam, and Malaysia, with revenue from non-mainland regions growing by 14.2% in H1 2024 [1][14]. Summary by Sections Financial Performance - For H1 2024, Dingjie Software reported revenue of 1 billion CNY, a growth of 11.0% year-on-year. The net profit attributable to shareholders was 42.44 million CNY, reflecting a 17.5% increase, while the net profit after non-recurring items was 40.48 million CNY, up 54.0% [1][17]. - The company forecasts revenue growth rates of 13.3%, 16.2%, and 16.4% for 2024, 2025, and 2026, respectively, with EPS projected at 0.67 CNY, 0.81 CNY, and 0.99 CNY for the same years [2][25]. Business Segments - R&D Design: Revenue reached 51.34 million CNY in H1 2024, up 15.3% year-on-year, with the launch of an AI-integrated PLM product [1][12]. - Digital Management: Generated 550 million CNY in revenue, a slight increase of 0.2% year-on-year, focusing on enhancing industry solution reuse [1][12]. - Production Control: Revenue was 130 million CNY, down 1.2% year-on-year, as the company upgraded its software architecture [1][12]. - AIoT: Revenue surged to 270 million CNY, marking a 51.0% increase year-on-year, driven by the expansion of OT device products and integrated applications [1][12]. Market Expansion - The company is capitalizing on the trend of Chinese enterprises going global, with H1 2024 revenue from non-mainland regions reaching 550 million CNY, a 14.2% increase. In mainland China, revenue was 450 million CNY, up 7.4% [1][14]. Technological Advancements - Dingjie Software is enhancing its Athena platform by integrating Microsoft Azure GPT and developing various AI applications, which have already been implemented in over 120 clients [1][12][13]. Investment Outlook - The company is expected to benefit from the recovery in downstream demand and its proactive embrace of AIGC technology, with a solid competitive advantage built over 40 years in the industry [1][23].