Digital China(SZ:000034) KAIYUAN SECURITIES·2024-10-31 14:43Investment Rating - The investment rating for the company is maintained as "Buy" [1] Core Views - The company is experiencing rapid improvement in profitability and strategic business development, particularly in the areas of digital cloud integration and domestic innovation [1] - The forecasted net profit for the company from 2024 to 2026 is projected to be 1.403 billion, 1.699 billion, and 2.135 billion yuan respectively, with corresponding EPS of 2.10, 2.54, and 3.19 yuan per share [1] Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 91.571 billion yuan, a year-on-year increase of 8.81%, and a net profit attributable to shareholders of 0.894 billion yuan, up 5.04% year-on-year [2] - The gross profit margin for the first three quarters was 4.49%, an increase of 0.55 percentage points year-on-year, with gross profit rising by 24% [2] - The company's self-branded product business saw strong growth, with revenue reaching 3.87 billion yuan, a year-on-year increase of 32%, and gross profit margin improving by 1.7 percentage points [3] - The digital cloud services and software business reported revenue of 2.07 billion yuan, a year-on-year increase of 47%, with gross profit margin rising by 6.3 percentage points [4] Financial Forecasts - The company's projected operating revenue for 2024 is 129.394 billion yuan, with a year-on-year growth of 8.2% [5] - The expected net profit for 2024 is 1.403 billion yuan, reflecting a year-on-year growth of 19.8% [5] - The gross profit margin is expected to remain stable at 4.0% in 2024, with a gradual increase to 4.5% by 2026 [5]