DIGIWIN SOFTWARE(300378)2024-11-12 09:03Investment Rating - The investment rating for the company is "Buy" and is maintained [1][7]. Core Insights - The company has achieved steady revenue growth, capitalizing on opportunities for Chinese enterprises going global [3][4]. - In the first three quarters of 2024, the company reported revenue of 1.573 billion yuan, a year-on-year increase of 11.21%, and a net profit attributable to shareholders of 50 million yuan, up 2.15% year-on-year [4]. - The company has significantly improved its cost control, with a decrease in sales expense ratio by 2.41 percentage points compared to the same period last year [4]. - The AI business has seen rapid growth, with revenue from AI-related services increasing by 102.08% year-on-year [5]. - The company is focusing on enhancing its R&D capabilities, particularly in AI technologies, which has led to substantial revenue growth in this segment [5]. Financial Performance - The company’s revenue for the third quarter was 569 million yuan, reflecting a year-on-year growth of 11.63% [4]. - The revenue forecast for 2024-2026 has been adjusted to 2.502 billion, 2.855 billion, and 3.206 billion yuan respectively, with net profit forecasts of 170 million, 207 million, and 244 million yuan [7][11]. - The earnings per share (EPS) are projected to be 0.63, 0.76, and 0.90 yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (P/E) ratios of 42.05, 34.53, and 29.20 [7][11]. Market Opportunities - The company has seen a recovery in its business in mainland China, with revenue of 735 million yuan in the first three quarters, a year-on-year increase of 11.33% [6]. - In Southeast Asia, the company has leveraged partnerships with major domestic enterprises to enhance market promotion and capture the trend of Chinese companies expanding overseas [6]. - The company has signed new contracts in Taiwan, particularly in high-demand sectors such as electronics and automotive parts, with a year-on-year growth of 32% in new customer contracts [6].