Digital China(SZ:000034) KAIYUAN SECURITIES·2025-03-31 02:08Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown rapid growth in gross profit and significant improvement in cash flow [5] - The forecast for net profit for 2025-2026 has been adjusted downwards due to the impact of the International Innovation Center (IIC), with new estimates of 1.444 billion and 1.730 billion yuan respectively [4] - The company is advancing its digital cloud integration and trusted innovation strategy, justifying the "Buy" rating [4] Financial Performance Summary - In 2024, the company achieved operating revenue of 128.166 billion yuan, a year-on-year increase of 7.14% [5] - The net profit attributable to the parent company was 753 million yuan, a decline of 35.77% year-on-year, while the non-recurring net profit was 1.015 billion yuan, down 19.68% [5] - The gross profit reached 5.397 billion yuan, up 14.03% year-on-year, with operating cash flow improving significantly to 2.505 billion yuan [5] Business Segment Performance - The self-owned brand product business saw strong growth, with revenue of 4.581 billion yuan, a year-on-year increase of 20.25% [6] - The gross margin for this segment rose to 11.49%, an increase of 2.65 percentage points [6] - The cloud service and software business generated revenue of 2.965 billion yuan, growing 18.75% year-on-year, with a gross margin of 20.32%, up 4.70 percentage points [7] Financial Projections - The projected operating revenues for 2025 and 2026 are 139.691 billion yuan and 155.029 billion yuan, respectively, with year-on-year growth rates of 9.0% and 11.0% [9] - The estimated net profit for 2025 is 1.444 billion yuan, reflecting a significant recovery of 91.9% year-on-year [9] - The earnings per share (EPS) are projected to be 2.03 yuan for 2025, 2.43 yuan for 2026, and 2.85 yuan for 2027 [4][9]