Digital China(SZ:000034) ZHONGTAI SECURITIES·2025-09-01 12:53Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved a revenue of 71.59 billion yuan in H1 2025, representing a year-on-year increase of 14.4%, while the net profit attributable to shareholders was 430 million yuan, down 16.3% year-on-year [7] - The IT distribution and value-added services business generated revenue of 68.39 billion yuan, up 14.3% year-on-year, with a net profit of 480 million yuan [7] - The microelectronics segment saw a revenue increase of 30.4% year-on-year, reaching 12.1 billion yuan, driven by a strong distribution network and strategic partnerships [7] - The company is transitioning from a traditional IT distributor to a brand supplier, focusing on cloud and intelligent computing opportunities, which are expected to become a second growth curve [7] Financial Performance Summary - For 2023A, the company reported a revenue of 119.624 billion yuan, with a growth rate of 3% year-on-year [5] - The projected revenue for 2024A is 128.166 billion yuan, with a growth rate of 7% year-on-year, and for 2025E, it is expected to reach 137.339 billion yuan [5] - The net profit attributable to shareholders for 2025E is projected to be 1.176 billion yuan, reflecting a significant recovery with a growth rate of 56% year-on-year [5] - The earnings per share (EPS) for 2025E is estimated at 1.63 yuan, with a projected P/E ratio of 17.4 [5] Business Segment Insights - The self-owned brand business achieved a revenue of 3.1 billion yuan in H1 2025, growing 16.6% year-on-year, with a net profit of 59.57 million yuan [7] - The AI-driven cloud services and software business reported revenue of 1.64 billion yuan, up 14.1% year-on-year, with a net profit of 35.37 million yuan [7] - The company has made significant strides in emerging fields such as smart warehousing and logistics, enhancing its growth potential [7]