DCITS(SZ:000555) Haitong Securities International·2025-09-09 11:37Investment Rating - The report maintains an "Outperform" rating for the company with a target price of 18.05 RMB, based on a price-to-sales (PS) valuation of 1.6x for 2025 [1][9]. Core Insights - The company reported stable revenue growth in the first half of 2025, with a total revenue of 4.42 billion RMB, representing a year-on-year increase of 7.98%. However, the net profit attributable to shareholders was a loss of 96 million RMB, which is a 25.93% increase in loss compared to the previous year [4][9]. - In Q2 2025, the company achieved a revenue of 2.26 billion RMB, down 2.76% year-on-year, but significantly reduced its net loss to 3 million RMB, an 82.88% improvement in loss compared to the same quarter last year [4][9]. - The financial software business showed resilient growth, with revenue of 1.64 billion RMB in H1 2025, up 3.21% year-on-year, and contract value increasing by 2.60% to 1.85 billion RMB [4][9]. - The company has successfully deepened cooperation with large bank clients, with revenue from state-owned and joint-stock banks growing by 26.28% and contract value by 36.06% in H1 2025 [4][9]. - The company is focusing on "AI + Finance" applications, having upgraded two strategic AI products: FinancialMaster and CodeMaster, which have been implemented in various banking projects [4][9]. Financial Summary - The company adjusted its net profit forecasts for 2025-2026 to 79 million RMB and 159 million RMB, respectively, and added a forecast for 2027 at 267 million RMB. The earnings per share (EPS) estimates for 2025-2027 are 0.08, 0.16, and 0.27 RMB [1][9]. - The financial summary indicates a total revenue forecast of 11.01 billion RMB for 2025, with a projected net profit of 79 million RMB, reflecting a significant recovery from previous losses [2][6].