DCITS(SZ:000555) Guotou Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy - A" with a maintained rating [1] - The 6-month target price is set at 13.61 CNY, while the current stock price is 12.00 CNY as of March 29, 2024 [1] Core Insights - The company has shown rapid growth in its financial software and services business, achieving a revenue of 6.181 billion CNY in 2023, which represents a year-on-year increase of 10.58%. The financial software and services segment alone generated 3.639 billion CNY, marking a significant growth of 35.59% [4][16] - The company has a robust order backlog in its financial business, with a total signed but unfulfilled order amounting to 2.721 billion CNY as of December 31, 2023, reflecting an 8.58% year-on-year growth [4] - The company is actively exploring opportunities in the AIGC (Artificial Intelligence Generated Content) sector, launching low-code products such as CodeMaster and FinancialMaster, which are aimed at enhancing digital transformation in the banking industry [10] - The company is also focusing on quantum information technology, having established a subsidiary to develop quantum security solutions, which are crucial for secure information transmission in key sectors like finance and government [21][33] Financial Performance - The company reported a total revenue of 12.056 billion CNY for 2023, with a slight increase of 0.47% compared to the previous year [16] - The projected revenues for the upcoming years are as follows: 12.838 billion CNY in 2024, 13.701 billion CNY in 2025, and 14.594 billion CNY in 2026 [34] - The net profit for 2023 was 207.1 million CNY, showing a year-on-year growth of 0.30% [16] - The earnings per share (EPS) are expected to grow from 0.21 CNY in 2023 to 0.64 CNY by 2026 [34] Market Position and Strategy - The company has established strong partnerships with major tech firms like Tencent, Huawei, and Alibaba to enhance its financial infrastructure services [17] - The company is recognized for its comprehensive capabilities in providing domestic consulting and planning services across the financial sector, having served over 70 financial institutions [17] - The focus on high-margin financial software services is expected to support the company's long-term growth strategy in the financial technology sector [34]