Digital China(SZ:000034) Tai Ping Yang·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price based on the last closing price of 29.52 [1][4]. Core Insights - The company achieved a revenue of 119.62 billion yuan in 2023, representing a year-on-year growth of 3.23%, while the net profit attributable to shareholders was 1.17 billion yuan, up 16.66% year-on-year [3][4]. - The strategic business revenue continues to increase, with significant growth in cloud computing and digital transformation, which generated 6.93 billion yuan, a year-on-year increase of 37.98% [3][4]. - The company has made substantial advancements in domestic computing power, focusing on the "Kunpeng + Ascend" ecosystem, and has launched new AI server products tailored for various applications [3][4]. Financial Performance Summary - Revenue projections for 2024-2026 are estimated at 125.94 billion yuan, 132.82 billion yuan, and 140.37 billion yuan, respectively [4][5]. - The net profit attributable to shareholders is projected to be 1.40 billion yuan, 1.69 billion yuan, and 1.94 billion yuan for the same period [4][5]. - The earnings per share (EPS) are expected to be 2.10 yuan, 2.52 yuan, and 2.90 yuan for 2024, 2025, and 2026, respectively [4][5].