Market Performance - The Shanghai Composite Index increased by 0.34%, while the Shenzhen Component Index rose by 1.46% and the ChiNext Index surged by 1.96%, indicating a positive market trend with over 4,100 stocks rising across the market [1] Industry Performance - The leading sectors in terms of growth included Electric Power Equipment (2.04%), Communication (1.95%), and Computer (1.94%), while the sectors with the largest declines were Banking (-1.01%), Oil & Petrochemicals (-0.41%), and Coal (-0.35%) [2] - The rise in Electric Power Equipment is attributed to the surge in lithium carbonate futures and increased demand for energy storage cells, while the Communication sector benefits from accelerated infrastructure development as per the "14th Five-Year Plan" [3] - The Banking sector faced outflows as liquidity expectations shifted towards growth stocks due to increasing speculation on Federal Reserve interest rate cuts, while the Oil & Petrochemical sector struggled with declining WTI crude prices and supply-demand imbalances [3] Future Outlook - The A-share market is expected to exhibit a fluctuating upward trend, supported by ongoing policy measures favoring the capital market, gradual implementation of real estate and consumption-related policies, and a stable appreciation of the RMB against the USD [4]

Summary of Conference Call Notes Company and Industry Involved - The report focuses on **Softcom** and its collaboration with **Tongfang** in the hardware sector, particularly in computing and intelligent computing centers. Core Points and Arguments - **Total Hardware Revenue**: In 2024, the combined hardware revenue of Softcom and Zhitu International is projected to reach **12.9 billion** yuan, representing a year-on-year growth rate of over **30%** [1] - **PC Market Share Growth**: By the second half of 2024, Softcom's market share in the PC segment is expected to increase from **4%** to **10%**, positioning it just behind Lenovo and surpassing Huawei [1] - **Annual Shipment Volume**: The total shipment volume for the year is estimated to be around **3.3 million** units, reflecting a year-on-year increase of **90%** [1] - **Government and Political Acceleration**: The report anticipates an acceleration in government and political trust innovation in 2025, with Tongfang holding a significant market share. A concentrated bidding process is expected in March, with anticipated confirmations in the second half of 2025 [1] - **Profitability Outlook**: Following the expected profitability of Tongfang's C-end in 2024, there is an optimistic outlook for achieving breakeven in the 2G2B segment in 2025 [1] Other Important but Possibly Overlooked Content - The collaboration between Tongfang and Softcom is perceived to be undervalued by the market, indicating potential for future growth and investment opportunities [1]

Core Insights - The company reported a revenue of 372 million yuan for 2024, a year-on-year increase of 42.26%, while the net profit attributable to shareholders was -63 million yuan, an increase of 21.99% [1] - In Q1 2025, the company achieved a revenue of 81.33 million yuan, a year-on-year growth of 25.20%, with a net profit attributable to shareholders of -17.69 million yuan, meeting market expectations [1] - The revenue from the company's self-developed database products and services reached 140 million yuan in 2024, growing by 35%, with a gross margin of 74.11%, an increase of 11.64 percentage points [1][2] Product and R&D Developments - The company increased its R&D investment to 197 million yuan in 2024, a growth of 33.31%, leading to significant upgrades in database technology performance with the release of the Vastbase G100 V3.0 version [2] - The new product version features resource pooling and high availability deployment, significantly saving storage resources and supporting real-time consistency for read-only functions [2] - The integration of vector database capabilities for AI applications has improved recall rates and query per second (QPS) in high concurrency scenarios [2] Market Position and Client Base - The company has continued to secure high-quality clients across various key industries, including government, manufacturing, finance, telecommunications, energy, and transportation [2] - Notable clients include the Ministry of Agriculture and Rural Affairs, BYD, Shanghai Stock Exchange, and China Unicom, among others [2] - By the end of 2024, the company's Vastbase database products had achieved compatibility with over 1,100 partners and more than 1,700 products [2] Profit Forecast and Investment Rating - The company's business transformation has shown significant results, with notable revenue growth and improved gross margins in self-developed products and services [3] - The profit forecast for 2025-2026 has been adjusted from -24 million/-4 million yuan to 3 million/96 million yuan, with an expected net profit of 189 million yuan in 2027 [3] - The company is positioned to benefit from the increasing demand in the government and political sectors, maintaining a "buy" rating [3]