Core Viewpoint - The company reported a revenue of 6.452 billion yuan in 2024, representing a year-over-year increase of 8.22%, with a net profit of 1.428 billion yuan, up 60.92% year-over-year, indicating strong financial performance despite a decline in Q1 2025 [1] Group 1: Game Business - The gaming segment achieved a revenue of 4.662 billion yuan in 2024, with a year-over-year growth of 3.66% and a gross margin of 72.70%, reflecting a 1.56 percentage point increase [2] - The net profit from gaming was 1.552 billion yuan, up 40.47% year-over-year, with a net profit margin of 33.28%, an increase of 8.72 percentage points [2] - The company expects a natural decline in revenue from existing products in Q1 2025, leading to an overall revenue decrease of 11.07% year-over-year [2][3] Group 2: Future Outlook - The company plans to maintain long-term operations for existing games, with expectations for stable revenue from key titles like "Age of Origins" and "War and Order" [3] - New games "Stellar Sanctuary" and "Next Agers" are set to launch in overseas markets by the end of 2024, with plans for large-scale promotion in mid to late 2025 [3] - The company has additional RPG and SLG games in the pipeline, which are anticipated to contribute to revenue growth [3] Group 3: Computer Business - The computer and other businesses generated revenue of 1.790 billion yuan in 2024, marking a year-over-year increase of 22.21% [4] - AI/ICT operations accounted for 1.478 billion yuan, growing 20.53% year-over-year, while IoT/communications revenue reached 133 million yuan, up 62.30% [4] - The company is focusing on integrating AI across various business lines, enhancing profitability and growth potential [4] Group 4: Profit Forecast and Investment Rating - The company has adjusted its earnings per share (EPS) forecasts for 2025-2027 to 0.59, 0.64, and 0.69 yuan, respectively, reflecting a downward revision from previous estimates [5] - The current price-to-earnings (PE) ratios are projected at 19, 18, and 17 times for 2025-2027 [5] - The company maintains a "buy" rating, supported by strong computer business growth and a robust pipeline of new games [5]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 93.66 [8][5]. Core Views - The company has benefited significantly from the trend of edge AI, with a focus on deepening its layout in the edge intelligence sector [1]. - The launch of the AI-native vehicle operating system, Drip OS 1.0 Evo, positions the company well in the smart automotive space, leveraging AI large model technology for autonomous decision-making [2]. - The company is expanding its presence in various AI-related fields, including AI glasses, AIPC, robotics, and AI IoT smart hardware, which are expected to contribute to its growth [3]. Financial Performance - In Q1 2025, the company reported revenue of RMB 1.469 billion, a year-over-year increase of 24.69%, but a quarter-over-quarter decrease of 13.10%. The net profit attributable to the parent company was RMB 92.57 million, up 2.00% year-over-year but down 63.77% quarter-over-quarter [1]. - The overall gross margin for Q1 2025 was 36.28%, a decrease of 3.54 percentage points year-over-year, influenced by fluctuations in downstream demand and longer acceptance cycles from automotive manufacturers [4]. - The company’s EPS forecasts for 2025, 2026, and 2027 are RMB 1.40, RMB 1.91, and RMB 2.58, respectively [5]. Growth Potential - The company is expected to see a rebound in revenue growth in its smart automotive business as central computing architectures become more prevalent and large models are integrated into vehicles [2]. - The TurboX AI glasses solution is anticipated to achieve mass production by the end of 2025, enhancing the company's product offerings in the AI hardware space [3]. - The company’s strategic cost control measures have led to a decrease in sales, management, and R&D expense ratios, which may strengthen its competitive position and profitability as market conditions improve [4].

Investment Rating - The investment rating for the company is "Buy" with a target price of 50.40 RMB [8][9]. Core Views - The company has successfully commercialized its AI applications, leading to an expected acceleration in performance in 2025, despite a slight underperformance in 2024 due to delayed demand from downstream clients [1][2]. - The company is leveraging AI technology to enhance internal operational efficiency, resulting in significant reductions in sales, management, and R&D expense ratios [2]. - The company is capitalizing on the trend of Chinese enterprises expanding into Southeast Asia, with notable revenue growth from non-mainland regions, particularly Taiwan and Southeast Asia [3]. - The company's AI business indicators for Q1 2025 show continued improvement, with expectations that AI will drive future growth [4]. - Revenue forecasts have been adjusted downwards due to traditional business pressures, but earnings per share (EPS) estimates have been raised due to significant improvements in operational efficiency [5]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 2.331 billion RMB (up 4.62% YoY) and a net profit of 156 million RMB (up 3.59% YoY) [1][7]. - The company expects revenues of 2.719 billion RMB, 3.206 billion RMB, and 3.816 billion RMB for 2025, 2026, and 2027 respectively, with growth rates of 16.64%, 17.92%, and 19.05% [5][7]. AI Business Development - The company reported revenue from self-developed smart software products and integrated smart hardware solutions of 662 million RMB and 555 million RMB respectively in 2024, with growth rates of 13.57% and 12.64% [2]. - The AI business in Taiwan saw a remarkable growth of 135.07% YoY [2]. Market Expansion - Revenue from the mainland China region was 1.177 billion RMB (up 1.92% YoY), while revenue from non-mainland regions was 1.154 billion RMB (up 7.53% YoY), driven by growth in Taiwan and Southeast Asia [3]. - The company is expanding its local teams in Thailand, Vietnam, and Malaysia, achieving a localization rate of over 90% [3]. Profitability and Valuation - The company’s EPS is projected to be 0.84 RMB, 1.18 RMB, and 1.65 RMB for 2025, 2026, and 2027 respectively, reflecting an increase in profitability [5][7]. - The target price of 50.40 RMB is based on a 60x PE ratio for 2025, compared to an average of 58.0x PE for comparable companies [5][13].

Investment Rating - The investment rating for the company is "Buy" with a target price of 50.40 RMB [8][9]. Core Views - The company has successfully commercialized AI applications, leading to an expected acceleration in performance in 2025 [1][2]. - The company is leveraging AI technology to enhance internal operational efficiency, resulting in a significant reduction in expense ratios [2]. - The company is capitalizing on the trend of Chinese enterprises expanding into Southeast Asia, with promising results in overseas market development [3]. - The AI business indicators for Q1 2025 show continued improvement, indicating a broad growth potential for the future [4]. - Revenue forecasts have been adjusted downwards due to traditional business pressures, but earnings per share (EPS) estimates have been raised due to significant improvements in operational efficiency [5]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 2.331 billion RMB (up 4.62% YoY) and a net profit of 156 million RMB (up 3.59% YoY) [1][7]. - The company expects revenues of 2.719 billion RMB, 3.206 billion RMB, and 3.816 billion RMB for 2025, 2026, and 2027 respectively, with growth rates of 16.64%, 17.92%, and 19.05% [5][7]. AI Business Development - The company reported revenue from self-developed smart software products and integrated solutions of 662 million RMB and 555 million RMB respectively in 2024, with growth rates of 13.57% and 12.64% YoY [2]. - The AI business in Taiwan saw a remarkable growth of 135.07% YoY [2]. Overseas Market Expansion - Revenue from non-mainland China regions reached 1.154 billion RMB in 2024, growing by 7.53% YoY, driven by markets in Taiwan and Southeast Asia [3]. - The company has established strategic partnerships to enhance services for Chinese enterprises venturing abroad, focusing on key industries such as automotive and electronics [3]. Profitability and Valuation - The company’s EPS is projected to be 0.84 RMB, 1.18 RMB, and 1.65 RMB for 2025, 2026, and 2027 respectively, reflecting an increase in profitability [5][7]. - The target price of 50.40 RMB is based on a 60x PE ratio for 2025, considering the company's product and industry advantages [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 16.00 RMB [8][9]. Core Views - The company's revenue for 2024 was 529.28 million RMB, a year-over-year decrease of 5.71%, while the net profit attributable to the parent company was 36.81 million RMB, a slight decrease of 0.42%. However, the non-recurring net profit increased significantly by 233.45% to 15.69 million RMB, indicating a shift towards higher-margin business segments [1][2]. - The company is expected to recover its performance in 2025, driven by the expansion into new industry clients such as judiciary, telecommunications, and tobacco, as well as overseas clients along the Belt and Road Initiative [1][3]. Summary by Sections Financial Performance - In 2024, the company's revenue from PKI infrastructure products, PKI security application products, and general security products was 1.58 billion RMB, 2.48 billion RMB, and 1.23 billion RMB respectively, showing year-over-year growth of 41.41%, 10.64%, and a decline of 45.28% [2]. - The overall gross margin improved by 4.52 percentage points to 51.99% due to the increased revenue share from high-margin businesses [2]. Business Opportunities - The company is focusing on new security scenarios such as quantum security and AI security, and has made significant progress in product development [3]. - New industry clients are expected to contribute to sustained growth in 2025, with successful projects like the digital trust system in Algeria indicating potential for international expansion [3]. Earnings Forecast and Valuation - The revenue projections for 2025, 2026, and 2027 are 642.05 million RMB, 774.72 million RMB, and 919.08 million RMB respectively, with corresponding EPS estimates of 0.37 RMB, 0.54 RMB, and 0.74 RMB [5][7]. - The report adjusts the revenue and profit forecasts downward due to the transition period affecting low-margin businesses, but maintains a target price based on a 43.3x PE ratio for 2025 [5].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 17.18 RMB [8][9]. Core Insights - The company reported Q1 2025 revenue of 215 million RMB, a year-on-year increase of 10.86%, but a net loss attributable to the parent company of 126 million RMB, compared to a loss of 34 million RMB in the same period last year. The increased loss is primarily due to a 140 million RMB investment income recorded in the previous year. Excluding this investment income, the adjusted net loss was 128 million RMB, an improvement from a loss of 161 million RMB in the previous year, attributed to revenue growth and enhanced cost control [1]. - The company's gross margin for Q1 2025 was 35.20%, a decrease of 6.04 percentage points year-on-year. The sales, management, and R&D expense ratios were 35.99%, 35.00%, and 43.71%, respectively, showing significant improvements in expense management [2]. - The implementation of the "Artificial Intelligence Generated Content Identification Measures" in September 2025 is expected to drive demand for AI content verification, benefiting the company significantly as it has been involved in drafting related standards [3]. - The company has launched an integrated model machine for public safety, combining its electronic evidence collection products with AI capabilities, enhancing its competitive edge in the market [4]. - Revenue forecasts for 2025-2027 are projected at 1.969 billion RMB, 2.193 billion RMB, and 2.447 billion RMB, respectively, with a target price based on a 7.5x PS ratio for 2025 [5]. Summary by Sections Financial Performance - Q1 2025 revenue: 215 million RMB, up 10.86% YoY - Net loss: 126 million RMB, compared to 34 million RMB loss last year - Adjusted net loss: 128 million RMB, improved from 161 million RMB [1] Expense Management - Q1 2025 gross margin: 35.20%, down 6.04 percentage points YoY - Expense ratios: Sales 35.99%, Management 35.00%, R&D 43.71%, all showing improvement [2] Regulatory Environment - New AI content identification measures expected to increase demand for the company's services starting September 2025 [3] Product Development - Launch of integrated AI model machine for public safety, enhancing product offerings [4] Revenue Forecast - Projected revenues for 2025-2027: 1.969 billion RMB, 2.193 billion RMB, 2.447 billion RMB [5]

Investment Rating - The investment rating for the company is "Buy" [1][2] Core Views - The company has demonstrated strong revenue growth across multiple downstream industries, with a notable increase in revenue from the coal industry by 63.61% year-on-year [1] - The company is focusing on enhancing its research and development efforts, particularly in the field of predictive maintenance through AI technologies [1] - Strategic initiatives, including partnership strategies and service productization, are expected to drive high-quality growth for the company [1] Financial Performance Summary - In 2025, the company achieved revenue of 584 million, a year-on-year increase of 17.21%, and a net profit attributable to shareholders of 108 million, up 71.49% [1][3] - The gross profit margin for the company was 63.62%, an increase of 1.49 percentage points year-on-year [1] - The company’s revenue from the power industry reached 229 million in 2024, a 17.92% increase, while the revenue from the coal industry was 80 million, reflecting a 63.61% increase [1] - The company’s R&D expense ratio was 18.36% in 2024, indicating a strong commitment to innovation [1] Earnings Forecast - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.74, 2.31, and 3.06 respectively, with corresponding price-to-earnings (P/E) ratios of 30.34, 22.87, and 17.23 [2][3]

Investment Rating - The investment rating for the company is "Buy" [1][2] Core Views - The company has demonstrated strong revenue growth across multiple downstream industries, with a notable increase in revenue from the coal industry by 63.61% year-on-year [1] - The company is focusing on enhancing its research and development efforts, particularly in the field of predictive maintenance through AI technologies [1] - Strategic initiatives, including partnership strategies and service productization, are expected to drive high-quality growth for the company [1] Financial Performance Summary - In 2025, the company achieved revenue of 584 million yuan, a year-on-year increase of 17.21%, and a net profit attributable to shareholders of 108 million yuan, up 71.49% [1][3] - The gross profit margin for the company was 63.62%, an increase of 1.49 percentage points year-on-year [1] - The company’s revenue from the power industry reached 229 million yuan in 2024, a 17.92% increase year-on-year, while the revenue from the coal industry was 80 million yuan, reflecting a 63.61% increase [1][3] Earnings Forecast - The company is projected to have earnings per share (EPS) of 1.74, 2.31, and 3.06 yuan for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 30.34, 22.87, and 17.23 [2][3]

Core Viewpoint - Digital China Group Co., Ltd. reported a revenue of 31.78 billion yuan for Q1 2025, marking an 8.6% year-on-year increase, with a net profit of 224 million yuan, up 10.4% [1] Group 1: Financial Performance - Overall revenue reached 31.78 billion yuan, reflecting an 8.6% year-on-year growth [1] - Non-GAAP net profit was 224 million yuan, showing a 10.4% increase compared to the previous year [1] - Operating cash flow recorded a net inflow of 2.73 billion yuan [1] Group 2: AI Strategy and Implementation - The company focused on AI technology transformation, enhancing its digital technology stack and launching multiple AI projects [1] - New direct customer opportunities increased by 78% year-on-year, with significant growth in flagship AI projects [1] - The company successfully implemented AI solutions in various industries, including retail, automotive, and manufacturing [1] Group 3: R&D and Product Development - R&D expenses grew by 9.3% year-on-year, emphasizing the commitment to generative AI and AI accessibility [2] - The launch of the DeepSeek version of the KunTai integrated machine and the KunTaiCube toolbox supports private deployment and offers cost-effective smart upgrade solutions [2] - The company secured an 800 million yuan order for its self-branded products from China Telecom for the 2024-2025 procurement project [2] Group 4: Automotive Industry Focus - Digital China introduced the "AI for Process Maturity Model" to outline the AI evolution blueprint for the automotive industry [2] - The company launched an "end-to-end one-stop AI workspace" and the "Digital China Intelligent Vehicle Solution" to enhance productivity and reduce costs for automotive enterprises [2] - Multiple "ten million-level" orders were won for digital marketing and data compliance projects from leading automotive companies [2]

| 华泰研究 | | | 年报点评 | | --- | --- | --- | --- | | 2025 年 | 4 月 | 22 日│中国内地 | 计算机应用 | 当虹科技 2024 年实现营收 3.07 亿元（yoy-7.82%），归母净利-1.02 亿元 （yoy+26.05%），扣非净利-1.08 亿元（yoy+22.94%）。其中 Q4 实现营收 1.38 亿元（yoy+15.97%），归母净利-3274.34 万元（yoy+22.10%）。公司 业绩低于我们此前预期（收入/归母净利预期为 3.49/-0.34 亿元），主要由于 传媒文化业务进展逊于预期。我们认为，伴随 AI 需求释放，25 年公司传媒 文化业务的下游客户预算有望加速修复，同时看好工业与卫星、智能网联汽 两大板块的业务增长潜力，维持"买入"评级。 24 年亏损同比收窄，预计 25 年有望扭亏为盈 公司 2024 年归母净利亏损 1.02 亿元，同比收窄 26.05%，亏损收窄主要受 益于工业与卫星业务、智能网联汽车业务两大高附加值板块的加速成长，带 动公司整体毛利率同比提升 5.74pct 至 41%。2024 年公司销售/管理/研 ...