Core Viewpoint - Dingjie Smart achieved a net profit attributable to shareholders of 45.03 million yuan in the first half of the year, representing a year-on-year growth of 6.09%, indicating stable performance growth [1] Financial Performance - The overall gross profit margin of the company has steadily improved [1] - Revenue from R&D design services reached 57 million yuan, with a year-on-year increase of 11.05% [1] - Revenue from digital management services was 571 million yuan, showing a year-on-year growth of 4.32% [1] Product Development - The company launched the industry's first AI-integrated PLM product, which has been validated and iterated through multiple rounds, resulting in nearly 100 customer signings and successful deployments for dozens of clients, effectively enhancing the average transaction value [1] - The company released an enterprise intelligent agent generation suite that covers various aspects of multi-agent collaboration, reflection, and reasoning, transforming AI from a tool into a "digital employee" [1] Industry Position - The company is recognized as a leading provider of data and intelligent solutions, with significant growth potential in the future [1] - Given the growth potential of the industry and the company's ongoing business growth, a "buy" rating is maintained [1]

Core Viewpoint - Dingjie Smart achieved a net profit attributable to shareholders of 45.03 million yuan in the first half of the year, representing a year-on-year growth of 6.09%, indicating steady performance growth [1] Financial Performance - The overall gross profit margin of the company has steadily improved [1] - Revenue from R&D design services reached 57 million yuan, with a year-on-year increase of 11.05% [1] - Revenue from digital management services was 571 million yuan, showing a year-on-year growth of 4.32% [1] Product Development - The company launched the industry's first AI-integrated PLM (Product Lifecycle Management) system, which has signed nearly 100 clients and successfully deployed in dozens of cases, effectively increasing the average transaction value [1] - The company released an enterprise intelligent agent generation suite that covers multi-agent collaboration, reflection, reasoning, and other aspects, transforming AI from a tool attribute to a "digital employee" attribute [1] Industry Position - The company is recognized as a leading provider of data and intelligent solutions, with significant growth potential in the future [1] - Given the growth potential of the industry and the company's continuous business growth, a "buy" rating is maintained [1]

Core Viewpoint - The company reported a slight revenue growth in H1 2025, with a total revenue of 1.045 billion yuan, representing a year-on-year increase of 4.08%, while the net profit attributable to shareholders reached 45 million yuan, up 6.09% year-on-year [1] Revenue Analysis - Revenue growth was driven by slight increases in Taiwan and mainland China, with Southeast Asia and AI applications showing significant growth. H1 and Q2 revenue growth rates were 4% and 4%, respectively, aligning with expectations [2] - In H1 2025, revenue from mainland China and overseas reached 476 million yuan and 569 million yuan, respectively, with year-on-year growth of 4.61% and 3.65%. Notably, local revenue in Southeast Asia surged by 61% [2] - By product line, revenue for R&D design, enterprise management, production control, and AIoT in H1 2025 was 57 million yuan, 571 million yuan, 138 million yuan, and 274 million yuan, reflecting year-on-year growth of 11.1%, 4.3%, 7.4%, and 3.5%, respectively. AI application products experienced a remarkable year-on-year growth of 126% due to enhanced product matrix and customer penetration [2] Profit Analysis - The company managed to optimize expenses significantly, which helped mitigate the impact of credit impairment losses, resulting in stable profit margins. The year-on-year growth rates for net profit attributable to shareholders were 6% for H1 and 2% for Q2 [3] - The gross margin for Q2 2025 was 57.39%, showing a decline of 1.5 percentage points year-on-year and 2.3 percentage points quarter-on-quarter, while the overall gross margin for H1 was 58.32%, reflecting an increase of 0.88 percentage points year-on-year [3] - In Q2 2025, the sales, management, and R&D expense ratios were 25.09%, 9.49%, and 6.51%, respectively, with year-on-year decreases of 0.87 percentage points, 0.07 percentage points, and 2.67 percentage points, attributed to ongoing personnel control measures [3] AI Integration and Future Outlook - The company is fully embracing AI transformation, transitioning from "+AI" to "AI+". Since rebranding in 2024, the company has launched multiple AI software infrastructure suites, enhancing the integration of AI across its business [4] - The commercial aspect includes leveraging AI to increase product value, with AI-integrated PLM products boosting average transaction prices by approximately 30%. The AI business revenue grew by 126% year-on-year in H1 2025 [4] - The company is increasing its R&D investment in AI, planning to raise 838 million yuan for digital ecosystem empowerment projects, indicating strong potential for AI business growth [4] - Future profit projections for 2025-2027 estimate net profits of 197 million yuan, 242 million yuan, and 295 million yuan, with corresponding growth rates of 26%, 23%, and 22%, and PE ratios of 67.8x, 55.1x, and 45.2x [4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][6]. Core Insights - The company has demonstrated steady revenue growth, achieving an operating income of 1.045 billion yuan in the first half of 2025, a year-on-year increase of 4.08%. The net profit attributable to shareholders reached 45.03 million yuan, up 6.09% year-on-year [1][4]. - The AI business has seen significant growth, with revenue increasing by 125.91% year-on-year, reflecting successful implementation and customer acquisition strategies [3]. - The company is focusing on integrating AI technology into its products, enhancing operational efficiency and customer value [2][3]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a total revenue of 1.045 billion yuan, with a gross margin of 58.32%, an increase of approximately 0.88 percentage points year-on-year. The net cash flow from operating activities improved significantly, reaching -45.52 million yuan [1][4]. Business Segments - The R&D design segment generated 57 million yuan, growing by 11.05% year-on-year. The digital management segment achieved 571 million yuan, up 4.32%. The production control segment reported 138 million yuan, a 7.36% increase. The AIoT segment earned 274 million yuan, growing by 3.51% [2]. AI Business Development - The company launched an AI-powered PLM product, which has been adopted by nearly 100 clients, contributing to a significant increase in average transaction value. The multi-agent collaboration platform has been successfully implemented in various industries, establishing benchmark cases [3]. Profit Forecast and Valuation - The revenue forecasts for 2025-2027 have been adjusted to 2.536 billion, 2.794 billion, and 3.048 billion yuan, respectively. The net profit forecasts are set at 188.84 million, 236.92 million, and 274.51 million yuan, with corresponding EPS of 0.70, 0.87, and 1.01 yuan per share [4][7].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Viewpoints - The domestic AI Agent industry is currently transitioning from being easy to use to being truly effective, with rapid increases in AI penetration [2][10] - The company is actively embracing AI, having recently hosted an event to discuss its vision for the future of AI and digital transformation, and has been recognized as a leading AI enterprise [4][10] - The company is expected to achieve net profits of 197 million, 243 million, and 295 million yuan for the years 2025 to 2027, with corresponding growth rates of 26%, 23%, and 22% [10] Summary by Sections Company Overview - The company has made significant investments in AI, enhancing its product capabilities and accelerating the formation of a commercial closed loop [2][10] - The company has released multiple AI software infrastructure suites in 2025, integrating AI across its business operations [10] Market Position - The company has been recognized in various rankings, including being listed among the top 30 global AI+ enterprises and the top 20 decision-making AI companies in China [4][10] - The company is positioned to lead industry changes due to its accumulated industry know-how and customer base [10] Financial Projections - The company is projected to have total revenue of 2.58 billion, 2.91 billion, and 3.34 billion yuan from 2025 to 2027, with a gross profit margin of approximately 57% to 59% [13] - The earnings per share (EPS) are expected to increase from 0.72 yuan in 2025 to 1.09 yuan in 2027 [13]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][14] Core Views - The company is a leading provider of digital transformation and smart manufacturing solutions in China, expected to benefit from the recovery of the domestic manufacturing sector and opportunities abroad, with AI capabilities opening up growth potential [4][6] - The company maintains its profit forecast, projecting net profits for 2025-2027 to be 201 million, 240 million, and 289 million yuan, respectively, with corresponding EPS of 0.74, 0.88, and 1.07 yuan per share [4][9] - The current stock price corresponds to a PE ratio of 74.8, 62.9, and 52.1 for the years 2025, 2026, and 2027, respectively [4][9] Financial Summary - Revenue is projected to grow from 2,228 million yuan in 2023 to 3,581 million yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 16.6% [9][11] - The net profit is expected to increase from 150 million yuan in 2023 to 289 million yuan in 2027, with a significant year-on-year growth of 29.4% in 2025 [9][11] - The gross margin is forecasted to stabilize around 60% from 2025 onwards, while the net margin is expected to improve gradually from 7.0% in 2023 to 8.2% in 2027 [9][11] Product and Innovation - The company has launched several AI-enabled software solutions, including smart data suites and industrial software AI suites, showcasing its strong application capabilities in various operational scenarios [7][6] - The recent AI-themed event highlighted the company's commitment to enhancing productivity through data and intelligent technologies, addressing challenges in digital transformation for enterprises [5][6]

Group 1 - The core theme of the event was "AI Elevation: Steering the Intelligent Future," focusing on the integration of AI trends and practical applications in enterprises [1] - The new book titled "Intelligent Productivity: From Digital Transformation to Intelligent Rebirth" was launched, emphasizing deep reflections and practical experiences regarding the future of intelligence [1] - The chairman of the company, Ye Zizhen, stated that the value of AI lies not in replacing humans but in liberating them from repetitive tasks, aiming to create an "AI+" era rather than a "+AI" era [1] Group 2 - The company introduced the "SUPA" model, which innovatively describes the data application process, suggesting that data should perceive, understand, plan, and execute like humans [3] - Ye Zizhen presented a framework for AI development consisting of "one model, two cores, and three types of intelligent agents," which integrates the physical and digital worlds [3] - The "Athena platform" was highlighted as a practical embodiment of the company's vision, providing a "digital operating space" for enterprises to simulate operations based on data changes [4] Group 3 - The core value of AI agents was emphasized, including autonomous decision-making, dynamic adaptation, continuous learning, and multi-modal collaboration capabilities [5] - The company launched key products such as the intelligent data suite and enterprise intelligent agent generation suite to promote AI applications in enterprises [5] - Ye Zizhen expressed a vision for a "portable digital twin" for every individual, which would grow with training and provide tailored services to enterprises by integrating personal knowledge with enterprise data [5]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company is leading enterprises towards a digital-native transformation by upgrading its product thinking and driving software development through an "upgrade" paradigm, having initiated the "Smart+" strategy in 2015 and the Athena platform development in 2019 [2][3] - The company has developed a new driving force for digital intelligence, covering five major areas: R&D design, production manufacturing, quality control, business management, and after-sales service [2] - The AI suite includes a comprehensive data management stack, enterprise AI generation suite, integration of AI into ERP, PLM, MES, and WMS systems, and an AIoT command center, showcasing the company's capabilities in digital transformation [3] Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 2.658 billion, 3.051 billion, and 3.576 billion respectively, with year-on-year growth rates of 14.0%, 14.8%, and 17.2% [4][6] - Earnings per share (EPS) are projected to be 0.73, 0.91, and 1.14 for the years 2025, 2026, and 2027 respectively [4][6] - The price-to-earnings (PE) ratios corresponding to the closing price on June 27 are 48.87, 39.07, and 31.40 for the years 2025, 2026, and 2027 respectively [4][6]

Core Insights - The article discusses the rise of Industrial AI as a significant revolution in the manufacturing sector, contrasting it with the more visible generative AI trends in content creation and software [1] - It highlights the challenge of transferring tacit knowledge from experienced workers to digital systems, emphasizing the need for a system that can effectively bridge the gap between operational technology and information technology [1][2] Group 1: Industrial AI Development - Industrial AI is seen as a solution to the challenge of integrating the tacit knowledge of experienced workers into digital systems, which is crucial for the future of Chinese manufacturing [1] - Dingjie Zhizhi has launched a series of enterprise-level AI suites aimed at connecting the "arterial" and "venous" knowledge within manufacturing [1][2] Group 2: Challenges in AI Adoption - Many manufacturing companies face a dilemma between the risks of falling behind in AI adoption and the potential pitfalls of investing in technology without a clear strategic purpose [4] - The need for a "thinking system" rather than just a technical system is emphasized, advocating for a decoupled architecture that separates knowledge from action [4] Group 3: Product Matrix and Features - Dingjie has developed a "three-layer rocket" product matrix to integrate the experience of skilled workers with large model reasoning [5] - The first layer, the Intelligent Data Suite, aims to conduct a comprehensive "data CT" for factories, addressing the issue of data silos between operational and management data [6][7] Group 4: Intelligent Collaboration - The second layer involves the creation of a self-developed MACP protocol that enables digital employees to collaborate effectively, enhancing decision-making processes across departments [8][10] - This collaboration allows for complex decision-making tasks to be executed efficiently by multiple AI agents working together [10] Group 5: AIoT Command Center - The third layer includes an AIoT command center that connects various production and facility devices, facilitating a comprehensive AI-driven operational environment [11][12] - The Industrial Mechanism AI aims to understand the underlying physical processes in manufacturing, transforming tacit knowledge into actionable insights [12][13] Group 6: Knowledge Digitalization - Dingjie’s system addresses the aging workforce in manufacturing by digitizing tacit knowledge, capturing it in a structured format that AI can understand [14] - The approach includes multi-modal data capture during demonstrations to lower the barrier for knowledge entry into the system [14] Group 7: Real-World Applications - Case studies from Jia Li Co. and Ying Fei Te illustrate the practical applications of Dingjie’s AI solutions, showcasing significant improvements in productivity and efficiency [17][19][23] - Jia Li Co. achieved a 20% increase in per capita output and a 15% reduction in energy consumption through AI-driven transformations [19] Group 8: Business Model Evolution - The article discusses a shift from traditional project-based revenue models to subscription-based models in industrial software, driven by AI capabilities [24][25] - This evolution allows for a more flexible adoption of AI technologies, reducing the initial capital investment required from companies [25] Group 9: Future of Industrial AI - The competitive landscape is shifting towards the ability to translate complex industry knowledge into AI-understandable formats, which will be crucial for success in the industrial AI space [28] - The article concludes with the notion that the future of industrial AI will depend on trust in algorithms, continuous knowledge acquisition, and the ability to foster a thriving ecosystem of third-party developers [28][29]

Investment Rating - The investment rating for Dingjie Smart is maintained at "Buy-A" with a 12-month target price of 44.50 CNY, compared to the current stock price of 32.64 CNY [4]. Core Insights - Dingjie Smart held the 2025 Smart Future Summit, showcasing its advancements in AI and big data, emphasizing the integration of AI into business operations to enhance productivity and competitiveness [1][2]. - The company introduced two major AI suites, the Smart Data Suite and the Enterprise Intelligent Agent Generation Suite, which form the Athena platform's foundational infrastructure for AI applications [2]. - Dingjie Smart aims to integrate AI capabilities into four major industrial software systems (ERP, PLM, MES, WMS), promoting automation and intelligent decision-making within enterprises [3][7]. Financial Projections - The projected revenues for Dingjie Smart from 2025 to 2027 are 25.89 billion CNY, 29.03 billion CNY, and 33.09 billion CNY, respectively, with net profits expected to be 2.01 billion CNY, 2.49 billion CNY, and 2.94 billion CNY [9]. - The company anticipates a net profit margin increase from 6.7% in 2023 to 8.9% by 2027, indicating improved profitability [11][12]. Market Performance - The stock has shown a relative return of -5.7% over the past month and an absolute return of -6.3%, but a significant increase of 85.2% over the past year [5].