Group 1 - The recent strong performance of the Xinchuang sector in the capital market, with a 7% increase over five consecutive trading days, is driven by "policy support + performance growth" [1][5] - Companies like Sanwei Xinan and Dameng Data are highlighted for their significant performance growth, with Sanwei Xinan reporting a 15.19% year-on-year increase in revenue to 195 million yuan, despite a net loss of approximately 29.39 million yuan [3] - Dameng Data, a leading player in the domestic database sector, expects its revenue for the first half of 2025 to be between 495 million and 513 million yuan, reflecting a year-on-year growth of 40.63% to 45.74% [3][4] Group 2 - The report from Haitong International indicates that trends in distributed systems, AI, and cloud-native technologies are driving product upgrades, with significant growth in various sectors including government, energy, transportation, and finance [4] - Dameng Data's R&D in distributed databases is progressing well, with multiple successful case implementations and ongoing advancements in high concurrency processing and disaster recovery capabilities [4] - The Xinchuang sector's robust performance reflects optimistic market expectations for its future development, supported by both policy and market dynamics, which are expected to inject new vitality into economic growth and digital transformation [5]

Investment Rating - The report maintains an "Outperform" rating and adjusts the target price to RMB 290.30 [4][10]. Core Views - The company is expected to benefit from the localization of the database industry, with significant growth projected in revenue and net profit for 2024 and 2025 [4][10]. - The report highlights strong performance in the energy and transportation sectors, with notable increases in revenue and net profit in Q1 2025 [4][10]. - The company is focusing on technological innovation, particularly in distributed databases, AI, and cloud-native technologies, which are driving product upgrades [4][10]. Financial Summary - Revenue is projected to grow from RMB 794 million in 2023 to RMB 1,044 million in 2024, representing a year-on-year increase of 31.5% [3]. - Net profit attributable to shareholders is expected to rise from RMB 296 million in 2023 to RMB 362 million in 2024, a growth of 22.2% [3]. - The earnings per share (EPS) forecast for 2025 is RMB 4.32, with a projected price-to-sales (PS) ratio of 25x [4][10]. Business Performance - In 2024, the company's main business segments, including government, energy, transportation, and finance, are expected to see growth, particularly in energy and transportation [4][10]. - The operating cash flow for 2024 is anticipated to increase by 36.95% year-on-year, driven by higher sales returns and order growth [4][10]. - Revenue from software authorization is projected to grow by 22.79%, while maintenance services revenue is expected to increase by 38.50% [4][10]. Technological Development - The report notes successful R&D progress in distributed databases, with practical applications and further developments in high concurrency and multi-tenancy technologies [4][10]. - The company aims to enhance its database technology through AI and cloud-native innovations, focusing on integrated distributed architecture and multi-modal data fusion [4][10].