Core Insights - The company, Dingjie Shuzhi, reported a total revenue of 2.331 billion yuan for 2024, marking a year-on-year growth of 4.62%, and a net profit attributable to shareholders of 156 million yuan, up 3.59% [1] - The company has undergone a brand transformation from "Dingjie Software" to "Dingjie Shuzhi," adjusting its business strategy to focus on data and intelligent technology for innovative productivity [1] Revenue Breakdown - In 2024, the company achieved revenue of 1.177 billion yuan in mainland China and 1.154 billion yuan in non-mainland regions, with a growth rate of 7.53% in the latter [2] - The company holds a 14.8% market share in the manufacturing ERP sector in mainland China, ranking first among local vendors [2] Business Segments - The company covers four major categories of industrial software: R&D design, digital management, production control, and AIoT, providing comprehensive services [3] - The R&D design segment generated 152 million yuan in revenue for 2024, growing by 23.33%, while the AIoT segment achieved 631 million yuan, up 22.04% [3] Technological Advancements - The Athena platform integrates AI, big data, and knowledge graph technologies, offering a PaaS solution with low-code and multi-end collaboration capabilities [4] - The company is collaborating with leading cloud service providers to enhance its AI capabilities, integrating various advanced AI models into its offerings [4] Market Potential - The global AI Agent market is projected to grow from $5.29 billion in 2024 to $216.8 billion by 2035, with a compound annual growth rate of 40.15% [5] - The company is launching an AI Agent development platform and enhancing its AI applications to meet diverse deployment needs [5] Financial Projections - Revenue forecasts for the company are 2.589 billion yuan in 2025, 2.903 billion yuan in 2026, and 3.309 billion yuan in 2027, with net profits of 201 million yuan, 249 million yuan, and 294 million yuan respectively [6]

Investment Rating - The investment rating for the company is maintained at Buy-A with a target price of 44.50 CNY, reflecting a dynamic price-to-earnings ratio of 60 times for 2025 [5][9]. Core Insights - The company has achieved steady growth in revenue and net profit despite undergoing a brand transformation and strategic adjustment, shifting from "Dingjie Software" to "Dingjie Smart" [2][9]. - In 2024, the company reported total revenue of 2.331 billion CNY, a year-on-year increase of 4.62%, and a net profit of 156 million CNY, up 3.59% year-on-year [1][9]. - The company is positioned as a leader in the industrial software sector, particularly in the manufacturing ERP market, holding a 14.8% market share among domestic vendors [2][9]. Revenue and Profitability - The company’s revenue for Q1 2025 was 423 million CNY, reflecting a 4.33% year-on-year growth, while the net profit was -8.33 million CNY, showing a 14.04% increase year-on-year [1]. - The projected revenues for 2025, 2026, and 2027 are 2.589 billion CNY, 2.903 billion CNY, and 3.309 billion CNY respectively, with net profits expected to be 201 million CNY, 249 million CNY, and 294 million CNY [9][11]. Business Segments - The company has diversified its offerings across four major categories of industrial software: R&D design, digital management, production control, and AIoT, with significant revenue growth in each segment [3][4]. - The R&D design segment generated 152 million CNY in revenue in 2024, a 23.33% increase, while the AIoT segment achieved 631 million CNY, growing by 22.04% [3]. Technological Advancements - The Athena platform and AI Agent products are pivotal in expanding the company's growth potential, integrating advanced technologies such as AI, big data, and knowledge graphs [4][8]. - The global AI Agent market is projected to grow from 5.29 billion USD in 2024 to 216.8 billion USD by 2035, with a compound annual growth rate of 40.15% [8]. Market Position - The company has a strong presence in the Taiwan region, serving 77% of publicly listed enterprises, and has accumulated extensive international experience by servicing approximately 800 clients in Southeast Asia [2][9]. - In the Chinese mainland, the company ranks first among domestic vendors in the PLM market and holds a top-three position in MES products across various high-tech industries [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][16] Core Views - The company is a leading provider of digital transformation and smart manufacturing integration planning services in China, expected to benefit from downstream economic recovery and overseas opportunities. The acceleration of AI commercialization is anticipated to open new growth avenues [4][6][7] - The company has slightly adjusted its profit forecasts for 2025-2026 and added a new forecast for 2027, estimating net profits of 201 million, 240 million, and 289 million yuan for 2025-2027, respectively [4][9] Financial Performance - In 2024, the company achieved operating revenue of 2.331 billion yuan, a year-on-year increase of 4.62%, and a net profit attributable to the parent company of 156 million yuan, up 3.59% year-on-year [5][9] - For Q1 2025, the company reported operating revenue of 423 million yuan, a year-on-year increase of 4.33%, with a net profit attributable to the parent company of -8.33 million yuan, reflecting a 14.04% year-on-year growth [5][9] AI Integration and Growth - The company has integrated AI capabilities with its business scenarios, leading to a 135.07% year-on-year growth in AI business revenue in Taiwan in 2024. The introduction of AI technology in its PLM product has resulted in a 30% increase in average transaction value for R&D and design services [6][7] - The company has seen a 57.54% year-on-year increase in net profit in Taiwan for 2024, and a narrowing of non-GAAP net profit loss by 31.92% in Q1 2025 [6][7] Regional Performance - In Q1 2025, the company reported operating revenue of 175 million yuan in mainland China, a year-on-year increase of 6.46%, supported by the expansion of industry solutions [7] - The company has enhanced its localized service capabilities in Southeast Asia, achieving a 33% year-on-year increase in signed contracts [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4][13]. Core Views - The company is a leading provider of digital transformation and smart manufacturing integration planning services in China, expected to benefit from downstream economic recovery and overseas opportunities. The acceleration of AI commercialization is anticipated to open up growth space for the company [4][6]. - The company has slightly adjusted its profit forecasts for 2025-2026 and added a new forecast for 2027, expecting net profits of 201 million, 240 million, and 289 million yuan for 2025-2027, respectively [4][6]. Financial Performance Summary - In 2024, the company achieved operating revenue of 2.331 billion yuan, a year-on-year increase of 4.62%, and a net profit attributable to shareholders of 156 million yuan, up 3.59% year-on-year. The first quarter of 2025 saw operating revenue of 423 million yuan, a 4.33% increase year-on-year, with a net profit loss of 8.33 million yuan, but a 14.04% increase year-on-year in the same quarter [5][8]. - The company's revenue is projected to grow from 2.331 billion yuan in 2024 to 3.581 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 16.6% [8][10]. AI Integration and Growth - The company has integrated AI capabilities with its business scenarios, leading to a 135.07% year-on-year increase in AI business revenue in Taiwan in 2024. The introduction of AI technology in its PLM product has resulted in a 30% increase in average transaction value for R&D and design services [6][7]. - The company reported a 57.54% year-on-year increase in net profit in Taiwan in 2024, indicating the effectiveness of AI in enhancing operational efficiency [6][7]. Regional Performance - In the first quarter of 2025, the company achieved operating revenue of 175 million yuan in mainland China, a 6.46% year-on-year increase, while Taiwan's AI applications and integration solutions continued to deepen, leading to a nearly 10% year-on-year increase in new customer signings [7][8]. - The Southeast Asia region saw a 33% year-on-year increase in signed contracts, reflecting the company's enhanced localization service capabilities [7].

Core Viewpoint - Dingjie Smart reported its first annual report since its name change, showing a total revenue of 2.331 billion yuan in 2024, a year-on-year increase of 4.62% [2] Financial Performance - In 2024, Dingjie Smart achieved a total profit of 239 million yuan, up 4.7% year-on-year, and a net profit attributable to shareholders of 156 million yuan, an increase of 3.59% [2] - The revenue from four main business segments in 2024 was as follows: R&D design at 152 million yuan (up 23.33%), digital management at 1.189 billion yuan (down 1.43%), production control at 334 million yuan (up 0.17%), and AIoT at 631 million yuan (up 22.04%) [2] Business Segments - The R&D design segment saw the highest growth, driven by the launch of an AI-integrated PLM product, which improved customer pricing by approximately 30% [3] - Revenue from mainland China was 1.17 billion yuan, a 1.92% increase, while revenue from non-mainland regions reached 1.15 billion yuan, a 7.53% increase [3] Industry Context - The manufacturing industry is facing challenges such as profit margin pressure and rapidly changing market demands, necessitating deeper digital transformation and enhanced flexible production capabilities [3] - The next 3 to 5 years are seen as a critical period for global supply chain restructuring, with companies needing to adopt new production logic and data governance to enhance competitiveness [4] Strategic Initiatives - Dingjie Smart plans to issue up to 838 million yuan in convertible bonds, with 688 million yuan allocated for the "Smart Ecosystem Empowerment Platform" project, aimed at achieving comprehensive digital upgrades [5] - The platform will utilize AI, big data, and IoT technologies to support modular development and cloud-native architecture, facilitating intelligent transformation in production management and supply chain collaboration [5]