DIGIWIN SOFTWARE(300378) 华泰证券·2025-04-27 10:25Investment 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].