The company is a leader in domestic databases. It has achieved full-stack data product coverage, and its performance has been growing steadily in recent years.
The company was founded in 2000. The founding team has been deeply involved in the database industry for many years, becoming a key promoter of domestic databases, and has been at the top of China's domestic database software market share rankings for many years. The company first launched shared cluster software (DMDSC) in China, breaking Oracle's monopoly. It has now completed coverage from general relational database products to full-stack data products. Cloud databases and distributed databases have all made substantial contributions. Benefiting from the development of the Xinchuang industry, the compound revenue growth rate of the company exceeded 27% in 19-23, the compound growth rate of net profit after deducting non-return to mother exceeded 37%, and the company's manpower efficiency continued to improve. In recent years, the company has continued to expand the market at the industry level, and the share of the party and government has declined. Quantity licensing is the company's main business model, and the unit price increased steadily from 22-23. The company's channel advantage is obvious.
The database industry is growing steadily, and Xinchuang helps domestic manufacturers. According to data from the Academy of Information and Communications Technology, it is estimated that by 2027, the total size of China's database market will reach 128.68 billion yuan, with a compound annual growth rate of 26.1%.
Benefiting from the rapid development of the industry, the number of domestic database products and vendors is also growing rapidly. Databases are one of the most important basic software in the IT industry. The product direction is full of flowers. In recent years, it has continued to innovate and develop into non-relational, HTAP, distributed, and cloud databases. At present, the Xinchuang industry has entered a large-scale promotion period, the construction of the 2+8+N industry will accelerate, and basic software such as databases will fully benefit. According to data from CCD Consultants, future plans for corporate customer databases are already favoring domestic products, and Dameng and Internet manufacturers rank among the top products.
The company is leading in innovation technology and ecology, and continues to open up growth points in the field of emerging databases. Currently, the company's revenue volume and profitability are in the first tier of the industry. The share of locally deployed databases is 7.45%. Among non-cloud vendors, the company ranks first in domestic production. The company's overall technology is leading domestically and internationally advanced. It differs from Oracle's performance data in various test scenarios. Unlike most manufacturers, which are developed based on open source databases, the company has insisted on self-developed code from beginning to end. The product code's independent original rate is as high as 100%, and it has full decision-making power over the direction of product technology development. The company's Xinchuang ecosystem has a perfect layout. It has been optimized with more than 1,000 mainstream basic software and hardware, and has completed compatibility and adaptation with more than 8,100 products from many upstream and downstream manufacturers in the industrial chain, and has accumulated a considerable number of application cases. At the same time, the company is actively investing in the direction of database innovation and development. For example, DM8 supports distributed transaction clusters, and can also support various application scenarios such as HTAP; the company has built cloud and distributed database product lines, and revenue has begun to take shape.
Profit forecasting and valuation: As a domestic database leader, the company fully benefits from the development of the Xinchuang industry. In 2024-26, the company's revenue is expected to be 938/11.53/1,448 million yuan; net profit to mother is 3.53/4.36/565 million yuan, and EPS is 4.64/5.74/7.43 yuan, respectively. Through multi-angle valuation, the reasonable valuation range for the company's stock is between 241.28-255.92 yuan. Compared with the company's current stock price, there is 17%-24% valuation space.
The first coverage gave it an “superior to the market” rating.
Risk warning: Competition in the industry intensifies; IT spending in downstream industries is tightening; Xinchuang's progress falls short of expectations, etc.