A leader in domestic databases and a leading domestic full-stack data product and solution provider. Dameng Data is a leading provider of full-stack data products and solutions in China. The actual controller of the company has a deep technical background. After listing, China Software held 18.91% of its shares. The company provides a series of database products and related technical services to large and medium-sized companies, enterprises, institutions, party and government organs, such as various database software and cluster software, cloud computing and big data products, all-in-one database machines, etc. According to IDC statistics, Dameng Data ranked fourth among H2 Chinese relational database management software (local deployment) in 2023, with a share of 7.45%.
Database products are safe and autonomous, and have a deep accumulation. Compared to open source software and technology outsourcing routes, which are difficult to start and relatively low in technical complexity, Dameng Data insists on choosing the original and innovative independent research and development technology route. The company independently writes the core source code for database products, and has mastered all the implementation principles and system frameworks of Dameng database software. The code security is high. It has achieved level 4 and EAL4+ certification and review by the Ministry of Public Security and the National Network and Information System Security Product Quality Supervision and Inspection Center. It is currently a highly secure database product in domestic databases.
The compound growth rate of China's database industry is expected to reach 26.1% from 2022 to 2027. Combined with the promotion of Xinchuang, domestic databases are expected to develop rapidly. According to the “Database Development Research Report” issued by the Academy of Information and Communications Technology, China's database market size is 40.36 billion yuan in 2022, and is expected to reach 128.68 billion yuan by 2027, with a compound market growth rate of 26.1%. With the rapid expansion of China's database industry, the rapid advancement of innovation in the eight major industries, and the sinking of party, government, and credit innovation in counties and villages, the domestic database industry is expected to usher in rapid growth.
Profit forecast: We forecast Dameng Data's revenue for 2024-2026 to be 940, 11.32 billion yuan, and 1,360 million yuan, respectively, with year-on-year growth rates of 18.34%, 20.39%, and 20.21% respectively, and net profit to mother of 3.68, 4.54, and 544 million yuan respectively. The year-on-year growth rates were 24.34%, 23.32%, and 19.74%, respectively. The first coverage gave it a “buy” rating.
Risk warning: Xinchuang's promotion fell short of expectations; industry competition intensified; profit forecasts were revised downgraded.