Core views

The company is a leading domestic database manufacturer. It has been deeply involved in the database field for more than 20 years. It relies on the CEC Group and has completely independent intellectual property rights for its core products. The company has developed steadily in the past three years, and the gross margin level is high and stable. On the industry side, at present, the main share of the global and domestic database market is still occupied by overseas vendors such as Oracle and Microsoft, but with the promotion of the Xinchuang policy and the continuous iterative improvement of the performance of domestic database products, the penetration of domestic databases is accelerating, and there is plenty of room for replacement. The company's products have independent intellectual property rights, have completed more than 7,000 software and hardware adaptations, are rich in ecology, and are expected to fully benefit from the wave of localization. We predict that in 2024-2026, the company will achieve revenue of 0.913/1.071/1.289 billion yuan, a year-on-year increase of 14.91%/17.36%/20.34%; achieve net profit to mother of 0.346/0.41/0.494 billion yuan, up 16.85%/18.63%/20.25% year-on-year, corresponding PE 51/43/36 times, respectively; corresponding PS is 19/17/14 times, respectively, for the first time coverage, giving a “buy” rating.

Report Overview

The company is a leading domestic database manufacturer with a high level of gross margin. The company has been deeply involved in the database field for more than 20 years, backed by the CEC Group, and has achieved excellent performance in the field of database localization. Database core software and other related products are widely used by party, government and central state-owned enterprise customers. The company's core team is stable, mostly from Huazhong University of Science and Technology, and has many years of experience in R&D and customer service in the database industry.

The trend of database localization is clear, and the market space is broad. Databases are one of the core basic software. Currently, relational databases are the mainstream in the industry, and non-relational databases are diversified. The database market is showing a steady growth trend. In today's context where data security is more important, the trend of localized databases is clear, and market penetration is expected to increase.

The company's database products lead the market share and have features such as high security and strong compatibility. According to IDC data, in 2023, Dameng database products had a market share of 7.45% in the domestic relational database market segment (local deployment), leading the market share of traditional domestic database vendors for three consecutive years. The company's product code is completely self-developed, and has high security. At the same time, it is compatible with mainstream international products, making it convenient for customers to switch.

Risk warning

Technology R&D risk; risk of downstream customer investment falling short of expectations; risk of increased market competition