Leading manufacturer of domestic databases, provider of full-stack data products and solutions. Dameng Data is a leading domestic full-stack data product and solution provider. The company's actual controller 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, in H2 China relational database management software (local deployment) in 2023, Dameng Data ranked fourth, with a share of 7.45%. If public cloud vendors that differ greatly from the company's business model are removed, the company's share is number one.

Database products are safe and autonomous, and have a deep accumulation. Dameng Data insists on choosing the original and innovative self-developed 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 2024-2026 revenue of 0.94, 1.132, and 1.36 billion yuan, respectively, with year-on-year growth rates of 18.34%, 20.39%, and 20.21%, respectively, and net profit to mother of 0.368, 0.454, and 0.544 billion yuan respectively. The year-on-year growth rates were 24.34%, 23.32%, and 19.74%, respectively, giving it a “buy” rating.

Risk warning: Party, government, and innovation demand falls short of expectations, industry competition is fierce, and profit forecasts are being revised.