Northeast: DC HOLDINGS (00861) has steady performance expected, "buy" rating given.

Recently, Northeast released a research report on DC HOLDINGS (00861) for the mid-term performance in 2024, giving the company a "buy" rating. The report details DC HOLDINGS' strategic layout in the big data and AI fields and the prospect of steady growth in performance. Northeast believes that the company's big data-related business operations are stable. In the first half of the year, DC HOLDINGS showed strong growth momentum. The revenue from big data products and solutions reached 1.277 billion yuan, a year-on-year increase of 17%, with a compound annual growth rate of up to 26% over the past four years. The revenue proportion increased from 9% to 18%, and the gross profit margin increased from 18% to 33%. This achievement fully demonstrates DC HOLDINGS' strength and market position in the big data field. In addition to the big data business, DC HOLDINGS has also made significant breakthroughs in the AI field. Northeast believes that DC HOLDINGS is committed to promoting the commercialization of high-quality data and AI application scenarios, reaping a rich harvest in the development direction of empowering the government and enterprises with AI technology. In the first half of the year, the company successively won bids for various major AI projects, such as the Jilin Changchun New Area Artificial Intelligence New Infrastructure (Smart Computing Center) Project, the Changchun City Computing Center Phase II AI+ Industry Model Software and Service Project, and the Jilin Smart Water Conservancy Project, among others. The successful bids for these projects have not only brought considerable income to the company but also further enhanced its competitiveness and influence in the AI field. Furthermore, DC HOLDINGS is also vigorously developing the Supply Chain Control Tower project to provide intelligent management analysis for enterprises. This project integrates various data sources such as ERP, SCM, WMS, CRM, and collects various data output from daily operation equipment of enterprises, providing the necessary data insights, analysis, and intelligent decision-making for end-to-end production management through a visual interface. This will help manufacturing enterprises improve business agility, solve data silo problems, and achieve intelligent data analysis and decision support. The company's research and development expenses in the first half of 2024 reached 320 million yuan, leading in the industry, laying the foundation for the company to sustain technological innovation. In recent years, DC HOLDINGS has been focusing on the "big data + AI" strategy and continuously promoting the "City CTO + Enterprise CSO" model, using the city's digital large-scale scenes as an entry point to comb out the core industrial ecology of the city with big data and AI technology, thereby serving the digital transformation of leading enterprises, gradually realizing the transition from early construction-type income to operational income. In the future, with the company's continued investment and deep cultivation in the big data and AI fields, its performance is expected to achieve steady growth, bringing more returns to investors.