Haitong International issued a research report maintaining an "outperform" rating on DC Holdings (00861). The company has abundant orders in hand, with all major business segments maintaining growth momentum. The firm maintains its EPS forecasts for 2025-2027 at RMB 0.13/0.25/0.30 (revised from previous 2025-26 forecasts of RMB 0.34/0.44 billion). Referencing comparable companies, despite profit pressures, they still maintain relatively high PE valuations, indicating market confidence in such companies. The firm maintains a 30x PE valuation for the company in 2025 (revised from 18x for 2024).

Haitong International's key viewpoints are as follows:

**H1 Performance Shows Significant Improvement, New Orders Double Year-over-Year**

In H1 2025, the company achieved operating revenue of RMB 7.865 billion, up 12.04% year-over-year; net profit attributable to shareholders of RMB 0.015 billion, up 40.70% year-over-year; adjusted net profit attributable to shareholders of RMB 0.015 billion, turning from loss to profit year-over-year. In H1 2025, the company signed new orders of approximately RMB 9.476 billion, up 98% year-over-year; as of H1 2025, orders in hand totaled RMB 10.441 billion, up 27% year-over-year, with sufficient orders in hand. The combination of performance improvement and high growth in new orders lays a solid foundation for the company's long-term business growth.

**All Three Business Segments Maintain Growth Momentum**

By business segment, in H1 2025, the company's big data products and solutions business generated revenue of RMB 1.430 billion, up 12% year-over-year, with gross profit of RMB 0.319 billion, up 1% year-over-year; software and operational services business generated revenue of RMB 2.448 billion, up 13% year-over-year, with gross profit of RMB 0.312 billion, up 18% year-over-year. Information innovation and traditional services business generated revenue of RMB 3.987 billion, up 11% year-over-year, with gross profit of RMB 0.402 billion, up 6% year-over-year.

**"Data x AI" Empowerment, Continuously Delivering Multi-scenario Vertical Intelligence Solutions**

In H1 2025, the company continued to advance its "Data x AI" strategic upgrade, strengthening the data intelligence technology foundation centered on the "Yancloud Infinity Platform" to efficiently build and deploy vertical intelligence applications that integrate industry operational experience. In smart supply chain scenarios, the company has pioneered the implementation of full-stack data intelligence solutions covering "data-decision-application," achieving deep penetration of "AI for Process"; in government and enterprise digitalization scenarios, the company launched end-to-end data intelligence solutions integrating DeepSeek private deployment, which have been successfully deployed in a municipal government service APP and created the first AI intelligent assistant.

**Risk Warnings**: Intensified industry competition risk, product implementation falling short of expectations risk, AI implementation falling short of expectations risk.