Wuhan Dameng Database Co., Ltd. (Dameng Data) (688692)

Equity Research Report　|　Industry: Database Infrastructure Software and IT Services　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; technical indicators are primarily calculated using data as of the September 11, 2026 close, while the MACD and RSI sections use publicly disclosed data as of September 10, 2026

This report has been automatically compiled by AI based on publicly available information and is provided for reference only. It does not constitute investment advice.

1. Executive Summary

Dameng Data generated revenue of RMB 712.81 million in 1H 2026, up 36.27% year on year, while net profit attributable to the parent increased only 7.99% to RMB 221.02 million, and non-recurring-adjusted net profit attributable to the parent rose 10.91%. Revenue growth was significantly faster than profit growth, mainly due to share-based compensation expenses and relatively rapid increases in selling, R&D and administrative expenses. Net cash flow from operating activities was RMB 4.5134 million during the same period, down 52.86% year on year, indicating that earnings expansion has been accompanied by pressure on margins and cash flow.

The company’s core growth continues to be driven by database software licensing. In 2025, software product usage licensing revenue was approximately RMB 1.209 billion, accounting for approximately 92.55% of revenue from principal operations and increasing 35.21% year on year, with a gross margin of 99.73%. This drove the company’s overall gross margin on principal operations to recover to approximately 96.13% in 2025. Software product usage licensing revenue was RMB 656.64 million in 1H 2026. DM9, GDMBASE V4.0, Dameng Qiyun Database V4.0 and DAMENG PAI V2.0 were released in April 2026. Subsequent growth will depend on the commercialization of new products and the continuation of demand for domestic substitution in databases.

The company has advantages in domestically deployed relational databases, centralized transaction-processing databases for the financial sector and accumulated large government and enterprise customers. However, customer concentration is relatively high: sales to the five largest customers accounted for 48.11% of revenue in 2025, while the two largest customers together accounted for approximately 41.60%. Accounts receivable amounted to approximately RMB 509 million, equivalent to approximately 39.1% of 2025 revenue from principal operations. Database appliances, industry solutions and maintenance services help strengthen customer stickiness, but their gross margins of 38.75%, 42.10% and 57.92%, respectively, are significantly below that of software licensing.

As of September 11, 2026, the company’s share price closed at RMB 203.42, down approximately 21.1% from the August 18 close and near the 52-week low. The current price is below the MA5, MA10 and MA20, while the MACD is below the zero axis. The technical picture remains weak, with around RMB 202 an important area to monitor. Based on the provided data, the static P/E is approximately 44.6x and the TTM P/E approximately 43.2x. The valuation already incorporates relatively high growth expectations, while institutions show significant divergence in their 2026–2028 earnings forecasts and price targets.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Database software: Includes the DM7 and DM8 series of relational databases, as well as new cloud cache databases, new cloud document databases and new cloud time-series databases. Software product usage licensing revenue was RMB 1.209 billion in 2025, accounting for approximately 92.55% of revenue from principal operations, up 35.21% year on year, with a gross margin of 99.73%.
• Cluster software: Includes data-guard clusters, read/write separation clusters, data-sharing clusters, massively parallel processing clusters and distributed computing clusters, mainly used for high availability, load balancing, horizontal scaling, fault recovery and disaster recovery.
• Cloud computing and big-data products: Includes data replication, data integration, data synchronization, data extraction, cleansing and transformation, data fusion management platforms, and the Dameng Qiyun and Qizhi product series. These products serve database migration, data warehouses, big-data platforms and cross-departmental data sharing.
• Database appliances: Combine servers, switches, basic software, database software and cluster software for intensive transaction processing, multi-tenancy, cloud database resource pools and high-load business scenarios. Revenue was RMB 20.2636 million in 2025, accounting for approximately 1.55%, up 55.24% year on year, with a gross margin of 38.75%.
• Maintenance and technical services: Include database installation and deployment, technical support, product upgrades, on-site services, database migration and operations and maintenance. Revenue was RMB 50.3994 million in 2025, accounting for approximately 3.86%, up 33.46% year on year, with a gross margin of 57.92%.
• Data and industry solutions: Target IT application construction, data governance, data analytics and industry-specific scenarios. Revenue was RMB 23.2342 million in 2025, accounting for approximately 1.78%, down 76.30% year on year, with a gross margin of 42.10%; 2024 had a high base due to the acceptance of a single large project.

2.3 Position in the Industry Value Chain and Cost/Profit Structure

Dameng Data operates in a relatively core position in the middle reaches of the IT infrastructure software value chain. Upstream are CPUs, servers, storage, network equipment, operating systems, middleware and cloud infrastructure; downstream are IT systems serving government and party organizations, finance, electricity, energy, communications, transportation, aviation, healthcare, education and national defense. The company’s core value lies in database kernels, product development, ecosystem adaptation, customer certification and technical services. Profit is primarily driven by standardized database software licensing.

• The main inputs for the software licensing business are not bulk raw materials, but R&D personnel, database kernel technology, testing environments, operating-system and middleware adaptation, and sales and service networks.
• The database appliance and solutions businesses require the procurement of CPUs, servers, storage equipment, network switches and basic software. In 2025, database appliance costs mainly comprised servers, switches, basic software, production and installation labor, and after-sales warranty expenses.
• Procurement from the five largest suppliers was approximately RMB 12.5777 million in 2025, accounting for 61.72% of total procurement; procurement from the largest supplier was RMB 4.9280 million, or 24.18% of total procurement. The company disclosed that no individual supplier accounted for more than 50% of procurement and that it was not heavily dependent on a small number of suppliers. These concentration figures are based on 2025 public disclosures; supplier names are anonymized on certain public pages.
• The company’s cost sensitivity to hardware suppliers is concentrated in database appliances and solutions rather than core software licensing. In 2025, software product usage licensing revenue was RMB 1.209 billion, with corresponding operating costs of RMB 3.2784 million and a gross margin of 99.73%, indicating low dependence on hardware inputs in the core software business.
• The core software licensing business benefits from strong economies of scale and cost advantages, while hardware, basic software and implementation labor reduce the gross margins of the appliance and project-based businesses.
• Downstream customers mainly include government and party organizations, large and medium-sized enterprises, public institutions, and customers in finance, electricity, energy, communications, transportation, aviation, public security, healthcare, education and national defense.
• Sales to the five largest customers totaled RMB 628 million in 2025, accounting for 48.11% of annual revenue. Sales to the largest customer were RMB 276 million, or 21.14%; sales to the second-largest customer were RMB 267 million, or 20.46%; the two largest customers together accounted for approximately 41.60%. These concentration figures are based on 2025; customer names are anonymized on certain public pages, and the specific customer composition cannot be verified solely from public summaries.
• Large government and enterprise projects typically use tendering, centralized procurement or framework procurement. Customers have large procurement volumes and relatively strong bargaining power, while revenue recognition is also affected by implementation, acceptance and budget schedules.
• Once a database enters a customer’s core production system, replacement involves data migration, application adaptation, performance tuning and business continuity risks. Customer switching costs are therefore high; however, customers retain relatively strong bargaining power in standardized software procurement and large projects.
• Software licensing has a high degree of standardization, low marginal costs and economies of scale. Data and industry solutions, database appliances and on-site maintenance require more hardware, implementation and labor inputs, resulting in materially lower gross margins than software licensing.
• As of December 31, 2025, accounts receivable were approximately RMB 509 million, equivalent to approximately 39.1% of 2025 revenue from principal operations, and receivables turnover was approximately 126.7 days. This indicates that government and enterprise customers, large projects and acceptance-based businesses tied up a certain amount of working capital. Net cash flow from operating activities was approximately RMB 535 million in 2025, higher than net profit attributable to the parent of approximately RMB 517 million, but collection from major customers, receivables aging, contract assets and project acceptance still require monitoring. The receivables turnover metric comes from public financial data platforms and may differ from the annual report basis.
• Both customer and supplier concentration are relatively high: the five largest customers accounted for 48.11% of annual revenue in 2025, while the five largest suppliers accounted for 61.72% of total procurement. Customer concentration is explicitly based on 2025, but customer names are anonymized on certain public pages, and the relevant public summaries do not permit further cross-verification. Supplier concentration is likewise based on 2025 disclosures. High customer concentration could allow procurement schedules, delayed project acceptance or fluctuations in a single customer’s purchases to affect revenue. The absolute procurement amount from suppliers is relatively small compared with principal revenue, limiting its direct impact on overall profit.

Dameng Data occupies a relatively core, high-margin and asset-light software position in the middle of the IT value chain, rather than an upstream resource or downstream consumer-brand position. Current profit is primarily driven by standardized database licensing. Further profit improvement will depend on expanding the scale of software licensing, deeper domestic substitution in core sectors such as finance, energy and government, commercialization of distributed and cloud databases, and cost control as database appliances and industry solutions scale up. Although the latter two businesses have lower gross margins, they help strengthen customer stickiness and enable entry into core production systems.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2026 interim report was disclosed on August 26, 2026 and is unaudited; the 2025 annual report was audited by ShineWing Certified Public Accountants. In 1H 2026, non-recurring-adjusted net profit attributable to the parent was RMB 209.13 million, up 10.91% year on year; basic EPS was RMB 1.95, up 7.73%.

Revenue growth in 1H 2026 was significantly faster than growth in net profit attributable to the parent, mainly due to share-based compensation expenses. Excluding the impact of share-based compensation, first-half net profit was approximately RMB 286 million, up 41.44% year on year. Selling expenses were RMB 260.07 million, up 52.21%; R&D expenses were RMB 160.81 million, up 43.90%; administrative expenses were RMB 73.46 million, up 53.39%; and R&D investment represented 22.56% of revenue. Net cash flow from operating activities was RMB 4.5134 million, down 52.86% year on year. Revenue was mainly derived from software product usage licensing, which generated RMB 656.64 million in 1H 2026. Software product usage licensing revenue was approximately RMB 1.2086 billion in 2025, accounting for approximately 92.55% of revenue. The company’s gross margin was approximately 96.12% in 2025.

3.2 Earnings Forecasts

According to the Tonghuashun F10 summary, as of September 11, 2026, 15 institutions had issued forecasts for FY 2026 over the preceding 6 months. The average revenue and earnings forecasts are extracted from publicly available research reports and are not exchange or company guidance. Representative institutional forecasts differ: Huachuang Securities forecasts 2026–2028 revenue of RMB 1.829 billion, RMB 2.397 billion and RMB 3.138 billion, net profit attributable to the parent of RMB 642 million, RMB 854 million and RMB 1.089 billion, and EPS of RMB 5.67, RMB 7.55 and RMB 9.62; Kaiyuan Securities forecasts net profit attributable to the parent of RMB 699 million, RMB 899 million and RMB 1.122 billion, and EPS of RMB 6.17, RMB 7.94 and RMB 9.91; Ping An Securities forecasts net profit attributable to the parent of RMB 627 million, RMB 806 million and RMB 1.029 billion, and EPS of RMB 5.54, RMB 7.12 and RMB 9.08; and China Merchants Securities forecasts net profit attributable to the parent of RMB 521 million, RMB 695 million and RMB 997 million, and EPS of RMB 4.60, RMB 6.14 and RMB 8.81.

3.3 Valuation and Institutional Ratings

The most recent trading day was September 11, 2026, when the shares closed at approximately RMB 203.44, down approximately 2.45% for the day. Based on total shares outstanding of 113.24 million as of June 30, 2026, estimated market capitalization was approximately RMB 23.04 billion. Based on 2025 net profit attributable to the parent of RMB 516.62 million, the static P/E was approximately 44.6x. Based on 1H 2026 and the corresponding period of 2025 on a rolling basis, TTM net profit attributable to the parent was approximately RMB 533 million, implying a P/E of approximately 43.2x. China Finance Online disclosed a dynamic P/E of approximately 43.22x, a non-recurring-adjusted P/E of approximately 43.45x and a P/B of approximately 5.91x as of September 9, 2026. Based on the average institutional EPS forecasts, the current share price implies forecast P/Es of approximately 34.9x, 27.2x and 21.6x for 2026, 2027 and 2028, respectively. Under different institutional methodologies, 2026 forecast P/E is approximately 29–39x. Based on Kaiyuan Securities’ EPS forecasts, the implied P/Es are approximately 38.5x, 29.9x and 24.0x, respectively. Overall, the current TTM P/E of approximately 43x and P/B of approximately 5.9x already reflect relatively high growth expectations. Further valuation upside will depend on software licensing growth, changes in the impact of share-based compensation, and whether DM9, database appliances and AI-plus-database products generate new revenue and profit growth. Key uncertainties include the possibility that share-based compensation will continue to suppress reported profit growth, rapid increases in selling and R&D expenses will pressure margins and cash flow, and substantial divergence among institutional earnings forecasts and price targets.

4. Recent News and Announcements

4.1 1H 2026 Results Continued to Grow, with Higher R&D Investment

On August 26, 2026, Dameng Data disclosed its 2026 interim report. Revenue in 1H 2026 was RMB 712.81 million, up 36.27% year on year; net profit attributable to shareholders of the listed company was RMB 221.02 million, up 7.99%; and non-recurring-adjusted net profit was RMB 209.13 million, up 10.91%. The report was unaudited. R&D investment was RMB 160.81 million, up 43.90%, representing 22.56% of revenue. The company disclosed that DM9, GDMBASE V4.0, Dameng Qiyun Database V4.0 and DAMENG PAI V2.0 were released in April 2026.

4.2 Interim Cash Dividend Plan Approved by Shareholders

On August 25, 2026, the board approved an interim profit distribution plan proposing a cash dividend of RMB 7 per 10 shares, based on total shares outstanding on the record date for the equity distribution. The expected total cash dividend was RMB 79.268 million, representing 35.86% of 1H 2026 net profit attributable to the parent. No bonus shares or capital reserve capitalization were proposed. The 2026 third extraordinary general meeting held on September 11, 2026 approved the plan, with 99.9182% of voting rights attached to ordinary shares voting in favor. The actual dividend payment date will be subject to the subsequent equity distribution implementation announcement.

4.3 China Electronics Jintou and Concert Parties Increase Their Stake to 25%

On July 28, 2026, China Electronics Jintou Holdings Co., Ltd. increased its holdings in Dameng Data by 11,758 shares through centralized bidding. Following the purchase, China Electronics Jintou and its concert party China National Software and Service Co., Ltd. held an aggregate of 28,310,000 shares, increasing their combined ownership from 24.99% to 25.00% of total shares outstanding. The transaction did not trigger a mandatory tender offer and did not result in a change in the company’s actual controller.

4.4 China Electronics Jintou Continued to Increase Its Stake Through Block Trades in August

On August 6, 2026, China Electronics Jintou increased its holdings by 2.217 million Dameng Data shares through block trades, equivalent to approximately 1.9578% of total shares outstanding and approximately 2.99% of the tradable share capital. The average transaction price was approximately RMB 215.82 per share, with a transaction value of approximately RMB 478.5 million. Following the purchase, the combined stake held by China Electronics Jintou and its concert party China National Software increased further. The transaction was mainly completed through block trades, with limited disclosure of the counterparties. Subsequent ownership should be based on relevant changes in equity or shareholder ownership announcements.

4.5 Reserved Portion of the 2025 Restricted Stock Incentive Plan Granted

On August 26, 2026, the company disclosed announcements concerning the grant of reserved restricted shares under the 2025 restricted stock incentive plan. From August 27 to September 5, 2026, the company publicized the list of participants for the reserved grant. On September 9, it disclosed the verification opinion and explanation of the publicity process; no employee objections were received during the publicity period. The reserved grantees mainly comprise key personnel of the company and its subsidiaries and other personnel deemed necessary to incentivize by the board. They do not include company directors, senior executives, shareholders holding more than 5% or the actual controller. The incentive plan may create pressure from the amortization of share-based compensation expenses. The specific impact will depend on the formal number of shares granted, grant price and other details.

4.6 Litigation Concerning Confirmation of Shareholder Status Is in the Appeal Period Following the First-Instance Judgment

On July 2, 2026, the company disclosed an update concerning litigation over confirmation of shareholder status. The amount in dispute was RMB 59.366925 million, and the company was the defendant. The case was at the first-instance judgment stage. The first-instance judgment involved arrangements concerning relevant shares, cash dividends, bonus shares and capitalized shares. Dameng Data was not required to pay the plaintiff any amount and was only required to bear judicial appraisal fees and the appraisal expert’s appearance fee, totaling RMB 70,131. The company disclosed that the judgment had not yet taken effect and remained within the appeal period. It was not expected to have a material impact on current-period or subsequent-period profit, although uncertainty remains regarding any appeal, the effectiveness of the judgment and the disposal of the shares.

4.7 Continued Efforts to Improve Quality and Efficiency, R&D and Investor Relations

On August 26, 2026, the company disclosed an implementation progress report for its 2026 “Improve Quality and Efficiency, Enhance Returns” action plan. It stated that the company continued to increase R&D investment, advance product iteration and expand the market in 1H 2026. It had also implemented a 2025 cash dividend of RMB 10 per 10 shares and proposed an interim 2026 cash dividend of RMB 7 per 10 shares. On September 4, 2026, the company held its 2026 interim results presentation and disclosed investor-relations activity records on September 8. The company also disclosed China Merchants Securities’ ongoing supervision and follow-up report for 1H 2026.

4.8 No New Third-Quarter Earnings Guidance, Share Repurchase or Major M&A Announcement Identified

As of September 13, 2026, no new earnings forecast, earnings preannouncement, earnings-growth preannouncement or earnings-decline preannouncement concerning the first three quarters of 2026 or FY 2026 had been identified. No new share repurchase proposal or implementation announcement disclosed between July and September 2026 had been identified. No announcement concerning a major asset purchase, sale, merger, acquisition or major restructuring had been identified. Recent shareholding changes mainly resulted from purchases by China Electronics Jintou and its concert party.

4.9 No New Major Negative Regulatory Matters Identified

As of September 13, 2026, no new major negative regulatory matters, including regulatory penalties, formal investigations, major violations or exchange inquiry letters, had been identified in the current public announcements.

5. Share Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Dameng Data closed at RMB 203.42, near the low end of its 52-week range. The share price declined from RMB 257.89 at the August 18 close to RMB 203.42, a decline of approximately 21.1% over roughly 20 trading days, and remains in a short- to medium-term downtrend. The moving averages are bearishly aligned, with MA5 below MA10 and MA10 below MA20, while the current price is below all three averages. The MACD remains below the zero axis with a negative histogram, indicating that bearish momentum has not fully dissipated. RSI6 recovered to 30.5, easing short-term oversold conditions, but this alone is insufficient to confirm a trend reversal. The share price is currently near recent and 52-week support around RMB 202, while approximately RMB 13.60 above the Bollinger lower band. The key points to monitor are whether support around RMB 202 holds and whether the price can recover the RMB 208.5–RMB 213.5 resistance zone on higher volume.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on the closing data as of September 11, 2026, historical prices and technical indicators. It does not constitute investment advice or a guarantee of future actual performance.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weighting, Not Statistical Probabilities)

• Weak-range consolidation (relatively high weighting, approximately 60%; this is a subjective heuristic based on the current technical picture and fund flows, not a statistical probability): An observation range of approximately RMB 200~213. Conditions include support around RMB 201.5~204, turnover value remaining approximately RMB 100 million~RMB 200 million without sustained high-volume selling, and the price failing to decisively break above RMB 210~213 while not yet breaking below the RMB 200 round-number level. The likely pattern could be repeated fluctuations in the RMB 200~210 area accompanied by an oversold rebound, while the 20-day moving average at approximately RMB 222.82 remains overhead resistance.
• Weak downward movement (medium weighting; a subjective heuristic based on current technical indicators and fund flows, not a statistical probability): An observation range of approximately RMB 190~202. Conditions include the closing price decisively breaking below RMB 201.5~202, with turnover value materially higher than the recent low-volume level of approximately RMB 100 million~RMB 160 million, reaching above RMB 200 million, while the MACD green histogram continues to expand and RSI6 falls below 30 again. If the low around RMB 202 is broken on higher volume, the price may seek support around RMB 195~200 and move closer to the Bollinger lower band near RMB 190.
• Strengthening rebound (low-to-medium weighting; a subjective heuristic based on the current bearish moving-average alignment, MACD position and volume conditions, not a statistical probability): An observation range of approximately RMB 210~220, and RMB 220~225 in a strong scenario. Conditions include the share price reclaiming RMB 208.5~210.5, then breaking the RMB 213.5~215 resistance zone, with turnover value expanding consecutively to approximately RMB 250 million or more. Simultaneous strength in the computer or domestic database sectors, or company announcements, industry policies or order information that improve market expectations, could reinforce this scenario. If the price stabilizes above RMB 210~213 on higher volume, RMB 215~220 may be observed; if it further breaks above RMB 220, the area around MA20 at approximately RMB 222.8 may be observed. However, with MACD still below the zero axis and MA5 and MA10 below MA20, this should initially be viewed as a technical repair rather than a confirmed medium-term trend reversal.

③ Fund Flow and Liquidity Background

As of September 11, 2026, the most recent verifiable daily turnover rate was 1.09%, with turnover value of approximately RMB 164 million. On September 10, the turnover rate was 0.61%, with turnover value of approximately RMB 93 million. Recent turnover value was mainly between approximately RMB 90 million and RMB 240 million, with certain large-movement days exceeding RMB 300 million–RMB 500 million. Shareholder structure data as of June 30, 2026 show that the ten largest tradable shareholders held approximately 38.8322 million shares in aggregate, representing 52.37% of tradable shares. Tonghuashun reported main institutional holdings of approximately 43.5859 million shares, or approximately 58.77% of tradable A shares, down approximately 2.5318 million shares from December 31, 2025, with 37 funds reducing their holdings on a net basis. The ten largest tradable shareholders included China National Software, China Electronics Jintou and other state-owned legal entities and industrial capital, as well as funds and other institutional investors. These shareholder and institutional holding figures are a quarter-end snapshot as of June 30, 2026. Holdings may have changed during the more than two months before September 11 and should not be regarded as real-time ownership data. In practice, when turnover and turnover value decline, prices may become more sensitive to a small amount of active buying or selling, making order-book depth and short-term support important to monitor. If turnover value continues to expand during a decline, selling pressure may be shifting from passive adjustment to active realization.

A verifiable volume-confirmation signal would be a daily turnover value of approximately RMB 250 million or more for two consecutive days, together with a closing price above the RMB 210~213 resistance zone. This could indicate improved participation by funds. If turnover value expands significantly when RMB 202 is broken, downside risk would increase. These thresholds are based on the company’s recent turnover-value range of approximately RMB 90 million~RMB 380 million and are not statistical probability conclusions or trading instructions.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Monitor whether support at RMB 202~204 holds; if it breaks, pay further attention to RMB 195~200 and RMB 190~193.
• Monitor whether the RMB 208.5~213.5 resistance zone can be broken while turnover value expands consecutively to approximately RMB 250 million or more.
• Monitor whether the negative MACD histogram narrows, whether DIF moves upward toward DEA, and whether RSI6 can stabilize above 35.
• Monitor whether main-fund outflows end and whether this is confirmed by turnover value reaching approximately RMB 250 million or more on a sustained basis. These are observation points only, not trading instructions.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news flow, fund flows, the broader market environment and other factors. Technical indicators themselves have lagging effects and limitations. This does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

The database industry is a technology- and talent-intensive infrastructure software industry characterized by long customer certification cycles and high ecosystem barriers. Databases occupy an intermediate position in the IT value chain: upstream are CPUs, servers, storage, operating systems and middleware, while downstream are application software and industry information systems. Databases are a key infrastructure software segment in the information technology application innovation industry chain.

6.2 Competitive Landscape

• Industry competitors mainly include traditional database vendors, cloud database vendors, overseas database vendors, and emerging distributed and open-source ecosystem vendors.
• Traditional database vendors include Dameng Data, Kingbase, GBase, Shenzhou General, Vastdata and Highgo Database, mainly covering relational databases, centralized databases and industry databases.
• Cloud database vendors include Huawei Cloud GaussDB, Alibaba Cloud PolarDB and OceanBase, Tencent Cloud TDSQL and Baidu AI Cloud databases. They have infrastructure or customer-traffic advantages in public cloud, cloud-native, distributed and elastic-computing applications.
• Overseas vendors include Oracle, Microsoft SQL Server, IBM and SAP, which continue to have product, ecosystem and customer-base advantages in core systems of large enterprises.
• Emerging distributed and open-source ecosystem vendors include PingCAP, SequoiaDB, database-related businesses under Chuangyi Information and other vendors commercializing services based on open-source databases. Their focus is on distributed, cloud-native, real-time analytics and internet business scenarios.
• Public industry research indicates that relational databases accounted for approximately 76% of China’s database market in 2024. The CR10 of the locally deployed relational database market was approximately 45%, with Huawei Cloud at approximately 12.8%, Dameng Data at approximately 8.1%, Tencent Cloud at approximately 4.0%, ApsaraDB at approximately 3.5% and Kingbase at approximately 3.4%. These figures are affected by statistical definitions, deployment methods and whether revenue or usage is measured, and should not be regarded as company market shares on a unified basis.
• The company’s 2025 interim report cited IDC data indicating that Dameng Data ranked first among domestic vendors in the 2024 market share of centralized transaction-processing databases for the financial sector, with a 13.48% share. This figure applies only to the financial-sector, centralized and transaction-processing database segment and should not be extrapolated to China’s overall database market.
• The database industry still uses multiple classifications, including centralized, distributed, cloud database, on-premise, public cloud and industry markets. The relative strength of each vendor must be assessed in the context of specific application scenarios.

6.3 Major Competitors

Dameng Data is in the leading group in such segments as domestic on-premise relational databases and centralized transaction-processing databases for the financial sector. Its core competitiveness comes from standardized database software, experience in domestic substitution, accumulated government and large-industry customers, ecosystem adaptation and high software licensing gross margins. Compared with cloud vendors, the company has relatively limited cloud-platform and upstream/downstream hardware and software coordination resources. Compared with database companies focused on services and infrastructure, the company has a higher software licensing mix and higher gross margins. Compared with distributed and cloud-native vendors, it has deeper experience in traditional centralized databases, domestic substitution and large industry projects. Market-share data come from different third-party research sources with inconsistent scopes and definitions and therefore cannot be used to rank vendors simply across different methodologies.

7. Risk Factors

• High customer concentration: Sales to the five largest customers accounted for 48.11% of revenue in 2025, while the two largest customers together accounted for approximately 41.60%. Procurement schedules, budget arrangements, tender results or delayed project acceptance by large government and enterprise customers could materially affect revenue recognition and operating cash flow.
• Accounts receivable and collection risk: As of December 31, 2025, accounts receivable were approximately RMB 509 million, equivalent to approximately 39.1% of 2025 revenue from principal operations, and receivables turnover was approximately 126.7 days. Slower collections, aging extensions or delayed contract acceptance by major customers could increase working-capital usage and credit-impairment pressure.
• Risk of profit growth lagging revenue growth: In 1H 2026, revenue grew 36.27% year on year, but net profit attributable to the parent increased only 7.99%. Share-based compensation and selling, R&D and administrative expenses rose rapidly. If expenses continue to grow faster than revenue and gross profit, reported margins may remain under pressure.
• Operating cash-flow volatility: Net cash flow from operating activities was RMB 4.5134 million in 1H 2026, down 52.86% year on year and materially weaker than revenue growth. Changes in the mix of project-based businesses, accounts receivable collection and acceptance schedules could cause further divergence between profit and cash flow.
• Business mix and gross-margin risk: Software licensing has a gross margin of approximately 99.73%, while database appliances, data and industry solutions, and maintenance and technical services have gross margins of approximately 38.75%, 42.10% and 57.92%, respectively. If low-margin businesses expand while software licensing growth is insufficient, overall gross margin and profitability could decline.
• R&D and product commercialization risk: The company has released DM9, GDMBASE V4.0, Dameng Qiyun Database V4.0 and DAMENG PAI V2.0, but whether the new products can complete customer certification and ecosystem adaptation and generate recurring revenue remains to be verified. Slower-than-expected progress in distributed, cloud-native or AI database applications could affect the subsequent growth trajectory.
• Intensifying competition: The company faces competition from Kingbase, Nanda General, Vastdata, Huawei Cloud GaussDB, OceanBase and overseas database vendors. Cloud vendors have coordination advantages across cloud platforms, servers, chips and operating systems, which could pressure the company’s expansion in cloud databases, project wins and pricing power.
• Share-based compensation and equity-incentive risk: The reserved portion of the 2025 restricted stock incentive plan was launched in 2026. Related share-based compensation expenses may continue to affect profit growth, with the specific impact depending on the formal number of shares granted, grant price and subsequent amortization schedule.
• Valuation and share-price volatility risk: As of September 11, 2026, the company’s TTM P/E was approximately 43.2–44.3x, while the share price had fallen approximately 21.1% from August 18 and technical indicators were bearishly aligned. If results fall short of institutional forecasts or expense and cash-flow pressure continues, the relatively high valuation could amplify share-price volatility.
• Uncertainty related to litigation and shareholder-rights arrangements: The amount in dispute in the shareholder-status litigation was RMB 59.366925 million. The first-instance judgment has not taken effect and remains within the appeal period. Although the company disclosed that it expected no material impact on current-period or subsequent-period profit, uncertainty remains regarding any appeal, the effectiveness of the judgment and the disposal of the relevant shares.

8. Conclusion and Outlook

Dameng Data’s medium- to long-term growth drivers mainly include domestic substitution in databases, penetration of core sectors such as government, finance and energy, expansion of standardized database licensing, and commercialization of DM9, cloud databases, distributed products and AI-plus-database products. The company has a high software licensing mix, low marginal costs and high gross margins. Once its database enters a customer’s core production system, switching costs are relatively high, supporting customer stickiness and economies of scale. The recent increase in holdings by China Electronics Jintou and its concert party also reflects a higher stake held by industrial capital.

The quality of short-term earnings still requires monitoring, including changes in share-based compensation expenses, selling and R&D investment, project acceptance and collection from major customers. Revenue grew rapidly in 1H 2026, but net profit attributable to the parent grew relatively slowly and operating cash flow declined year on year. If low-margin businesses such as appliances and industry solutions become a larger proportion of revenue, or if core software licensing growth slows, profit elasticity could fall below market expectations. Institutional forecasts still anticipate relatively high profit growth in 2026–2028, but these are not company guidance, and the forecast ranges among institutions are wide.

From a valuation and market-performance perspective, the company currently trades at approximately 43x TTM P/E and approximately 5.9x P/B, while the share price is near recent lows. Future performance will depend on earnings delivery, improvement in expenses and cash flow, and the scaling of new products. Technically, support around RMB 202–204, resistance around RMB 208.5–213.5 and changes in trading volume are factors to monitor when assessing whether the current weak-range trading pattern can improve. However, technical indicators alone cannot confirm a medium-term trend reversal.

Data Sources

• Company Code: 688692 Company Abbreviation: Dameng Data
• https://file.finance.sina.com.cn/211.154.219.97%3A9494/MRGG/CNSESH_STOCK/2025/2025-8/2025-08-28/11389237.PDF
• Dameng Data (688692)_Company Announcements_Dameng Data: 2025 Annual Report_Sina Finance
• Dameng Data (688692)_Company Announcements_Dameng Data: 2025 Annual Report_Sina Finance
• Dameng Data (688692) A-Share Financial Report-Publicly traded company
• Dameng Data (688692) Financial Indicators_Sina Finance
• Dameng Data (SH688692) - A Shares - Holdle
• Dameng Data: Maintaining Original Innovation and Striving to Become a Top Provider of Full-Stack Data Products and Solutions
• Wuhan Dameng Database Co., Ltd. 2024 Annual Report
• 20250614 First New Voice Think Tank: 2025 China Database Market Research Report | PDF
• [2025 China Database Management System (DBMS) Industry Development Background, Market Size, Corporate Landscape and Future Trends: DBMS Market Exceeds RMB 37 Billion, Industry Concentration Remains Low, Domestic Companies’ Market Share Rises [Chart]_Zhiyan Consulting](https://www.chyxx.com/industry/1242648.html?utm_source=openai)
• Vastdata (603138)_Company Announcements_Vastdata: Response to the Review Inquiry Letter Regarding the Application Documents for Issuing Shares to Specific Investors by Beijing Vastdata Technology Co., Ltd. (Updated with 1H 2026 Financial Data)_Sina Finance
• 2025 Interim Investment Strategy for the Computer Industry
• [[Unknown Institution]: Exchange Minutes with Domestic Database Industry Experts, June 20, 2024: Current State of the Domestic Database Market - Discovery Report](https://www.fxbaogao.com/detail/4358012?utm_source=openai)
• Dameng Data (688692)_Company Announcements_Dameng Data: 2026 Interim Report_Sina Finance
• Dameng Data 2026 Interim Report: Revenue Exceeds RMB 700 Million, Net Profit Attributable to the Parent RMB 221 Million_Finance Channel_Securities Star
• Dameng Data 2025 Annual Report Review: Non-Recurring-Adjusted Net Profit Up 49.66%, R&D Investment Exceeds RMB 250 Million | Expenses_Sina Finance
• Dameng Data (688692) Earnings Forecast_F10_Tonghuashun Financial Services
• Earnings Forecast
• Dameng Data (688692): Strong 2025 Results and DM9 Released for the AI Era_Sina Finance
• Huachuang Securities: “Dameng Data (688692) 1H 2026 Results Review: Strong Buy (Maintained)—Results in Line with Expectations; AI+DB Opens a New Growth Curve” - Discovery Report
• Institutional Ratings|CICC Gives Dameng Data an “Outperform” Rating
• Dameng Data (688692) Stock Forecast and Analyst Ratings - Futu
• Dameng Data (688692) Historical Stock Data: Historical Prices and Charts_Investing.com
• Dameng Data (688692)_Company Announcements_Dameng Data: Summary of 2026 Interim Report_Sina Finance
• Dameng Data (688692)_Company Announcements_Dameng Data: Implementation Progress Report for the 2026 “Improve Quality and Efficiency, Enhance Returns” Action Plan_Sina Finance
• Dameng Data (688692)_Company Announcements_Dameng Data: Resolution Announcement of the 2026 Third Extraordinary General Meeting_Sina Finance
• Dameng Data (688692)_Company Announcements_Dameng Data: Indicative Announcement Concerning Changes in Shareholder Equity_Sina Finance
• Stock Market Must-Read: Dameng Data Announces on August 7 the Purchase of 2.217 Million Shares by a Shareholder_Stock Star
• Dameng Data (688692) Company Events_F10_Tonghuashun Financial Services
• Dameng Data (688692)_Company Announcements_Dameng Data: Verification Opinion and Explanation of the Publicity of the List of Participants in the Reserved Grant under the 2025 Restricted Stock Incentive Plan by the Board Remuneration and Assessment Committee_Sina Finance
• ZQ29B052-HJ
• https://static.cninfo.com.cn/finalpage/2026-07-02/1225403533.PDF
• Dameng Data (688692) All Announcements - Lixinger

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; technical indicators are primarily calculated using data as of the September 11, 2026 close, while the MACD and RSI sections use publicly disclosed data as of September 10, 2026. Timing differences may exist. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is provided solely for information organization and research reference and does not constitute investment advice of any kind. Investors should make independent judgments and bear investment risks themselves.