Jinwu Financial News | According to Fangzheng Securities Research Report, China Software International (00354) recently signed a series of important projects to help Hongmeng's native ecosystem develop with partners. In recent months, the company has continued to repurchase shares, fully demonstrating the management's confidence in the company's development and long-term value, and focusing on returns for all shareholders.
The bank said that Chinasoft International's broad CTSP cloud transformation service covers computing power and AI model services, big data and database services, cloud native services, Hongmeng applications, security, etc., making China Soft International cover more valuable customers and have strong stickiness. It has gathered more than 6000+ ecological partners to provide digital solutions and services for 20,000+ customers. Chinasoft International is Hongmeng's native application development and training diamond service provider, 2024HDC Huawei Hongmeng Ecological Excellent Service Provider and Pioneer Partner, and HarmonyOSConnect Solution Excellent Partner. At the end of September, it successfully won the bid for Hongmeng Ecological Service (Shenzhen) Co., Ltd.'s 'Hongmeng Native Application Launch Test Project', which will provide comprehensive single-frame testing services for TOP-level applications. The company recently signed a number of projects in the north-south direction of Hongmeng Ecology. The projects signed by Hongmeng cover the fields of smart homes, smart energy, healthcare, etc., to help manufacturers in various industries connect to the Hongmeng Smart Link platform.
The bank continued that as the leader of the Huawei ecosystem, the “1+3” strategy enhances customer coverage and revenue generation for individual customers, and the logic of volume and price growth is clear. From 2024 to 2026, the company's total revenue is expected to be 17.876/20.031/22.984 billion yuan, corresponding growth rate of 3.75%/12.05%/14.74%; net profit to mother is 0.755/1.005/1.238 billion yuan, up 5.86%/33.06%/23.16% year over year. The corresponding EPS is 0.28/0.37/0.45 yuan. Comparable companies forecast an average PE of 97.39/116.25/71.71 times for 2024-2026. The current price of Chinasoft International is 20.27/15.23/12.37 times PE in 2024-2026. The valuation is at a historically low level, the margin of safety is high, and it maintains a “highly recommended” rating.
